This bank used an AI clone on its earnings call; plans to automate lending, onboarding

In a groundbreaking move, Customers Bank, based in Pennsylvania, has taken a significant step toward integrating artificial intelligence into its core banking processes. During the recent first-quarter earnings call, CEO Sam Sidhu surprised attendees by announcing that part of his speech was delivered by an AI-generated voice clone. This unprecedented approach marks a potential first for public company earnings discussions. As the bank, valued at $25.9 billion, deepens its commitment to AI, it has entered into a multi-year collaboration with OpenAI. This partnership aims to embed engineers within the bank's operations to streamline crucial tasks such as lending and client onboarding. Sidhu envisions AI as more than just a productivity enhancer; he sees it as a pivotal factor in boosting financial performance. The initiative aims to improve the bank's efficiency ratio from approximately 49% to the low 40s, potentially yielding positive returns as early as next year. The structure of this partnership emphasizes co-development instead of a conventional vendor-client relationship. Sidhu stated, "We’re going to be co-creating enterprise solutions they could potentially sell to other banks in the future." The overarching goal is to create an end-to-end, automated workflow for lending, deposits, and payments. For OpenAI, this collaboration represents an opportunity to implement real-world solutions within a regulated banking context. Denise Dresser, a representative from OpenAI, expressed pride in supporting Customers Bank as it transitions to a more intelligent operational model that enhances employee capabilities and customer service, setting a new benchmark for regional banking. The bank plans to deploy AI agents across various functions, including lending and payments, within the next six to twelve months. If successful, the timeline for closing a commercial loan could be drastically reduced from 30-45 days to just seven days, encompassing all necessary processes such as underwriting and document collection. Additionally, the onboarding time for complex commercial clients, which typically takes over a day, may shrink to under 20 minutes through the use of conversational AI and automated document handling. Sidhu explained that with autonomous agents operating as digital workers, the bank can enhance efficiency by ensuring these agents are available around the clock. Customers Bank has already begun internal AI experimentation, with around half of its software code now being generated using AI tools, resulting in a savings of 28,000 work hours—equivalent to avoiding the hiring of 15 full-time employees. "This is an opportunity for us to potentially slow that hiring and generate more revenue per employee," Sidhu noted. Despite competing against industry giants like JPMorgan Chase, Sidhu believes smaller banks like Customers Bank can adopt AI solutions more swiftly due to their simpler structures and lighter regulatory burdens. He remarked that regulators are keen for regional banks to remain competitive with larger institutions. Looking ahead, the bank is exploring new AI-driven business lines that were previously too costly to implement, relying on smaller teams to manage automated systems that replace tasks once handled by larger workforces. This enhanced partnership builds on an earlier relationship established in 2023, now featuring OpenAI engineers embedded directly into the bank’s operations. Sidhu concluded, "It’s going to benefit our investors. It’s going to benefit our customers. Our regulators will hopefully also be happier over time, because they’re going to see us reducing risk as well."