Traditional banks have spent many decades building trust and stability, but today their legacy systems are struggling to keep up with the fast-paced AI revolution.
Now customers demand hyper personalized as well as instant financial experiences, but banks are also utilizing agentic AI, and that tech is executing transactions, helping with hyper-personalized wealth management, as well as bringing high-speed compliance.
KYC to the banking sector.
So how can banks innovate faster and safer.
Well joining me this morning live from the New York Stock Exchange is Rob Rooney, co-founder and CEO of Hyperlayer.
Thank you so much for joining.
Good morning.
Well first and foremost, let's talk about legacy systems.
So hyper layer actually help traditional banks close this gap that's happening, especially when it comes to.
The agility gap.
I think today banks are under attack from all sides, whether it's the neobank disruptors or the threats of agentic banking, and the challenge that they have is their systems were not built to react and respond to this, but they were built for stability.
Fundamentally they do work.
Often the answer has been perceived to be let's rip out those legacy systems.
And replace them with new engines essentially, but the last 10 years have proven that's super hard, super complicated, quite expensive, really risky.
But we've kind of discovered that the ability to put intelligence and an orchestration layer on top of existing core technology is a much better answer for these banks to catch up and maybe get past what the disruptors are doing.
Yes, and speaking of which, when we're talking about financial services, we know it's a highly regulated industry.
So when we're combining AI in particular gentech AI, where do you stand and what do you think really needs to happen?
So I think 11 word Remi that isn't spoken often enough in financial services, especially in the Disruption space is trust, and what the incumbent banks do have is trust.
And when you're talking about people's money, trust really, really matters.
And so these banks need to leverage that trust factor that they have where they're taking care of people's money and allow agentic to evolve in that ecosystem.
And I think that's really critical because the agents are coming.
Customers are demanding it.
It's like the arrival of the internet or the arrival of the smartphone.
People are going to want to be able to do things in financial services apps that they can do in their smartphones, so you're going to see massive consolidation.
But the trust factor is really going to matter, so I think the banks who can lean into this, bring the agents into trusted ecosystems, allow their customers to do most of their daily financial lives inside their ecosystems, their savings, their spending, their wealth management, their points and rewards, all the stuff that matters to somebody.
I think the agents are going to accelerate the demand for that, so the banks are going to.
Need proper intelligence on their existing technology and Rob, you mentioned a lot of points that we're watching here on Wall Street as well as on Main Street here.
So if I understand this correctly, you believe in extending a bank's core instead of replacing it entirely.
So.
Well, I mean if you a terrible metaphor, if I can, is your car, right?
If you really want to upgrade the driver experience behind the wheel, you don't replace the engine, right?
You install Apple CarPlay if you.
About all these driverless cars, they are still using traditional engines and traditional brakes and all of the core infrastructure, and it's really the software on top of that core infrastructure in a car that's making all the difference.
And we think that's an opportunity for banks.
It isn't to say never replace your core infrastructure, but the core infrastructure is not the problem for the customer functionality, and it's not the solution.
And finally, before I let you go, how do you guarantee proper?
Fraud controls as well as human oversight when it comes to something like this.
So what you do and that is the really critical point and thank you for asking that.
This is all about real-time conditional rules orchestration and it starts with the bank's rules and the banks effectively allow their customers to operate inside of the rules and regulations that they permit and in that though they allow the customers to configure their own experiences inside.
The walled garden of a bank ecosystem, so you really get the best of both worlds.
You get full configurability for the customer and the product owners in the bank, but you get it within the walled garden or the ecosystem that's already approved by the banks.
And finally, before I let you go, for viewers out there who might be watching this right now and they haven't had great experiences in terms of their consumer banking experiences on their apps, how do you see all of this playing out in the long run.
I think in the next 3 to 5 years, I think today life is about fragmentation, right?
I have to go here for my spending and my checking account.
I've got to go there for my wealth management.
That's all about the limitation primarily of technology in these segregated ecosystems, including some of the fintechs, and I think what modern technology, particularly Agentech, is bringing us is going to be a massive consolidation and for the customer that's going to be your kind of whole.
Life experience in a single place.
And what's fascinating about this trend, the technology is enabling it, right?
But really critically, the customers really want it and so do the banks.
Every commercial bank we know wants more wealth management capabilities.
Every wealth manager we know is trying to bring in more everyday banking capabilities.
But I think for the customer it's going to be a big, big win.
Rob, great having you here.
Thank you so much for joining us today and thank you so much for sharing all of your insights.
Super.
Thank you for being here.
Thanks for your time.
Thank you.
