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Speaker 1: Cash flow management. It's not always the sexiest, but it's

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Speaker 1: important and actually AI has a role in terms of

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Speaker 1: the sol here. JP Morgan's cashflow management tool that runs

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Speaker 1: on artificial intelligence help some of its corporate customers get

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Speaker 1: their slash manual work. But almost ninety percent since launching

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Speaker 1: about a year ago, JP Morgan's wholesale payments unit now

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Speaker 1: has about twenty five hundred clients using the product. And

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Speaker 1: this follows other key banks, other lenders that have been

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Speaker 1: stepping up their use of artificial intelligence with the aim

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Speaker 1: of guess what, lifting productivity, reducing cost.

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Speaker 2: Said.

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Speaker 3: One of those banks is Citizens. Let's talk more about

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Speaker 3: that with Bruce vansaw On, chair and CEO Citizens Financial Group,

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Speaker 3: who's in town for the Citizens j MP Tech conference

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Speaker 3: that kicks off today in San Francisco. So, JP Morgan

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Speaker 3: has this idea that they wanted to add a billion

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Speaker 3: dollars of value and then they upgraded it to one

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Speaker 3: point five billion this year because of the work they're

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Speaker 3: doing in AI. Do you have a similar goal in

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Speaker 3: house that you're working on.

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Speaker 2: Well, maybe there's a less one, less zero on some

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Speaker 2: of these numbers versus them size wise, but clearly that

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Speaker 2: we have a similar product called cash Flow Essentials, which

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Speaker 2: helps small business forecasts their cash flows, and we're rolling

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Speaker 2: that out this year and we have great expectations for it.

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Speaker 3: You come to town three years after to basically getting

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Speaker 3: your tech vertical set up through JMP. Is there one

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Speaker 3: clear ambition you have for this week that you think

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Speaker 3: you know in the conversations you'll have, and I know

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Speaker 3: these kinds of events, there's a bit of deal making

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Speaker 3: that goes on in the corridors as well.

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Speaker 2: Absolutely so. We have well over one hundred companies presenting,

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Speaker 2: both private companies and public companies. We have several hundred

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Speaker 2: investors attending, So there's a lot of buzz about this conference,

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Speaker 2: and I think it's staged at a very good time

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Speaker 2: where the markets are starting to look more promising. We're

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Speaker 2: seeing some green shoots around IPOs, which is terrific, and

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Speaker 2: I think just looking at the US economy and how

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Speaker 2: tech is powering all industries and how AI has huge

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Speaker 2: potential going forward, it's a really good time to have

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Speaker 2: people get together and exchange their thoughts on that.

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Speaker 3: Let's jump in on the IPO situation then read it

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Speaker 3: is an important one for you. It's one that we're

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Speaker 3: talking a lot about on the show at the moment.

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Speaker 3: Just explain how that came about.

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Speaker 2: Well, I think we had a long relationship with them,

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Speaker 2: and so we're going to be one of the co

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Speaker 2: managers on the transaction, and so they haven't filed yet,

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Speaker 2: but I think there's a huge amount of interest. It's

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Speaker 2: a great company.

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Speaker 1: Let's talk about whether or not that then spurs more

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Speaker 1: green shoots. As you said, you can't have just one

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Speaker 1: deal for green shoots in plural. Are we likely to

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Speaker 1: see a reopening because at the end of twenty twenty three, look,

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Speaker 1: I'm now really outperforming where it originally listed at. But

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Speaker 1: instacart queries over that one. Klave Yo has done well.

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Speaker 1: But we all thought this was the reopening and then

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Speaker 1: it shut again.

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Speaker 2: Yeah, it's been it's required some patients the last couple

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Speaker 2: of years. So when we acquired JMP, it was the

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Speaker 2: fourth quarter of twenty one and the markets were red

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Speaker 2: hot at that point, and so you know, as rates

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Speaker 2: went up and the economy wobbled a little bit, I

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Speaker 2: think that basically cut the interest a little bit in IPOs.

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Speaker 2: But again, I think this year is the year when

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Speaker 2: we're going to see a breakthrough.

