Bank of America and Capital One are managing costs by restricting the use of large AI models, according to executives speaking at the Evident AI Symposium. The banks are opting for smaller models to keep expenses in check while still pursuing AI-driven projects.

This approach could shape how other financial institutions balance innovation with cost management. For senior leaders, the decision signals the importance of weighing the operational benefits of advanced AI against the financial impact of deploying large-scale systems.

Galaxy Digital is seeking a national trust charter from the OCC, according to CEO Mike Novogratz. The move would allow the company to provide digital asset custody, trading, staking and fiduciary investment advisory services under a single federal regime.

This matters for banks and financial firms as it could set a precedent for how digital asset services are regulated at the federal level. Senior leaders should monitor OCC actions, as any approval could affect competitive positioning and regulatory expectations for digital asset operations.

UMB will acquire El Dorado Savings Bank for $506 million, according to Banking Dive. The Missouri-based lender's CEO, Mariner Kemper, said that while additional acquisitions are possible, he is not interested in deals that require giving up board seats.

This deal signals ongoing consolidation in US regional banking. For senior executives, the focus on board control may affect future M&A strategies and negotiations. Further acquisition activity could reshape competition and governance in the sector.

Valley Bank's chief operating officer said that while bank mergers have a well-known process, the Bluevine acquisition brings unique aspects that differ from standard deals, according to Banking Dive. The executive described the integration as having features not usually seen in bank M&A.

This matters for senior leaders in regulated finance because non-traditional deals may require new approaches to integration and risk management. Firms considering similar transactions should watch for updates on how Valley Bank manages these differences.

PNC CEO Bill Demchak told Banking Dive that the bank is moving its focus from mergers and acquisitions to artificial intelligence, with plans to spend hundreds of millions to achieve savings in the billions. Demchak said this AI push will take priority for the next few years.

This signals a shift in how large US banks are allocating capital between traditional dealmaking and technology upgrades. For senior executives, the move suggests a change in competitive strategies and cost structures in banking. It may also affect the pace and scale of future M&A activity.

Banking Dive reports that Ripple has received unconditional charter approval from the OCC, the US banking regulator. The fintech is now expanding its partnerships with BNY and Robinhood, according to the source.

This development signals increased regulatory acceptance of fintechs in banking, which may create new opportunities and risks for established banks and financial institutions. Senior executives should monitor Ripple’s next steps and consider the implications for partnerships and competition.

Morgan Stanley has changed its approach to data to enable artificial intelligence in its wealth management unit, according to Hina Shamsi, chief information officer for wealth management technology, as reported by Banking Dive.

This move is relevant for digital and technology heads in regulated sectors who are under pressure to modernise data infrastructure for AI. The way Morgan Stanley adapts its data strategy could influence how other firms address client service, compliance and operational risk.

A US senator has urged the Federal Reserve, OCC and FDIC to restore powers for bank examiners, according to Banking Dive. The senator said that policies restricting when examiners can issue warnings and take enforcement actions make banks more vulnerable to rising AI and cybersecurity threats.

This call draws attention to regulatory gaps in digital risk oversight. If agencies act, banks could face more frequent interventions and stricter compliance checks. Senior executives should monitor for any policy changes that could alter supervisory expectations for technology and cyber risk controls.

Citi’s global head of AI, digital and data platforms said at Money20/20 that the bank is intentionally moving slowly on giving access to AI agents. He stated, “There are places in which we want to go faster. This is not one of those places,” according to Banking Dive.

This approach signals Citi’s focus on risk management and careful governance as it considers AI deployment in sensitive banking operations. For senior leaders in regulated sectors, Citi’s stance is a reminder to balance innovation with operational and compliance risks.

BitGo has seen increased interest from banks since it obtained an unconditional charter from the Office of the Comptroller of the Currency, according to an executive cited by Banking Dive. The company says more banks are now approaching it to discuss digital asset custody.

This matters for banks and payment firms watching regulatory attitudes to crypto. Growing engagement with BitGo may indicate a shift in how traditional financial institutions view digital asset services. Executives should consider the implications for compliance, partnerships and competitive positioning.