As GenAI capabilities accelerate, Amex is reshaping its strategy to focus on how intelligent agents can drive internal workflows and power the next generation of customer experiences. To support fast experimentation, strong security, and policy enforcement, Amex developed an “enablement layer” that allows for rapid development without sacrificing oversight. Within this system is Amex’s concept of modular “brains”—a framework in which agents are required to consult with specific “brains” before taking action. These brains serve as modular governance layers—covering brand values, privacy, security, and legal compliance—that every agent must engage with during decision-making. Each brain represents a domain-specific set of policies, such as brand voice, privacy rules, or legal constraints and functions as a consultable authority. By routing decisions through this system of constraints, agents remain accountable, aligned with enterprise standards and worthy of user trust. Hillary Packer, EVP and CTO at American Express stressed the need to move quickly, but with intent. “Don’t wait for a bake-off,” Packer advised. “It’s better to pick a direction, get something into production, and iterate quickly, rather than delaying for the perfect solution that may be outdated by launch time.”
Banks can compete with Robinhood which has amassed $18 billion in deposits with integrated investing services that allow consumers to invest directly from their checking account and offer bundled financial wellness features like credit score monitoring and subscription management
The deposit displacement numbers are staggering—and deeply concerning for banks and credit unions. According to research from Cornerstone Advisors and Investifi, more than $3 trillion has slipped out of banks’ and credit unions’ coffers and into the hands of fintechs, neobanks, and digital investment platforms over the past few years. This isn’t just a passing trend—it’s a full-scale displacement of deposits that threatens the foundation of community financial institutions. And at the center of this disruption lies an unexpected culprit: consumer investing. At the center of the situation is the changing role of the checking account. At the center of the investing-led deposit displacement is Robinhood who has amassed more than $18 billion in deposits—despite the company’s fines and business model. The deposit displacement crisis isn’t irreversible. Cornerstone estimates that banks and credit unions can realistically reclaim about a third of the nearly $2 trillion in funds lost to fintech investing platforms. The key? Developing integrated investing services that:
- Allow consumers to invest directly from their checking account.
- Offer bundled financial wellness features like credit score monitoring and subscription management.
- Provide seamless, mobile-first investment experiences within existing digital banking platforms.
- Deliver targeted education to demystify investing, especially for young consumers who believe they don’t have enough money to get started.
- In fact, 70% of non-investing Gen Zers and Millennials report having more than $5,000 in savings—plenty to open an investment account. The problem isn’t capability—it’s awareness and access. Community banks and credit unions can’t simply “market harder” or “be cool like Robinhood” to win back lost deposits. They must:
- Reimagine their checking and savings products to integrate investing; Partner with fintechs or investtech providers to embed seamless investment options; Equip consumers with tools and education to overcome investing barriers; Expand digital capabilities to meet the expectations set by neobanks and crypto platforms. The $2 trillion deposit outflow isn’t just a threat—it’s a wake-up call. Banks and credit unions have a limited window to evolve their product offerings, digital experiences, and customer education strategies to stem the tide.
QR Codes make a splash in the real time payments pool – X9 payment QR code standard introduces a common language for encoding payment data, so single QR code can work across multiple networks, such as FedNow, ACH, and TCH RTP
QR code payments have taken a big step towards becoming not only a mainstream payment option but also one that can accelerate the adoption of real-time payments. Late last week, the technology was used to facilitate a transaction over the FedNow network using the X9 standard. The demonstration transferred funds in one second from a credit union to a Top 4 bank in the United States. During the test, a bill was presented to a payer with a merchant-generated QR code. Upon scanning the code, the payer authorized the transaction via the payer’s credit union’s mobile app. Assisting in the transaction was technology from Matera, a fintech specializing in instant payments and QR code technology. Also involved in the transaction were Tyfone Inc., a digital-banking and -payments platform provider, and real-time payments provider Payfinia Inc., a Tyfone company. Key to making the transaction possible was the X9 payment QR code standard. Developed by the Accredited Standards Committee X9, the X9 standard introduces a common language for encoding payment data in “a secure, structured, and extensible way,” according to Matera. As a result, a single QR code can work across multiple networks, such as FedNow as well as the automated clearing house and The Clearing House’s RTP network. It can also work with different banks. The standard also supports multiple use cases, such as consumer-to-business, business-to-business, and peer-to-peer payments. Matera chief executive and co-founder Carlos Netto said “It opens the door to a broad range of use cases, bill payments, in-store payments and ecommerce, all initiated by QR code and settled in real time. Ultimately, this payment QR Code can accelerate the adoption of instant payments.”
