Deposit pain eases for banks as Fed rate cut nears

Banks are testing the waters on paying depositors lower interest rates, and analysts expect they’re due for a bigger breather when the Fed takes action. It’s a welcome shift for banks, after competition for deposits forced them to pay up.

AI use in customer service faces legal challenges that could hit banks

Air Canada was penalized for misinformation generated by its chatbot; Patagonia has been accused of letting a vendor’s AI model listen to and analyze customer service conversations without consent. These cases have parallels in banking, where many institutions use AI-based chatbots and contact center software.