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Online EducationABA Banking Journal: ABA’s Ybarra: Stablecoin regulation must not undermine the banking systemMay 29, 2025
Establishing a robust regulatory framework for stablecoin that integrates with, rather than disintermediates, the banking industry is critical to ensure financial stability and the ongoing vibrancy of the U.S. economy, American Bankers Association SVP for Innovation and Strategy Brooke Ybarra writes in a new opinion column for American Banker. The GENIUS Act in the Senate would establish a regulatory framework for payment stablecoin. Ybarra writes that whatever framework is adopted, “it should not interrupt the flywheel for credit creation by incentivizing value to be held in the form of payment stablecoin rather than bank deposits.” One means of accomplishing this would be to prohibit the use of financial inducements on payment stablecoin, such as PayPal recently proposed by offering a 3.7% reward on balances held in PayPal and Venmo wallets. Another solution is to require that some stablecoin reserves be held at U.S. banks, Ybarra writes. “Bank deposits must be a practical option for payment stablecoin reserves, and regulators must allow all banks to accept these reserves as deposits.” “If Congress puts in place these reasonable guardrails, then it’s safe to assume that banks will participate in the stablecoin marketplace, and Americans will be able to safely enjoy the potential benefits,” Ybarra writes. “But until that regulatory perimeter is established, banks should tread carefully — and so should everyone else, for the sake of our banking system and the broader economy.” Back to TopABA Banking Journal: ABA seeks repeal of Reg II debit card interchange price control ruleMay 29, 2025 In response to a Trump administration effort to ease regulation, the American Bankers Association is urging officials to rescind the regulation implementing the Dodd-Frank Act’s restrictions on debit card interchange fees. Short of that, ABA suggested that the Federal Reserve withdraw a 2023 proposed rule regarding interchange fee caps and rescind a 2022 final rule regarding routing and exclusivity restrictions. President Trump has directed the Department of Justice’s Antitrust Division to identify federal laws and regulations that undermine free-market competition and harm consumers and businesses, with the goal of possibly eliminating those regulations. Regulation II implements the Dodd-Frank Act’s Durbin Amendment through “unnecessary barriers to competition by imposing price caps that are not required by statute, forces card issuers to enter into business relationships that they otherwise would not and exceeds the board’s authority with respect to net compensation, in a manner that undermines free market competition,” ABA said in a letter to the DOJ. The 2023 proposed rule establishes a price cap that would allow only 66% of covered issuers to recover just a subset of the costs they incur by providing debit card payment services, ABA said. The ABA also notes that “courts have repeatedly held that price-control regulations that fail to allow a reasonable rate of return are unconstitutional”. The 2022 rule imposed new mandates that require issuers to undertake expensive and time-consuming efforts to change their core network infrastructure, the association added. Both represent “unjust interference in the market and are not required under statute.” Meanwhile, consumers were left worse off as “Regulation II led to a significant reduction in the availability of no-fee checking accounts and debit reward products. The Durbin Amendment neither requires nor supports this anticompetitive result.” Fed research indicates that merchants failed to pass the savings along to consumers as a result of the Reg II rule. Back to TopABA Banking Journal: Survey: Majority of financial institutions deploying generative AIMay 22, 2025
While banks have long employed artificial intelligence tools, a new survey shows that a majority of banks globally have either deployed or are in the process of deploying generative AI tools. According to a survey of more than 400 banks worldwide conducted by Hanover Research for bank technology company Temenos, 11% of financial institutions have already implemented genAI, while an additional 43% are in the process of doing so. Larger banks were more likely to have genAI live or in the pipeline; 79% of banks with over $250 billion in assets and 75% of banks with $50-250 billion in assets reported this. About 4 in 10 financial institutions with less than $10 billion in assets said the same. Of banks that are implementing genAI, 64% said it was primarily to improve customer experience, 58% said it was to enhance their customer service functions and 55% said it was to improve internal productivity. Who oversees the AIs?Forty-two of respondents said that had a dedicated group within the bank overseeing genAI implementation. Banks with a dedicated group were most likely to