CBA’s Johnson at Reuters NEXT: Banks Are “Sprinting” Ahead on Innovation for Consumers

NEW YORK, N.Y. - Consumer Bankers Association (CBA) President and CEO Lindsey Johnson this week joined the Reuters NEXT Conference's Finance and Markets Stage for a panel discussion focused on the health of the consumer with Citizens Financial Group President (and CBA Board Immediate Past Chair) Brendan Coughlin, Barclays U.S. Consumer Bank Chief Product Officer Sean Murray, and moderator Pavni Mittal.

During their conversation, Johnson shared the ways America's leading banks are deploying generative and agentic artificial intelligence (AI) and the need to balance innovation and smart regulation in the broader financial services market - not just to banks - to achieve resilience and effective consumer protection, all while fostering the most innovative, competitive, and robust financial system in the world. Below are key excerpts from Johnson delivered on the panel.

On the need for a regulatory environment that fosters innovation while ensuring consumers are protected:

"There's such a blurring of commerce and banking, especially now, technology firms, others coming into this space, they operate under an entirely different set of standards than banks […] Banks are out there competing and there are going to be [banks] who are able to deliver better for their consumers based on the offerings that they provide using the technology. But we are also not operating in the same environment as many of the other companies on the outside. We are not a Sam Altman that can go out and say 'things are going to break, we're going to make big mistakes, people may get hurt, we'll fix it, we'll move on.' Banks can't operate in that environment. We have to do it in a way that's completely compliant in the regulatory contours that we operate in."

On the need to tailor regulations for the evolving AI landscape:

"As we think about things like agentic AI, we are constantly looking at the world around us and saying, okay, what are the frameworks that exist that work and what needs to be updated? Model risk management for banks is a framework that works. And so we have to adhere to it, but Apple, who offers a buy now, pay later product, probably doesn't have to apply to the same model risk management. We need to have a refresh of that, and it's a good place for the CFPB to focus, is in those different areas."

On the importance of balancing innovation and consumer protections as it relates to emerging technologies:

"Regulation E that implements the Electronic Funds Transfer Act is a great example of [...] very clear rules about [liability]. What happens when we have bots doing it for us? […]This is not a hypothetical, right? Customers are going to have bots identifying, negotiating, and buying on behalf of the consumer. Where is the consumer going to look when something happens or something goes wrong? Probably their bank. And the rules right now are not really set up for that."

On the potential for AI to benefit consumers' financial health:

"When we think about the promise of generative AI and agentic AI […] People have an ability to learn like they've never been able to before. Think about that and how you can learn about student loans, how you can learn about buying a house, how you can learn about all these really complex transactions, and banks can enable that. The other piece is agentic AI […] That is transformative [...] And the banks are moving - and sprinting quite candidly - to make sure that their customers have that those capabilities in their pocket."

On the importance of reforming the Consumer Financial Protection Bureau (CFPB) to ensure it is credible, durable, and stable:

"[The CFPB's] UDAAP authority, which is an unfair, deceptive abusive act or practice, it is unique to the CFPB - and somewhat undefined. It's a thing that sounds very arcane, but it matters a lot because if you can decide what is abusive and what's not abusive just depending on your own opinion, that creates a lot of uncertainty. I think a commission structure instead of one politically appointed director would help balance the agency. So, I think there are some pretty common sense things that Republicans and Democrats could legislatively change to make it more effective as an agency."

About Reuters NEXT Conference

Reuters NEXT is the outlet's flagship live journalism event that convenes international business leaders and policymakers.

Curated with Reuters' award-winning newsroom, the conference speaks to global policymakers, business leaders, and forward thinkers to tackle the greatest challenges and opportunities facing society, business, and the world at large.

Over two days, hosted on two stages, Reuters NEXT examines the big issues from different perspectives, fueled by passion, experience, and expertise because building a better tomorrow begins with a clearer understanding of today.

Other featured speakers at Reuters NEXT 2025 included:

• Joseph Lavorgna, Counselor to the U.S. Treasury Secretary;
• Rick Wurster, Charles Schwab CEO;
• Marc Baigneres, JPMorgan Global Co-Head of Investment Grade Finance;
• And more

Johnson previously participated in the Reuters NEXT Conference in 2023.