EXCLUSIVE–Fintech startups are definitely driving change within the financial service industry–no surprise there–but more than providing some necessary technical upgrades, fintech has established such a place in the industry that is now driving what customers expect from their banks.

This is according to Peggy Mangot, senior vice president, innovation, for Wells Fargo, who spoke on the topic during the “Founders Debate on the Strategy for Future Banking” panel at Bank Innovation 2018. The event is currently taking place in San Francisco.

“Fintech is making a difference in banking. They are setting the expectations customers have with their own bank,” Mangot said on the panel. Banks, said Mangot, are responding with a higher focus on innovation: the Wells Fargo team has a twice-yearly summit in which new ideas and technologies are discussed.

The place of the larger technology companies in banking–most notably Amazon, as the e-commerce giant has recently announced some news in the area–was also discussed during the panel.

Financial institutions should keep a watch on the e-commerce company, Lindsay Holden co-founder and chief executive officer for personal finance app Long Game, said on the panel.

“20-to-30 year-olds have a lot of mistrust of banks out there… and they love Amazon,” Holden said.

Banks should be prepared for some of these technologies to take longer than others, however: while tech like artificial intelligence and blockchain will certainly have its place in the future of banking, banks shouldn’t get sucked too deeply into the “hype cycle,” others on the panel like Ken Kruszka, CEO and founder of payments provider Snapcheck, noted.

“‘We’ve been through three waves of AI hype– to go back to the hype cycle, we’re headed for the ‘trough of disillusionment soon,” Kruszka said on the panel, expressing similar thoughts on blockchain. “AI is the R&D of computer science: when we don’t know what to call something, we call it AI.”

Moreover, even as fintechs bring new technology into the banking ecosystem, it should be noted that the main purpose of a banking institution will essentially remain the same, said Kruszka: a bank “takes deposits and issues loans,” he said on the panel.

Stay tuned for more news from Bank Innovation 2018! Follow our conference hashtag on Twitter, #GOFintech, for updates.