Michigan Bankers Association: Bank Leaders Gather in Detroit - 2025 Economic and Banking Outlook
Earlier this month, Detroit Shareholders Stuart Best and Dan Best had the opportunity to attend the annual Michigan Bankers Association (MBA) Bank Management and Directors Conference, held at the historic Book Cadillac Hotel in Detroit, MI.
The event brought together banking leaders from across Michigan, along with vendors showcasing the latest innovations and technologies shaping the future of the financial industry. From economic forecasts to discussions on artificial intelligence and digital currency, this year’s conference offered valuable insights into the challenges and opportunities facing today’s financial institutions.
Now, they’re sharing their top takeaways!
Economic Outlook: Slow and Steady Growth Ahead
The Federal Reserve Bank of Chicago presented an economic update tailored to the banking industry, noting that while the recent government shutdown had limited the availability of some current data, several key trends remain clear. Real gross domestic product (GDP) growth strengthened through midyear, supported by resilient consumer spending. Inflation remains elevated—driven in part by tariffs—and the labor market continues to cool as both demand and supply moderate. In Michigan, employment conditions are softer than the national average, though southeastern Michigan’s office vacancy rates remain below the U.S. benchmark.
Looking ahead, the Federal Reserve Bank of Chicago projects that economic growth will continue, buoyed by consumer activity and investments in artificial intelligence and data centers. However, consumer spending is expected to level off over the holidays, and the full impact of tariffs on inflation and imports has yet to be realized. While the Fed has lowered the federal funds rate, both short- and long-term bond yields have been slow to respond—a sign that markets remain cautious.
Technology, Pricing, and the Role of AI
Presentations from vendors such as Abrigo and The CorePoint highlighted the ways artificial intelligence is transforming the banking landscape—from deposit pricing to personalized customer engagement. AI tools are already helping customers secure better rates, make informed investment decisions, and optimize financial management. But with innovation comes risk. Alec Crawford of Artificial Intelligence Risk, Inc. provided an important reminder about the emerging security and compliance challenges tied to AI adoption, urging financial institutions to prepare for evolving regulatory scrutiny.
“New Forms of Money”: Stablecoins and Tokenized Deposits
Rob Blackwell of Intrafi led an insightful discussion on digital assets and their growing influence in mainstream finance. Stablecoins, pegged to stable assets such as the U.S. dollar, offer a way to retain value and facilitate payments without the volatility associated with traditional cryptocurrencies. Tokenized deposits, meanwhile, represent a digital ledger version of standard bank deposits—“crypto without the crypto”—that can be used for everyday payments and savings. As these technologies evolve, banks will need to evaluate how alternative forms of money might coexist with traditional financial systems and regulatory frameworks.
Final Key Takeaways
The conference underscored three central themes shaping the banking sector in 2025 and beyond:
- The U.S. economy remains stable but faces headwinds from inflation and slowing job growth.
- Artificial intelligence is poised to redefine nearly every aspect of banking operations and customer experience.
- Alternative digital currencies, including stablecoins and tokenized deposits, are emerging as legitimate considerations for the future of money.
As the pace of innovation accelerates, financial institutions must balance opportunity with caution—embracing new technologies while maintaining the compliance and security standards that form the foundation of trust in banking. If you would like to learn more about Weltman’s collections solutions, please connect with Stuart and/or Dan at any time.
This blog is not a solicitation for business, and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.