U.S. Bank is first to utilize blockchain-based platform , which supports encrypted document transfers between trading partners and their banks in a fully digital trade finance process
U.S. Bank has completed its first trade finance collection transaction using a fully digital process, marking a step forward in the bank’s efforts to modernize trade and working capital services for clients. U.S. Bank is the first American bank to utilize the blockchain-based WaveBL, which supports encrypted document transfers between trading partners and their banks. “Our clients are looking for smarter, more efficient ways to manage their import and export activities,” said Christine Bravo, Senior Vice President, U.S. Bank. “This fully digital process is a step toward delivering the speed, transparency and reliability businesses need in today’s trade environment.” In this transaction, U.S. Bank served as the presenting bank for the exporter, a large U.S.-based publicly traded firm. Container shipping company MSC Mediterranean Shipping Company issued the electronic bill of lading and facilitated the shipment. Previously, a transaction like this would have required a courier to physically transport documents across continents, often taking several days. By contrast, the digital process reduced that timeline to minutes–eliminating delays, enhancing security and compliance, and avoiding disruptions from weather, pandemics, or geopolitical events. The shift toward digital documentation in trade and working capital is accelerating as businesses look to cut costs, reduce delays and enhance transparency. This initiative demonstrates how digital tools can streamline import and export trade transactions by lowering courier and storage expenses and minimizing the risk of lost or delayed paperwork.
Apple, Visa and Mastercard win dismissal of merchant antitrust lawsuit claiming that Apple illegally declined to launch a competing payment network to rival Visa and Mastercard
Apple, Visa and Mastercard have persuaded a U.S. judge to dismiss a lawsuit accusing them of conspiring to suppress competition in the payments network market and causing merchants to pay inflated transaction fees. U.S. District Judge David Dugan in Illinois ruled that the merchants had not provided enough evidence to support their claim that Apple illegally declined to launch a competing payment network to rival Visa and Mastercard. Dugan found that the plaintiffs offered only “a slew of circumstantial allegations,” but allowed them to amend their lawsuit to strengthen their claims. The defendants had denied any wrongdoing and urged Dugan to dismiss the lawsuit. Apple launched its Apple Pay feature in 2014 as a mobile payment service allowing iPhone users to store payment card information and make purchases at businesses where the platform is accepted. The lawsuit, filed by beverage retailer Mirage Wine & Spirits and other businesses, was brought on behalf of a proposed class of thousands of merchants. The lawsuit alleged Visa and Mastercard paid Apple what amounted to a “very large and ongoing cash bribe” of hundreds of millions of dollars a year to keep it from competing with them. The alleged agreements drove up fees that merchants pay on transactions, the lawsuit said. Visa and Mastercard had disputed claims of making payments to Apple, and had argued that the iPhone maker in its agreements with the networks expressly preserved a right to compete with them. Apple argued that the complaint failed to show that the company had any plan to enter the payments network market and compete with Visa or Mastercard. In his ruling, Dugan said the merchants’ allegations “completely ignore the difficulties, costs and time, risks, and potential for failure associated with such an endeavor.”
CUs and community banks can now leverage Payfinia an open payments framework to enable seamless access to the EWS Paze digital wallet checkout experience
Payfinia, an independent payment services firm providing an open payments framework, announced its partnership with Early Warning Services to offer PazeS an online checkout solution developed by Early Warning Services and offered by participating banks and credit unions. Star One Credit Union, one of the nation’s largest credit unions with more than $9 billion in assets, is the first financial institution onboarding Paze through Payfinia. “We’re proud to be launching Paze for Star One Credit Union customers later this year, bringing a seamless digital wallet experience to our 132,000 members,” said Minal Gupta, president, at Star One. Paze is a fast, easy, and convenient online checkout solution that offers added security through tokenization, where actual card numbers are never shared with merchants. Participating financial institutions will now leverage Payfinia’s digital wallet services to streamline the secure exchange of eligibility information and enable seamless access to the Paze digital wallet checkout experience. Payfinia’s digital wallet service includes a confidential computing overlay that protects critical user data supplied by financial institutions. “The confidential computing overlay service enables Payfinia to process and analyze financial data in a safe environment, ensuring both speed and security for the financial institution and their digital wallet users,” said Nizar Jamal, CTO of Payfinia. “Through our partnership with Payfinia, credit unions and community financial institutions will now have a more streamlined path to offering Paze,” said Eric Hoffman, chief partnerships officer at Early Warning Services. “Payfinia’s trusted relationships and technical capabilities make them an ideal partner to help extend the reach of Paze—bringing a fast, easy and convenient online checkout experience to more consumers through the institutions they know and already use.” According to the Paze PulseSM report, 82% of Americans report trusting their bank’s security more than third-party payment options, indicating strong consumer appetite for financial institution-provided digital wallets. “More consumers are demanding a seamless eCommerce checkout experience, and they prefer to initiate the checkout process through a digital banking solution offered by their financial institution,” said Keith Riddle, general manager of Payfinia. “We are thrilled to partner with Early Warning Services to offer Paze to our open payments framework and eCommerce services as a means for community financial institutions to enhance the digital wallet experience revenue. Through this partnership, our clients will have a seamless, eCommerce service, creating more efficient checkout experiences and satisfied consumers.” Gupta added, “Star One has been a long-standing partner of Payfinia, and together we’ve already seen the impact of modern payments infrastructure on member engagement. By enabling Paze, we’re helping them take the next step—delivering a streamlined eCommerce checkout experience that aligns with how members want to shop today.”
