U.S. Bank CEO on how incumbents are winning the next chapter of banking

The Exchange Stage at Money20/20 Las Vegas is typically where the industry’s most vital conversations take place, and this year’s fireside chat on “The Next Chapter in Banking Growth and Innovation” was no exception. Moderated by J.D. Durkin, the discussion with U.S. Bank Chief Executive Officer, Gunjan Kedia, provided a masterclass in how a major American incumbent is not just weathering the technological storm, but positioning itself to thrive in the new, interconnected financial world.

Kedia, a 30-year veteran whose career spans McKinsey, BNY Mellon, and State Street, delivered a clear message to the fintech audiences: Disruption is not to be feared, it’s to be leveraged.

The Art of the ‘How,’ Not the ‘Whether’ for Digital Assets

The central tension in the modern financial services industry revolves around new technologies like blockchain and digital currencies. Kedia was unequivocal, declaring that digital finance “will be with us,” making the conversation about how to integrate it, not whether it will survive.

She identified two profound structural shifts in the industry: a re-examination of the regulatory environment to recognize new bank charters and digital currencies, and the disruptive power of new technology like stablecoins and cryptocurrency.

U.S. Bank’s strategy here is pragmatic, focusing first on what they know: custody and investment.

• Investment Use Case: Kedia noted that digital assets are viewed as a counter-cyclical investment. In this space, the business model is clear. U.S. Bank was one of the first to implement cryptocurrency custody and recently announced a stablecoin custody mandate.
• Payments Use Case: The more complex area is stablecoins as a payment rail, which Kedia warned could bypass the banking system and, in effect, return to a new form of a “barter system”. This new digital barter lacks the institutional safeguards that the current financial system provides for issues like dispute resolution, fraud, and claims. The evolution of market structure thinking remains a key focus for the bank.

The Power of Plural Partnerships: It’s an ‘And’ Story

The relationship between FinTechs and traditional banks is a constant source of debate. Kedia framed the dynamic not as a zero-sum game, but as a synergistic partnership.

She expressed deep respect for new players, who challenge the incumbents on speed, user experience, and pricing. A prime example of this pressure leading to success is Zelle, a bank-owned network that has become the default money movement mechanism in the US, prompted to evolve by external forces.

However, traditional banks bring non-negotiable assets to the table:

1. Trust: Centuries of trust and brand awareness.
2. Security: Vast back-office infrastructure dedicated to safety and security, especially in an age of cyber risk.
3. Scale: Millions of customers and physical infrastructure in the community.

When these two forces combine, Kedia asserted, “customers win” and the overall revenue pie expands through “enormous value” creation.

The Human Touch is Reserved for ‘Moments That Matter’

The conversation delved into the delicate balance between digital investments and the essential human touch in banking. Kedia explained that technology, specifically mobile apps and digital tools have successfully digitized all the “basics,” resulting in enormous convenience for all generations. She offered the insightful example of her 86-year-old father, who is now able to constantly move his money around digitally to find the best rate, showcasing the convenience of digital tools across age demographics.

Today, the role of the person has evolved. When a customer walks into a branch, it is almost always for a “moment that matters”—a non-routine event surrounded by “extreme anxiety or extreme joy”. These moments include:

• Dealing with the death of a family member and accessing accounts.
• Identity theft.
• Seeking financial advice on which loan to pay off first after getting a first job.

Furthermore, Kedia revealed that the bank is leveraging AI to analyze customer questions and call center conversations, helping them truly understand what clients are calling about and allowing them to change the nature of human roles to focus on these high-value interactions.

Economic Headwinds and the AI Investment Divergence

Shifting focus to the broader macro-economy, Kedia noted that the US economy is “quite strong” and “resilient,” supported by very strong consumer and corporate balance sheets.

However, the CEO flagged an unprecedented divergence between two key metrics: consumer sentiment and consumer behavior. While the hard data (balance sheets, spending) remains robust, sentiment is less strong. This is leading CFOs to pause on big capital expenditures, waiting for certainty around the interest rate environment and employment numbers.

Kedia provided a fascinating data point on capital deployment: if you strip out AI-related Capex, the country’s capital expenditure is flat. The current pause is not due to an “idea deficit,” but rather the prevailing uncertainty.

The Future of Money is…

Wrapping up a deep-dive conversation, Kedia was asked to finish the sentence: “The future of money is…”

Her answer serves as a sharp and actionable four-point manifesto for every institution navigating the financial landscape: Personal, secure, fast, educate.

For a bank like U.S. Bank, success in 2030 will be measured simply by having more clients and those clients doing more business, which she said validates the value proposition and the underpinning trust factor.

In short, the next chapter of banking is not about fearing the change brought by FinTech, but embracing it with strategic partnerships, doubling down on the core assets of trust and security, and using technology (like AI) to free up human capacity for what truly matters to the customer. For US and UK financial professionals, this is a clear playbook for blending the legacy with the limitless.