KC Fed’s Future of Banking: progress through innovation and trust

“The future is already here,” Kansas City Federal Reserve President and CEO Jeff Schmid told those attending the Bank’s Future of Banking conference May 14.

But what does that future look like, and what’s shaping it?

Answering those questions—through conversation, collaboration and a closer look at the forces transforming the financial industry—is the annual event’s purpose. The conference, sponsored by the Kansas City Fed, brings together bankers, policymakers, researchers and industry leaders to discuss trends and innovations across banking, financial services and the broader economy.

This year’s conference theme, “Powering Progress, Protecting Trust,” focused on topics including artificial intelligence, digital assets, fraud prevention and the future of community banking. Sessions explored how banks are adapting to rapid technological change while continuing to meet the needs of businesses, consumers and local communities.

Many of these evolving technologies, Schmid noted, are “already proven, operational and creating opportunities for early adopters.”

Schmid’s remarks also reinforced one of the conference’s central themes: that innovation and trust can coexist, particularly for community institutions navigating rapid technological change.

Even as innovation, technology and evolving customer expectations change the way financial institutions operate, he said, trust, stability and community relationships remain crucial and must be reinforced.

The modern payments infrastructure more banks are adopting is not replacing relationship banking but instead focuses on “further deliver[ing] on community banking’s promise and potential,” Schmid said.

The conference featured a robust agenda throughout the day. Following opening remarks from Tara Humston, executive vice president of the Supervision and Risk Management Division at the Kansas City Fed, sessions explored navigating the digital assets landscape, fraud prevention and regulatory trends affecting payments innovation, and embracing artificial intelligence in banking operations and regulatory oversight. Attendees also heard a special video message from Federal Reserve Vice Chair for Supervision Michelle W. Bowman during the lunch keynote. The final session examined the future of community banking as stablecoins and generative AI reshape the industry.

With its Future of Banking conference, the Kansas City Fed demonstrates its broader commitment to outreach and engagement across the Tenth Federal Reserve District and nationally. The event creates space for industry professionals from a variety of backgrounds and institution sizes to exchange perspectives, share insights and better understand the evolving opportunities and challenges in financial services.