Fed Governor Barr says financial institutions should use AI and cash-flow data to improve consumer health
• Federal Reserve Governor Michael Barr said on Wednesday that banks and fintech firms are increasingly using transaction-account data, AI-assisted analysis and behavioral science to measure customers’ financial health. • Barr said these tools let institutions move beyond simply expanding access and instead design products and outreach that can produce “measurable improvement” in outcomes for consumers. • The speech matters because it signals continued Fed interest in responsible innovation, data-driven underwriting and consumer protection as lenders adopt more granular, near-real-time metrics.
federalreserve.gov