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Citizens Bank is significantly increasing its investment in technology, building a robust foundation to harness the power of artificial intelligence (AI) and other advanced digital tools. This strategic focus is integral to its multi-year “Reimagine the Bank” initiative, a comprehensive project designed to drive both cost efficiencies and revenue growth.
Manny Tocco, COO and head of business banking strategy at Citizens, emphasizes a crucial balance: preserving the human element even as cutting-edge technologies like agentic AI become more prevalent. “Business customers still want to deal with people, but just like consumers, they expect decisions to be quick and digital experiences to be relatively seamless,” explains Tocco, a seasoned business banking executive.
Maintaining personal interactions offers business clients invaluable advice and expertise that they prefer not to obtain solely through digital channels. Tocco asserts, “They want a combination of the two, and one does not replace the other.” This philosophy underpins the bank’s “classic plus innovation” approach to business banking segments.
Nurturing the Connective Tissue of Business Banking
For many client segments and complex needs, Tocco champions the continued importance of bankers engaging directly with business customers. This means a proactive, on-the-ground presence.
“You want to do site visitations, you want to kick the tires with the management team,” Tocco states. He views strong face-to-face relationships with business executives, alongside key influencers such as CPAs and attorneys, as the “connective tissue” vital for successful business banking and effective advice delivery.
A significant benefit of this approach is improved judgment. Tocco notes that often, “the customer looks a lot better in person than they do on paper.” Consequently, local business banking leaders are required to accompany their relationship managers on client calls at least six times a week.
This strategy benefits customers by empowering them to navigate banking processes effectively. “The customer’s job is to run the business,” Tocco explains. “Our job is to educate them on how to navigate the bank — for example, how to secure credit.” This personalized guidance is particularly valuable for companies with sales ranging from $1 million to $50 million, poised for transition into corporate banking. For micro businesses under $1 million in sales, Citizens branches and virtual small business relationship managers offer support, blending digital engagement with essential banking services.
Furthermore, strong business relationships naturally foster opportunities for Citizens’ expanding private banking services, enhancing cross-sell potential.
Integrating AI as a Business Banking Enabler
Citizens has been diligently preparing for AI integration, including completing its migration to cloud computing by 2025. While initial AI efforts have involved small, focused pilots and the development of robust control frameworks, much of the “Reimagine the Bank” project will allocate significant spending towards AI deployment.
In business banking, AI is emerging primarily as an enabler, empowering bankers to perform faster, more thorough work. A prime example is pre-call planning for client visits. While essential for gaining insights and identifying product opportunities, gathering public domain and other data is time-consuming. “Implementing AI allows us to run down a lot of pre-call planning so our insights are of value to the business,” says Tocco.
How AI Will Transform the Business Banking Workforce
Tocco anticipates a shift in the business banking workforce as AI tools become more readily available.
- Traditional Bankers Adapt: “You’re going to have very good bankers who have historically operated in an analog way, and they will still be successful,” Tocco observes. Their strong market connectivity will continue to drive results.
- AI as a Performance Multiplier: However, AI will significantly boost others. “Bankers who know how to leverage new AI capabilities are going to suddenly catch up. If you can do this at scale, you’re going to start to see breakout performance,” Tocco predicts. He believes that Citizens’ adoption of such tools will create a distinct competitive advantage over other banks.
Agentic AI: A Strategic Competitive Advantage
Tocco views AI approaches that uncover new business opportunities as powerful levers for growth and customer acquisition. In upper-end business banking, acquiring new relationships is often “event-driven.” The banker who swiftly identifies a news development indicating new business needs gains a significant edge.
“Being there when something key happens is paramount, and that’s what can end up unseating a good prospect from the incumbent bank,” Tocco explains. This is increasingly facilitated by AI-driven tools that analyze buyer-intent data, pinpointing companies actively seeking specific financial products or services. Such clues can trigger automated workflows, sending targeted queries to prospects, or alert bankers to initiate timely follow-ups.
The successful integration of AI skills with core business acumen will define leading banks. Tocco emphasizes that customers will still expect business bankers to possess fundamental knowledge of balance sheets, accounting principles, and the ability to “advocate for them with the bank’s credit team.”
Recruiting for the Future Business Banker
The recruitment landscape for business banking professionals is evolving rapidly. Tocco notes that banks now must demonstrate to prospective hires the availability of comprehensive AI capabilities, as candidates increasingly inquire about the tools they will use to perform their jobs effectively.
Regarding employment impact, Tocco anticipates a reduction in back-office support staff as servicing becomes more automated. On the front end, the impact will be more nuanced. While technologies like agentic AI enable greater “scale” by reducing prep and monitoring burdens, allowing bankers to dedicate more time to client interactions, the necessity of face-to-face engagement places a limit on significant staff reductions. For larger clients with complex needs, human advice and counsel remain indispensable.
Source: Thefinancialbrand.com