A mutual bank that has been in operation for 201 years has recently established an AI Center of Excellence in collaboration with a startup partner.
Liberty Bank has unveiled an AI Center of Excellence in collaboration with Flare AI, aimed at implementing secure and compliant AI solutions across personal, commercial, and digital banking sectors. Based in Middletown, Connecticut, Liberty Bank, which has been in operation for 201 years, introduced this center as a focal point for its AI strategy, governance, and execution.
The partnership prioritizes outcomes over software licenses, as explained by David Hadd, Liberty Bank’s head of Business Transformation. He stated, “Flare’s responsibility is to design, build, and assist in deploying AI systems for Liberty Bank, significantly shortening what was once a multi-year technological development to just weeks, while ensuring the necessary security, compliance, and governance controls that regulated institutions demand.”
With assets exceeding $9 billion, Liberty Bank operates 51 retail banking offices in Connecticut and Massachusetts and employs over 900 staff members. As one of the oldest and largest mutual banks in the United States, the bank plans to focus initially on implementing secure AI systems that enhance productivity and customer experience by automating intricate core processes and developing reusable AI capabilities.
David Glidden, President and CEO of Liberty Bank, remarked, “For a bank of our size, ambition has never been the issue; it’s been the duration required to translate strategy into action.” The bank aims for the AI Center of Excellence to have a significant positive influence on customer experience, operational efficiency, and overall growth. Large banks have indicated that scaling AI in production can be more costly and error-prone than expected from pilot programs, underscoring the importance of governance and quality control from the outset.
Scott Killoh, CEO of Flare AI, noted that the company adopts a distinct approach compared to platform vendors. He mentioned, “Many banks are sold AI platforms and left to sort out the rest on their own. We collaborate with institutions to provide functioning AI systems that are secure, compliant, and customized to their specific needs.” Flare AI’s new President and Chief Strategy Officer, David Mitchell, previously held an executive position at Liberty Bank for six years, which enhances the partnership’s familiarity with the institution.
This announcement signifies a broader trend in how regulated sectors are integrating AI, transitioning from merely experimental initiatives like chatbots to structured deployments that incorporate built-in audit trails and compliance features. For community banks vying with much larger institutions for technological advantages, the speed of deployment is as critical as the technology itself.
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A mutual bank that has been in operation for 201 years has recently established an AI Center of Excellence in collaboration with a startup partner.
Liberty Bank, the oldest mutual bank in the United States with assets totaling $9 billion, has established an AI Center of Excellence in collaboration with enterprise AI partner Flare AI.