Wells Fargo decides to exit early from rewards-for-rent credit-card partnership with Bilt, following pull back by the bank in the mortgage space
Wells Fargo is ending a flashy credit-card partnership that lets people earn rewards points for charging their rent. The partnership with Bilt had been scheduled to end in 2029, but Wells decided to exit early after it became a money-losing venture, according to people familiar with the matter. Wells warned Bilt it could change the card’s terms otherwise, including tacking on an annual fee of around $250 to $300 for cardholders. Bilt said it is developing its Bilt Card 2.0 with fintech firm Cardless and that its valuation skyrocketed to $10.75 billion. The company said the new card will launch in February and that cardholders will be moved from Wells Fargo. Wells’ partnership with Bilt was launched in 2022 as part of the bank’s plans to build out its co-branded credit-card business. The Bilt card quickly became a hit because of a rare perk: It lets cardholders earn rewards points for charging their rent. Wells had originally seen the card as a way to attract young customers who would eventually turn to it for a mortgage. But the bank has since pulled back in the mortgage space and by mid-2024, Wells was losing as much as $10 million a month on the card. At that time, Bilt and Wells expressed their commitment to the partnership. Most landlords historically didn’t accept credit cards because they refuse to pay the fees for card transactions that often run between 2% and 3%. Bilt structured the card so landlords won’t incur the fees. Wells instead has been eating much of that. This has led to Wells paying Bilt a fee for each rent transaction. Interest income Wells expected from card balances didn’t materialize because many cardholders have been paying their bills in full each month. The partnership also raised concerns inside Wells about potential money-laundering risks, which the companies have worked to address. When people charge rent on their cards, a third-party company sends a check for that amount to the designated landlord. That is easy for Bilt to track for a real-estate company that participates in its rewards program, but harder when it is a mom-and-pop landlord or other company. Wells’ financial losses triggered a renegotiation of the program that began in 2023. By the second half of last year, Wells was pushing for big changes, including lowering the fee it pays Bilt and scaling back the points cardholders earn for rent payments. One scenario involved cardholders having to spend on non-rent purchases to be able to earn points on their rent charges. Early this year, Wells told Bilt the card’s terms will have to be totally redone or the bank would look to exit the program.
Amazon’s Bedrock agents power Rocket’s app-embedded conversational AI assistants allowing them to interpret user intent, plan and execute tasks, and integrate seamlessly with enterprise data and APIs
Rocket’s web and mobile app brings together home search, financing, and servicing in one seamless experience. By combining data analytics and their 11PB of data with advanced automation, Rocket speeds up everything from loan approval to servicing, while maintaining a personalized touch at scale. Rocket’s client-first approach is central to everything they do. With customizable digital tools and expert guidance from skilled mortgage bankers, Rocket aims to match every client with the right product and the right support quickly, accurately, and securely. Rocket AI Agent is a conversational AI assistant designed to transform how clients engage with Rocket’s digital properties. Built on Amazon Bedrock Agents, the Rocket AI Agent combines deep domain knowledge, personalized guidance, and the ability to perform meaningful actions on behalf of clients. Since its launch, it has become a central part of Rocket’s client experience. Clients who interact with Rocket AI Agent are three times more likely to close a loan compared to those who don’t. Because it’s embedded directly into Rocket’s web and mobile services, it delivers support exactly when and where clients need it. With built-in integrations and security, customers like Rocket use Amazon Bedrock Agents to accelerate from proof-of-concept to production securely and reliably. These agents extend foundation models (FMs) using the Reasoning and acting (ReAct) framework, allowing them to interpret user intent, plan and execute tasks, and integrate seamlessly with enterprise data and APIs much like a skilled digital assistant. Agents use the FM to analyze a user’s request, break it into actionable steps, retrieve relevant data, and trigger downstream APIs to complete tasks. This allows Rocket AI Agent to move beyond passive support into proactive assistance, helping clients navigate complex financial processes in real time.Key capabilities of Amazon Bedrock Agents used in Rocket AI Agent include:
- Agent instructions – Set the agent’s objective and role (for example, a mortgage servicing expert), enabling goal-oriented behavior
- Amazon Bedrock Knowledge Bases – Provide fast, accurate retrieval of information from Rocket’s Learning Center and other proprietary documents
- Action group – Define secure operations—such as submitting leads or scheduling payments—that the agent can execute by interacting with Rocket’s backend services
- Agent memory – Memory retention allows Rocket AI Agent to maintain contextual awareness across multiple turns, enhancing user experience with more natural, personalized interactions.