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Speaker 1: Do the breakthroughs have to talk up artificial intelligence, the

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Speaker 1: data that can be leaned on, for example within Reddit,

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Speaker 1: the areas of expertise that they're in different adjacent industry groups.

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Speaker 2: I think it can be broad. I think AI is

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Speaker 2: certainly top of mind for the market, but there's plenty

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Speaker 2: of great companies around security, different technology services that I

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Speaker 2: think also it's going to see a lot of growth.

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Speaker 2: So that's what the market ultimately focuses on, is what's

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Speaker 2: the growth trajectory, And so I think that extends beyond

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Speaker 2: just AI.

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Speaker 1: And let's talk about your growth trajectory with citizens financial

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Speaker 1: and ultimately how the market is supporting other regional lenders

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Speaker 1: and banks such as yourself, because it is but a

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Speaker 1: year almost ago that we were in the CrOx of

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Speaker 1: the anxiety when it came to regional lenders here in

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Speaker 1: the United States. The explosion is Silicon Valley Bank and

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Speaker 1: ultimately some of the other spillover effects. Yourself managed to

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Speaker 1: whether that storm had different business models in place, But

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Speaker 1: your share price is still under pressure, and there's still

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Speaker 1: anxiety around commercial real estate, for example, which we see

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Speaker 1: front and center with New York Community Bank Corps. How

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Speaker 1: are you seeing love green shoots, appreciation of your business

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Speaker 1: at the moment.

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Speaker 2: Yeah, So I think last year was a challenging year

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Speaker 2: for sure, with the idiosyncratic bank failures. Things have stabilized

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Speaker 2: since then. Certainly the deposit position is very strong. We

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Speaker 2: have a very strong capital position. So last year we

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Speaker 2: spent a lot of time focused on defense and making

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Speaker 2: sure our balance sheet was solid, put away plenty of

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Speaker 2: reserves for areas like real estate, which we think those

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Speaker 2: losses will be manageable for us. But you know, we

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Speaker 2: always talk about you can't just win playing defense, you

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Speaker 2: got to play offense as well. So we have some

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Speaker 2: great initiatives. We have the Citizens Private Bank, where we

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Speaker 2: lifted out a bunch of folks from JP Morgan. We're

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Speaker 2: committed to this region here in northern California. We have

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Speaker 2: JMP and now we came in over the top with

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Speaker 2: the private bank world class best in breed bankers. So

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Speaker 2: we're connected to the whole innovation economy, the VC world,

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Speaker 2: the PE world, all the folks who are creating lots

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Speaker 2: of wealth here. So excited by that. We also have

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Speaker 2: a big effort going on in New York where we

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Speaker 2: had acquired two bank franchises a couple of years back,

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Speaker 2: and we're making great inroads in that New York market.

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Speaker 2: And then I would say the third thing that we're

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Speaker 2: high on is just our ability to serve private capital

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Speaker 2: around the country. So we built out an M and

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Speaker 2: a capability sponsored coverage capability, and so we're really anticipating

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Speaker 2: when private capital really kicks in. I think you'll start

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Speaker 2: to see more deal flow in Pe. Certainly, our pipelines

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Speaker 2: are looking very strong for the year.

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Speaker 3: The lesson that I learned out of what happened a

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Speaker 3: year ago Silicon Valley Bank is how constant traded the

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Speaker 3: access to working capital was for technology companies SMEs. Essentially,

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Speaker 3: what was your big takeaway? What was the one lesson

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Speaker 3: or permanent change of the last twelve months resulting from

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Speaker 3: that saga.

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Speaker 2: Well, I think people were a bit envious about how

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Speaker 2: Silicon Valley Bank had locked in a lot of that

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Speaker 2: customer base, and First Republic also, So now the demise

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Speaker 2: of both of those banks creates a real opportunity for folks.

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Speaker 2: There's a void there, and so it's all about talent

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Speaker 2: and it's about commitment. It's about strength of offerings and capabilities,

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Speaker 2: and so We're marching right in to help.

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Speaker 1: Fill that void, and you'll be hearing from some of

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Speaker 1: those businesses, those sectors you're shining a light on at

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Speaker 1: your event this week. We thank you so much. Bruce Vanson,

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Speaker 1: Chair CEO, Citizens Financial Group,