Before chasing AI, Bank of America wants banks to fix their data first

Bank of America is sounding a cautionary note for the financial services industry: your AI tools are only as good as the data feeding them. For retailers and service providers, this means the 'smart' financing tools you use—from instant credit approvals to personalized payment offers—rely on clean, organized data architecture rather than just flashy software. The bank argues that many financial institutions are rushing to adopt AI models without first fixing fragmented or outdated data systems. This gap can lead to unreliable credit decisions or poor customer experiences. For your business, this shift signals a change in how lenders will evaluate risk and offer terms. As banks prioritize 'data hygiene,' expect the financing partners you work with to become more rigorous about the quality of information they collect at the point of sale. The goal isn't just to have AI, but to ensure that AI can be trusted to make accurate, real-time lending decisions for your customers. If a lender's data is messy, their approval rates might fluctuate or their fraud detection might overreact, directly impacting your conversion rates.

Source: Tearsheet

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