American Banker urges workflow redesign

American Banker published an August 5 analysis arguing that banks will struggle to earn meaningful returns from artificial intelligence unless they redesign workflows around how work is actually done. The piece, written by Larry Cao, CFA, said models, data and workflow all matter, but that workflow is where banks can build an advantage. It framed the issue as more than a technology purchase, saying banks need to rethink how people, systems and processes fit together. The argument surfaced as American Banker continued broad coverage of AI strategy across banking operations. (americanbanker.com) ### Why is workflow, not the model itself, the focus here? Larry Cao wrote on August 5 that “proprietary workflows create a competitive edge,” placing workflow alongside models and data as a core determinant of AI returns. In the article, he said banks need to redesign workflows around proprietary data, domain expertise and the way people and technology work together, rather than dropping AI tools into unchanged routines. American Banker’s article said the question came up during a panel at the publication’s Digital Banking Conference in Orlando. (americanbanker.com) The discussion asked whether proprietary models matter most, and the article’s answer was that workflow design is the more durable differentiator when banks are trying to turn AI investment into operating results. ### How does that connect to bank branches and physical space? The article’s logic extends directly to branch operations because workflow shapes what work stays local and what can move elsewhere. (americanbanker.com) If customer intake is digital, appointments are scheduled, and processing is centralized, a branch can operate with less back-office space and fewer transaction-heavy layouts. That leaves more room for advice, sales and customer meetings, while reducing the footprint tied to tasks that no longer need to happen on site. This is an inference drawn from the workflow argument in the American Banker piece and from the publication’s broader AI-in-banking coverage. American Banker’s conference and strategy materials have been making a similar point in other contexts: scaling AI requires new operating models, modern infrastructure and redesigned structures, not just experimentation. That framing supports the idea that branch format decisions increasingly follow workflow redesign rather than the other way around. ### What does this mean for branch relocations and redesigns? A relocation decision changes when a bank first decides which tasks must remain in the branch. (americanbanker.com) If account opening, document collection, service triage and routine processing are handled digitally or in centralized hubs, the branch no longer needs to be built around counters, filing areas and dense support space. It can be smaller and more meeting-oriented. That conclusion is an inference from the article’s workflow argument, not a direct quote from the piece. (americanbanker.com) American Banker’s recent coverage of small-business banking priorities also points to banks seeking more efficient branch bankers and smoother onboarding. Those priorities fit the same pattern: redesign work first, then fit technology and space to the new process. ### Why does this matter for AI spending discipline? American Banker has separately reported that banks are among the heaviest AI spenders and are still trying to prove returns on those investments. In that context, Cao’s argument is a warning that spending on models alone may not produce measurable gains if the surrounding process remains fragmented, manual or duplicative. (americanbanker.com) American Banker’s event and editorial pages also show the industry pushing from pilots toward enterprise deployment. (americanbanker.com) Those materials describe AI adoption as dependent on governance, trusted data, infrastructure and new operating models, reinforcing the article’s view that workflow redesign is part of the return-on-investment equation. ### Where does American Banker place this in the broader AI debate? American Banker’s AI coverage page lists the August 5 workflow article alongside reporting on financial advice, compliance, data centers and enterprise AI deployment. (americanbanker.com) That placement shows the publication treating workflow redesign as part of a larger banking debate over how AI changes execution, control and customer service. The next reference point is likely to be American Banker’s continuing conference and AI coverage, including its November 19 virtual summit on “The Agentic Bank,” which says redesigned operating structures and strategic priorities will shape how banks realize value from autonomous AI systems. (americanbanker.com) (virtual-summits.americanbanker.com) (americanbanker.com)