Transform Banking with AI: Risk, Automation & Leadership Insights

Artificial intelligence is reshaping the financial services landscape, and fintech innovators are leading the charge. In this episode of Next Gen Banker, Jeff Keltner, SVP of Business Development at Upstart, dives into how AI is improving access to credit while reducing risk for banks. Meanwhile, on the Finnovate Podcast, leadership consultant Jacqueline Baker explores the broader human side of innovation, showing how unexpected leaders drive organizational growth.

Here’s a concise overview of the key insights from both conversations.

Expanding Access to Credit with AI – Jeff Keltner, Upstart

Jeff Keltner shares how Upstart leverages AI to expand financial inclusion and enhance lending operations:

Predictive Algorithms for Risk Assessment:

→ Upstart analyzes thousands of data points—beyond traditional credit scores—to predict repayment likelihood.

→ Over 80% of Americans have never defaulted on a loan, yet less than half have prime credit scores. AI helps identify creditworthy borrowers who may be overlooked by traditional models.

Streamlined Onboarding:

→ AI reduces friction in loan applications. By automating verification processes, Upstart enables over 75% of originations without human intervention.

→ Simplifying the experience not only improves conversion rates but also attracts better-quality borrowers who value efficiency.

Tailored Lending for Underserved Communities:

→ AI allows banks to serve lower-credit or underserved populations profitably by accurately assessing risk and automating small-dollar loans.

→ This opens access to vital capital, supporting both consumer and small business growth.

AI Across the Lending Lifecycle:

→ Beyond underwriting, AI is applied in fraud detection, marketing optimization, and portfolio risk management.

→ These capabilities improve operational efficiency, reduce costs, and enhance the borrower experience without replacing human interaction.

The Next-Gen Banker:

Keltner predicts that future bankers will need fluency in data and technology.

Successful bankers will integrate AI insights with human judgment to provide personalized, high-quality customer experiences.

Leadership in Innovation – Jacqueline Baker

Jacqueline Baker emphasizes the importance of recognizing leadership at all levels, particularly in dynamic sectors like fintech:

Unexpected Leadership:

→ Leadership often emerges in unexpected places and roles.

→ Individuals can lead effectively without formal titles by leveraging skills from life and professional experiences.

Developing Self-Leadership:

→ Founders and early-stage leaders must see themselves as leaders from day one, balancing innovation with the responsibility of guiding others.

Holistic Leadership:

→ Skills like negotiation, delegation, and influence extend beyond the workplace.

→ Leaders who recognize and apply their full capabilities in all contexts drive stronger outcomes.

Corporate Innovation Lessons:

→ Baker’s experience at AARP Innovation Labs demonstrates the value of curiosity, flexibility, and maintaining relationships.

→ Organizations that cultivate adaptive leaders and embrace innovation benefit both internal teams and the broader community.

Key Takeaways

→ AI transforms credit assessment: Sophisticated algorithms identify creditworthy borrowers overlooked by traditional models.

→ User experience drives adoption: Frictionless onboarding increases conversion and enhances customer satisfaction.

→ Financial inclusion benefits communities: Automated, small-dollar lending supports underserved populations and small businesses.

→ Leadership is universal: Effective leadership emerges from diverse experiences and requires intentionality.

→ The banker of the future blends tech and human insight: Data fluency, technology understanding, and customer empathy are essential.

Implications for Fintech and Banking

AI is no longer experimental in banking—it is a strategic lever for growth, inclusion, and operational efficiency. Institutions that combine cutting-edge technology with intentional leadership will lead the next generation of financial services.

By embracing AI responsibly and fostering leadership at every level, banks can improve customer outcomes, expand access to capital, and create resilient, innovative organizations.