From NOLA to AI: Key Takeaways from the NJ Bankers Emerging Leaders Conference

After spending a tremendous couple of days in New Orleans with NJ Bankers, I've walked away with a couple of highlights and learning experiences.  Before going, I stated that New Orleans was a top 5 US city to visit and after returning home, I still think it's top 5.   A little different than when I was there every weekend 15 years ago, but the food is amazing and worth a trip to NOLA.   I got to participate in my first parade down Bourbon.  My ears are just now starting to recover from the band leading us out of the hotel.  My evenings were not spent at fabulous establishments on Bourbon Street, but rather fantastic meals around the city.   At an absolutely amazing event put on by NJ Bankers, I was able to connect with Emerging Leaders and experience Chef Eric teaching us all how to make gumbo, jambalaya, bananas foster, and pralines.   As Andrea stated, this is a place for people to come together that feel like they still have space to grow in their career.  

It was especially valuable to hear from Rob Nichols, President and CEO of the ABA, who spoke to the larger association about payment stablecoins, the growing consumer desire to earn interest, the need for cross-industry partnerships to minimize fraud, and the importance of "baking in the cake" some, if not all, of the recent regulatory changes in community banking. I also appreciated the discussion around the idea of the “Zen Banker” and the need for balance, simplicity, and adaptability in an industry facing constant change. Brittany Wheeler provided insight into the evolving political environment in New Jersey and how NJBankers intend to compete and win in the years ahead.

One of the most impactful sessions for me was the packed presentation from John Kowal and Steve Fusco on turning “Data Chaos into AI Excellence.”  As a show of hands illustrated, many banks are still working to organize their data into a centralized, trusted source, with very few institutions having what could truly be called a complete banking data warehouse. The eventual ability to leverage AI effectively is going to fundamentally change the way banks think about technology projects. Legacy technology projects success criteria may no longer apply, as AI initiatives will likely require constant iteration, evolving metrics, and continuous refinement rather than a simple “green” status and final completion date to the board.

John asked the thought-provoking question.  What happens if you lock a newly hired data analyst in a room with all the banks data and ask the analyst to produce a complete and valid balance sheet?    My literal mind went to a possible visit from the police and a meeting with HR, but I think the real purpose of the question was to illustrate where AI and Banks really are today.   No, I don't think a fresh data analyst could produce a bank balance sheet without guidance from bank leadership.   Why would it be any different for general AI tools applied to community bank unique reporting needs?   It's not popular to say, but for community banks, AI has a lot of room for value growth.   So maybe community banks will find small wins along the way.   What broken and time-consuming task can be evaluated and striped down to the purpose, allowing AI to accomplish the task more efficiently?  

Steve emphasized that banks must remove friction and create environments where access to data is easy and analysis becomes part of daily operations. Leadership teams need to stop treating the symptoms of data problems and instead address the underlying foundational issues. For some banks, frictionless data means building a data warehouse; for others, it may begin with better visualization and reporting capabilities. Either way, the banking industry clearly recognizes that strong data and accurate data are prerequisites for meaningful AI adoption.  With Steve's description of frictionless data, banks must avoid simply layering AI onto broken or inefficient processes. Again, banks have a tremendous opportunity to rethink how teams operate and how technology can support better outcomes.

Bill Hickey of Piper Sandler & Co. spoke about the competitiveness of New Jersey banks and the increasing pressure institutions face to differentiate themselves in a rapidly evolving market. That discussion reinforced, for me, that the long-term value of data is not simply efficiency, but creating revenue increasing actions.   Major General Anthony Genatempo reinforced the connection between strategy, cybersecurity, and AI usage. His discussion illustrated just how sophisticated attackers have become, particularly through “bank it for later” approaches to data collection and exploitation. The presentation served as a reminder that data security and privacy concerns are no longer theoretical discussions but active risks that affect both institutions and families personally.   Community banks that succeed with AI will be the ones that combine strong data practices, sound validation of good data, and deep banking expertise in partnership with technology solutions that genuinely improve customer and organizational outcomes.