Pathward is rolling out AI tools to drive efficiency and improve its lending functions. 

Microsoft Copilot was introduced six to eight months ago and has driven productivity operational excellence while reducing costs, Chief AI, Data and Analytics Officer Laiq Ahmad told FinAi News.

Copilot is helping the  Sioux Falls, S.D.-based bank with content generation, document summarization, software development, Ahmad said. The bank eventually plans to add more gen AI capabilities and tools. 

Gen AI tool is able to perform intern level activities at Pathward and is not at the level of working as a coworker right now, Ahmad said, adding that over time the tech will become better and will be able to do more tasks accurately. 

The $7 billion bank has deployed the tech for nearly 20% of its organization and 98% of those workers use it, Ahmad said. The bank has 1,128 full-time employees, according to its 10K filing for Pathward’s fiscal fourth quarter, which ended Sept. 30. 

Pathward picked Copilot because it has been using Microsoft’s Outlook and some cloud services, making embedding Copilot in it’s existing workflows fairly easy, Charles Ingram, executive vice president and chief information and operations officer, told FinAi News. 

It’s too early to quantify efficiency gains from the gen AI tools, Ingram said, adding that the bank is measuring gen AI impact “in speed to market and quality of deliverables.” 

“We are seeing a very dramatic and organic adoption of gen AI tools,” Ingram said. 

AI in lending 

Pathward plans to deploy AI in its lending processes, Ahmad said. 

“I talked to a lot of my peers in this space, and everyone kind of goes through the same challenges with LLMs and that explainability,” Ahmed said. “We are a regulated entity and are careful with the tech that we deploy.” 

Every organization sets its own parameters for underwriting capabilities, Ahmad said, adding that these parameters “cannot be generalized through large language models.” 

The bank is close to deploying its AI lending tool but doesn’t have a timeline, Ingram said.  

Pathward recently teamed up with online lending marketplace Upstart to expand its reach, Ingram said, adding that Pathward aims to increase financial inclusion through the partnership. 

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