- Amazon Bedrock Guardrails – Supports Rocket’s responsible AI goals by making sure that the agent stays within appropriate topic boundaries.
U.S. Bank’s transaction services team sees an uptick in companies adopting foreign exchange options to hedge their currency exposure in a time of uncertainty
To survive and thrive, companies are adapting and evolving, using strategies to reduce risk, consolidate liquidity and optimize supply chains. Key risks facing global companies
- Tariff uncertainty makes it challenging for importers and exporters to make longer term decisions and potentially raises expenses. One of the foremost concerns for importers and exporters is currency risk, Tarek El-Yafi, head of global transaction services U.S. Bank said. With transactions occurring across borders, fluctuations in exchange rates can significantly impact profitability. Compounding this risk is the potential of countries protecting their currency by imposing currency restrictions, trapping cash, increasing risk and driving up costs for global companies. Another significant challenge is supply chain disruption, he said. The COVID-19 pandemic exposed vulnerabilities in global supply chains, and ongoing geopolitical tensions (such as the wars in Ukraine and the Middle East) continue to generate uncertainty.
- Reducing Risk: U.S.-based companies that do business overseas are mitigating risk through a number of strategies. Paula Comings, head of U.S. Bank FX Sales, said one method to potentially get improved pricing is by paying foreign vendors in their local currency. A second approach that companies are increasingly adopting is using foreign exchange options to hedge their currency exposures. “We’ve seen an uptick in options across our client base, whether it’s a small-, mid- or large-cap companies,” said Comings. “By using options, companies can protect themselves from adverse movements in exchange rates, while maintaining the ability to participate in favorable currency movements.” El-Yafi added that another primary tactic is consolidating banking with a strong U.S.-based counterparty. “Even large banks that are very well capitalized may decide to exit certain countries, leaving global clients in a tough situation,” he said. Firms are partnering with banks that are well capitalized, have solid credit ratings and offer the international banking solutions global companies require.
- Consolidating liquidity: A relatively new capability is opening a foreign currency account (FCA) in the United States. An FCA allows businesses to hold and manage funds in foreign currencies, and can be used for sending money abroad, paying international vendors, or managing income from overseas sources. FCAs can be opened in more than 20 currencies. “By opening foreign currency accounts in the U.S., companies can have FDIC insurance and repatriate excess cash back to the U.S., while avoiding the need for immediate currency conversion,” El-Yafi said.
- To enhance resilience, companies are diversifying their supply sources, said Mike Stitt, head of Supply Chain Finance Sales for U.S. Bank. “This strategy ensures that businesses are not overly reliant on a single supplier, reducing the risk of disruptions,” Stitt said. Additionally, nearshoring and reshoring efforts are gaining traction, as companies seek to bring production closer to their customer bases, minimizing logistical challenges, he said. As these actions take significant capital investment and a long time to accomplish, global companies are employing several solutions that can help in the near term. Some firms are deploying approved payables programs, where a bank funds suppliers upfront, after the invoices are approved, allowing buyers to pay at a later date, Stitt said. “This improves the buyer’s cash flow situation, and also helps the supplier’s cash flow as they receive payments up front,” he said. On the other side of the transaction, U.S. companies can sell receivables to a bank, thereby mitigating some risk.
Truist’s Merchant Engage combines banking and payments in one- delivers a rich, intuitive user experience that shows all of the processing, all of the settlements, all the dispute management in a seamless experience
Truist Financial Corp. has launched a new integrated merchant-services platform called Merchant Engage, aimed at meeting the banking and payment needs of businesses ranging from small enterprises to large merchants. The free service allows Truist clients with both banking and merchant accounts to view all transaction data in one centralized platform. Developed in partnership with London-based fintech Pollinate International Ltd.—marking its U.S. debut—Merchant Engage offers a comprehensive digital experience covering dispute management, new-location onboarding, and transaction processing. According to Chris Noe, Truist’s head of wholesale payments, the bank covers Pollinate’s service fees, making the offering cost-free for users. Pollinate provides customizable modules across the merchant lifecycle, delivering a seamless experience without requiring users to manage processor tie-ins or aggregate data themselves. “The client is able to get a rich, intuitive user experience that shows all of the processing, all of the settlements, all the dispute management, and anything that they would possibly need,” Noe explained. For instance, onboarding a new merchant location can now be done entirely within Merchant Engage, avoiding the need to navigate multiple platforms. While Truist may be first with this level of integration, other banks like U.S. Bank are also expanding their merchant services, such as with April’s launch of U.S. Bank Essentials.