Mohawk Valley Financial Leaders Unite: Historic Banking Forum Addresses AI Lending, Public Banking, and Community Growth

Local banks and credit unions collaborate with state lawmakers on critical financial policy reforms that could reshape banking across Central New York

The Mohawk Valley’s financial community made its voice heard loud and clear on Tuesday, September 9, 2025, as leaders from major banks and credit unions joined state lawmakers for a groundbreaking Financial Institutions Forum in Utica. The gathering brought together some of the region’s most influential financial institutions to tackle everything from artificial intelligence in lending to public banking initiatives that could transform how communities access financial services.

Assemblywoman Marianne Buttenschon, who chairs the Assembly Small Business Committee, hosted the forum alongside Assemblyman Clyde Vanel, Chair of the Assembly Committee on Banks. The event took place at the Utica State Office Building, where representatives from 14 financial organizations engaged in frank discussions about the future of banking in New York State.

A Who’s Who of Mohawk Valley Banking

The forum drew an impressive lineup of regional financial powerhouses. Major banks including NBT Bank, Community Bank N.A., KeyBank, and Bank of Utica sent senior representatives, while credit unions like GPO Federal Credit Union, AmeriCU Credit Union, and Mohawk Valley Federal Credit Union also participated.

The presence of industry associations added significant weight to the discussions. Both the New York Credit Union Association (NYCUA) and the Independent Bankers Association of New York State (IBNYS) contributed their expertise, ensuring that both credit union and community banking perspectives were thoroughly represented.

“Our banks and credit unions are not only the backbone of our local economy; they are trusted partners for families, farmers, and small businesses,” Buttenschon explained. “I’m deeply grateful to Chairman Vanel for joining us today and for his dedication to ensuring that state policies reflect the needs of communities like ours.”

AI in Banking: Balancing Innovation with Consumer Protection

One of the forum’s most forward-looking discussions centered on artificial intelligence in lending decisions. Assembly Bill A.773-B, sponsored by Assemblyman Rosenthal and Senator Sanders, addresses the growing use of automated lending decision-making tools by banks.

The legislation would allow loan applicants to consent to or opt out of AI-driven lending decisions. This represents a significant consumer protection measure as banks increasingly rely on algorithmic decision-making processes that can sometimes perpetuate bias or create unfair lending practices.

The discussion highlighted a key tension in modern banking: how to embrace technological innovation while protecting consumers and ensuring fair access to credit. Local banking leaders shared their experiences with AI implementation and expressed both enthusiasm for the technology’s efficiency gains and concerns about regulatory compliance.

Public Banking: A Controversial Path Forward

Perhaps no topic generated more debate than the proposed New York Public Banking Act (A.6268/S.1992). This legislation would authorize municipal and local governments to form and control public banks, potentially creating new competition for traditional banking institutions.

The bill’s stated goals include:

• Achieving cost savings for local governments
• Strengthening local economies
• Supporting community economic development
• Addressing infrastructure and housing needs

While supporters argue that public banks could keep tax dollars circulating within local communities rather than flowing to Wall Street institutions, traditional banks have expressed concerns about unfair competition and potential taxpayer risks.

The forum provided a rare opportunity for these competing perspectives to engage directly, with banking leaders able to voice their concerns while lawmakers explained the policy rationale behind the legislation.

Banking Development Districts: Expanding Financial Access

The forum also addressed Banking Development Districts (BDDs), a program designed to increase banking services in underserved areas. Multiple bills are working their way through the legislature to strengthen and expand this initiative:

• A.421/S.812: Already signed by Governor Hochul, this measure makes establishing branches in BDDs a factor in community reinvestment assessments
• A.5167/S.2027: Creates a working group to assess the BDD program’s effectiveness
• A.8705/S.8199: Directs the Department of Financial Services to study and improve the program
• S.8357: Allows banks to use deposit placement programs within BDDs

These measures reflect a growing recognition that many communities, particularly in rural areas like parts of the Mohawk Valley, face challenges accessing basic banking services. The legislation aims to incentivize banks to serve these markets while providing regulatory flexibility to make such expansion economically viable.

Cryptocurrency and the GENIUS Act

The forum also tackled the implications of the federal GENIUS Act, signed by President Trump on July 18, 2025. This legislation addresses how financial institutions will interact with stablecoins and other cryptocurrency products.

For community banks and credit unions, cryptocurrency represents both an opportunity and a challenge. While digital assets could offer new revenue streams and services for customers, they also create compliance burdens and require significant technological investments.

Local financial institutions shared their varied approaches to cryptocurrency, from those actively exploring digital asset services to others taking a wait-and-see approach until regulatory frameworks become clearer.

Small Business Support: The Heart of Community Banking

As Chair of the Assembly Small Business Committee, Buttenschon made sure small business lending received significant attention. The discussion focused on how banks and credit unions can better serve their communities, particularly in supporting the entrepreneurs and small businesses that drive the Mohawk Valley economy.

Credit union representatives highlighted their member-owned structure as an advantage in serving local businesses, while community banks emphasized their deep community ties and local decision-making authority. Both sectors stressed their commitment to relationship-based lending that takes into account local economic conditions and borrower circumstances that might not show up in automated underwriting systems.

Looking Forward: Collaboration Over Competition

Assemblyman Vanel emphasized the collaborative spirit that made the forum successful: “This forum showed the importance of collaboration between financial institutions, community leaders, and lawmakers. We must make sure that financial institutions, both on the local, state, and national level have the tools to better serve families and businesses both large and small.”

The forum represents a broader trend toward stakeholder engagement in policy-making. Rather than developing banking regulations in Albany without input from the institutions and communities they affect, lawmakers are increasingly seeking direct feedback from industry professionals and local leaders.

Policy Impact Beyond the Mohawk Valley

While the forum focused on local concerns, its implications extend statewide. The feedback gathered from Mohawk Valley financial institutions will inform how state lawmakers approach banking regulation, consumer protection, and economic development policy.

The discussions highlighted unique challenges facing upstate communities: rural banking access, agricultural lending needs, and the economic development challenges that come with an aging population and evolving job market. These insights help ensure that state banking policy doesn’t just reflect the needs of New York City’s financial district but also serves communities across the state.

The Path Ahead

Buttenschon committed to continuing this collaborative approach: “Strong financial institutions mean stronger communities. I will continue working closely with my colleagues in Albany, including Chairman Vanel, to ensure our local banks have the tools they need to grow, innovate, and serve the people of the Mohawk Valley.”

The success of this forum suggests we may see similar gatherings in the future, creating ongoing dialogue between financial institutions and policymakers. As banking continues to evolve with new technologies, changing consumer expectations, and shifting regulatory landscapes, these conversations become increasingly vital.

For Mohawk Valley residents, the forum’s outcomes could affect everything from mortgage availability to small business loans to access to basic banking services. The collaborative approach demonstrated here offers hope that policy changes will reflect real-world needs rather than just theoretical considerations.

The financial institutions that participated showed their commitment to community engagement by investing time in these policy discussions. Their willingness to work with lawmakers rather than simply oppose regulation suggests a mature approach to industry challenges that could benefit everyone involved.

What do you think about these banking policy changes? How might they affect your local community? Share your thoughts in the comments below and don’t forget to share this story with others who care about the future of banking in Central New York.