AI in banking: the good, the bad, and the efficient

**SPEAKER_1** (0:00)
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**Megan McCarty-Corino** (0:31)
AI banking. What could go wrong? From American Public Media, this is Marketplace Tech. I'm Megan McCarty-Corino.
Like so many other industries, the banking sector is figuring out how to navigate AI, and the stakes are high. The tech has raised red flags over potential bias, particularly when it comes to lending practices. But it could also make some banking operations more efficient, which would be especially valuable for smaller banks, which tend to operate with fewer resources than bigger competitors, but also offer more personal service, a connection to the local community, and often have lower fees. The catch? Those banks can't necessarily afford to pour resources into AI.
Marketplace's Justin Ho spoke with bankers at some smaller institutions about how they're approaching the technology and their concerns about the future of AI in banking.

**Justin Ho** (1:38)
A few days ago, I caught up with Dominic Miarten. He's the CEO of American Pride Bank, a small lender based out of Macon, Georgia. He was on the road talking to AI software.

**Dominic Miarten** (1:47)
As I was driving, I was putting together, you know, basically executive scorecards for our executive team meeting this afternoon.

**Justin Ho** (1:55)
Miarten says those scorecards cover how many loans the bank made last week, how much interest it pulled in, how much money customers deposited by branch and by region.

**Dominic Miarten** (2:04)
Which normally would have taken, you know, our CFO or someone talking a few hours of work to do a decent job.

**Justin Ho** (2:11)
Instead, it took minutes. Miarten says the bank's been rolling out AI software for annual performance reviews, budgeting and market research. Meanwhile, at First Southwest Bank in Colorado, AI is reviewing loan documents and preparing staff for meetings with borrowers. Christy Escobel is Chief Credit Officer.

**Christy Escobel** (2:28)
So if a customer comes in with a loan application, we want to be able to operate 10 times or more the speed that we did before and really focus on aspects of the relationship instead of the administrative piece.

**Justin Ho** (2:41)
But Escobel says her bank is not using AI to make any decisions about loans. She's concerned about how the software analyzes data. For instance, what if AI denies an application from a worthy borrower who happens to live in a low-income zip code?

**Christy Escobel** (2:55)
I think any AI tool that we put in place, you're going to have to ensure that it's not creating its own bias or consistent practices that you don't intend to put in place. Escobel says she also has concerns about AI's accuracy and privacy because at the end of the day, you're ultimately responsible for what your software and vendors are doing and so I think regulators are going to expect banks to really understand their models, ensure consumer protection.

**Megan McCarty-Corino** (3:24)
We'll be right back.

**SPEAKER_1** (3:27)
This Marketplace podcast is presented by Tomorrow's Cure. If our episodes on the intersection of AI and healthcare left you wanting to learn more about how technology is transforming medicine, Tomorrow's Cure is for you. It's the chart-topping 2025 AMBE Award finalist podcast from Mayo Clinic. Back for a brand new season with new host, award-winning journalist Lindsay Sievert, Tomorrow's Cure explores the innovations changing the healthcare landscape. Featuring conversations with leading physicians, researchers, and medical experts, the new season examines everything from AI-powered diagnostics and cutting-edge cancer therapies to surgical technologies improving patient care today.
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