Subprime consumers appear increasingly fragile with 90+ days delinquencies rising.

In today's episode of The Banking & Payments Show podcast, we will be discussing the potential risks that AI poses to financial institutions. In the 'Headlines' segment, we will examine an article from BBC.com titled "Could AI Trading Bots Transform the World of Investing," which discusses risk-related issues such as AI bots making financial decisions autonomously. In the 'Rankings' segment, we will rank the 5 AI risk categories that financial institutions must address in terms of importance. Join the conversation as host Rob Rubin chats with analysts Jacob Bourne and Grace Broadbent.

Financial institutions are vying with nonbanks for customers in a sluggish lending market. Updating their marketing, lending, and product strategies can help attract and keep customers, slowing the outflow to nonbank lenders.

Although regulators believe big banks will stay safe, they expect some other lenders will shut down.

Disparities in which groups receive these deals led the Consumer Financial Protection Bureau (CFPB) to ask questions about fair lending practices.

Borrowers struggling with inflation and rising interest rates can pay just the interest on their loans for up to six months—with no implications.