designate the chief information officer or the chief security officer as the individual responsible for genAI adoption, although 8% of financial institutions said they had created a role of “chief AI officer” to participate in the governance of genAI — although none of these were in the United States. Virtually all banks reported that it took less than 12 months to obtain internal approval for genAI projects, “which is pretty fast for the banking sector,” noted Temenos chief marketing officer Isabelle Guis, speaking at the Temenos Community Forum in Madrid. Bankers’ willingness to adopt genAI comes in light of anxiety about falling behind the competition. Eight in 10 said that banks that do not implement AI will fall behind their competitors, while 6 in 10 said they expect human employees to work alongside AI employees as so-called agentic AI tools are expanded. Banks to increase tech spend in key categoriesRespondents reported that they plan to expand their investment in several key technology areas, including customer protection (84%), efficiency improvements (81%), systems integration (75%) and data analytics (73%). “We really expected banks to be more conservative, to be honest, based on the climate,” said Guis in an interview. “What was surprising is that, actually, their planned investment levels are set to increase.” Guis noted that 57% of banks reported plans to spend to increase their agility in responding to market changes. “U.S. banks were monitoring their customers and how they responded to the geopolitical change, keeping it in mind to help them,” she explained. “They’re expecting the customers to be more conservative in their investments. They’re expecting some behavior of the customers to change, and they want to be ready with new offerings.” Bank Beat: AI adoption requires personalization, planningMay 27, 2025 / Sam Wilmes
Udell, senior vice president of product marketing and innovation at Plano, Texas-based fintech Marquis, advised bank owners to assume they have no idea of what AI can do and to read any AI-produced materials before releasing the content. Udell said banks with current policies and procedures already have the groundwork in place to use AI. Udell has 25 years of financial experience, including 14 with Lake Ridge Bank in Madison, Wis. “The language of AI will drive transformational results,” Udell added. Banks, to ensure regulatory acceptance of AI use, should update and apply their current policies and procedures; ensure AI solutions meet their encryption and privacy expectations; and apply the same guidelines and guardrails they already have, Udell said. “Trust your people,” he added. Banks should write an AI usage policy and create a pilot team to move the emerging technology forward. Udell said banks can create a training plan using AI by asking for specifics; creating a repeatable template; refining their sample; and having a write-in section. AI is never the complete solution for a bank, Udell said, with humans playing a part in each step of the process through fact checking and reviewing for bias. He sees AI as a way to focus on prompts and everyday tasks while keeping humans in the loop. A passionate advocate for the use of AI, Udell said the emerging technology enables the collective knowledge of the internet to be tailored to the needs of an individual customer. AI platforms such as ChatGPT can make strong employees even better, Udell said, and can be used to help a bank through a challenging employee situation and write job descriptions. The emerging technology can be used to apply common assessments such as Myers-Briggs and StrengthsFinder while also writing job descriptions. Udell’s discussion came as regulators become more open to banks using AI. The bipartisan House Taskforce on AI outlined the risks and opportunities it sees from the emerging technology late last year, while calling for the United States to be competitive in the sector. The National Institute of Standards and Technology has produced guidelines to help organizations manage AI-related risks. Full ArticleBack to Top |
Bankers should treat artificial intelligence similarly to a person, said Ben Udell earlier this month during the Bank Holding Company Association spring seminar in Edina, Minn. 
The SD Bankers Foundation offers scholarships in conjunction with member banks. The Foundation's member bank scholarship programming was modified to strive to encourage and support students who exhibit a strong desire to pursue a career in banking. In 2025, each SDBA member bank has been given the opportunity to apply for $4,000 to be awarded as scholarships in conjunction with the Foundation. 
The South Dakota Bank Directory provides detailed information on all South Dakota banks including addresses, telephone numbers, important contact names and additional pertinent information. The directory also contains information on the SDBA, banking associations, regulatory agencies, endorsed vendors, associate members and South Dakota officials.
