# Cullen/Frost Bankers: AI strategy

Source: https://www.bankingnewsai.com/banks/frost
Last updated: Oct 25, 2026

*A Texas-only, build-not-buy bank that talks about AI as a way to make its mobile app simpler and its account opening faster, and has kept its own AI claims modest.*

## How is Frost using AI?

Cullen/Frost Bankers, the $53 billion parent of Frost Bank and the largest bank headquartered in San Antonio, operates only in Texas, grows organically by building branches rather than buying banks (about 15 new branches and 150 hires planned for 2026) and applies the same build-over-buy instinct to technology. Its public AI position is customer-experience-led rather than efficiency-led. Jimmy Stead, chief consumer banking and technology officer and a member of the team that created Frost's online and mobile banking, told Banking Dive in January 2025 that after a decade of feature races AI would make banking apps 'smarter, and better, and more customized', letting customers describe what they need in their own words instead of following a bank-defined path. The most concrete numbers come from Frost's digital account-opening overhaul with Blend, disclosed in August 2026: completion rates up from 50% to 80%, manual review down from 15% to 3%, accounts opened in six to seven minutes, a 60% rise in completed digital applications and net promoter score up from 90 to 94, building on a lending partnership since 2020. Frost's re-entered mortgage business ended 2025 with $595 million of originations, 19% above goal, with its mortgage leader crediting integrated software rather than AI as such. The bank earned $170.4 million in the second quarter of 2026 and $169.3 million in the first. On the risk side, an April 2026 ransomware claim by the Everest group, which Frost attributed to a third-party tax-document vendor, illustrates the vendor concentration that regulators' third-party guidance targets. Frost has not disclosed AI spending or a head of AI, and AI was not discussed on its October 2025 or July 2026 earnings calls; open roles include an AI engineer and an AI application-security analyst. The filings add two things. The August 2026 investor presentation lists a 'Contact Center Copilot' and enhanced customer chat among the tools behind a call centre that, as of December 2025, was handling 38% more calls with 14% more staff, alongside a core modernisation now at 66% of tier-one capabilities (40% in the cloud). And the 2025 10-K warns that AI, automation and algorithms 'may have unintended consequences due to their limitations or our failure to use them effectively', and that AI raises cyber-attack and fraud risk. This corrects the page's earlier statement that Frost had disclosed no internal AI tool: the contact-centre copilot is one, used by employees, in line with Stead's January 2025 pledge that Frost would never front a customer conversation with a bot.

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | Frost Bank |
| Ticker | CFR |
| Headquarters | San Antonio, TX |
| Consolidated assets | $53,950 million |
| Federal Reserve rank | 44 |
| Charter | Texas state member bank (Federal Reserve) |

## What AI partnerships and patents does Frost have?

Frost has named no AI lab, cloud provider or chip supplier, and its Contact Center Copilot has no disclosed supplier. A July 2024 trade report named LivePerson for a contact-centre co-pilot. Blend runs its lending and account-opening journeys, and Atomic, Finzly and Plaid supply direct-deposit switching, instant payments and open-finance connections. Searches of Google Patents under 'Frost Bank', 'Frost National Bank' and 'Cullen/Frost Bankers' found two filings assigned to the parent, both from 2017, on authentication and fee waivers; neither concerns AI. Whether Frost uses Blend's Autopilot agent is not public. ([Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm), [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1), [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608200800BIZWIRE_USPRX____20260820_BW158280-1), [Google Patents (USPTO)](https://patents.google.com/patent/US9787689B2/en), [Google Patents (USPTO)](https://patents.google.com/patent/US20170316393A1/en))

| Item | What it is | Status | Date | Sources |
| --- | --- | --- | --- | --- |
| LivePerson | Conversation platform; AI co-pilot summarising calls and prompting contact-centre representatives | In production (as reported) | 2024-07-29 | [Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy) |
| Blend | Digital origination for lending since 2020 and now deposit account opening | In production | 2026-08-18 | [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1) |
| Blend Autopilot | Agentic pre-underwriting system live across Blend lenders; Frost's use not disclosed | Undisclosed | 2026-08-20 | [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608200800BIZWIRE_USPRX____20260820_BW158280-1) |
| Finzly | FedNow and RTP instant-payments platform behind a single payments API | Selected | 2024-06-25 | [FinTech Futures](https://fintechfutures.com/instant-real-time-payments/frost-bank-in-texas-taps-finzly-for-instant-payments), [Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy) |
| Atomic | Direct-deposit switching inside the Frost app | Announced | 2024-04-23 | [Business Wire via FinTech Futures](https://fintechfutures.com/press-releases/frost-bank-improves-customer-experience-with-atomic-direct-deposit-switch) |
| Plaid | Open-finance connections for nearly 400,000 customers (Plaid Exchange) | In production | 2022-02-28 | [Frost Bank](https://frostbank.com/dam/Docs/Newsroom/NewsRelease/FrostBankPartnersWithPlaidToBringOpenFinanceSolutions.pdf) |
| Public cloud | Cloud share of tier-one capabilities rose from 16% (2021) to 40%; provider not named | In production | 2026-08-17 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm) |
| US 9,787,689 B2 | Network authentication of multiple profile accesses from a single remote device (not AI) | Granted | 2017-10-10 | [Google Patents (USPTO)](https://patents.google.com/patent/US9787689B2/en) |
| US 2017/0316393 A1 | Linking financial accounts to a subscription service and waiving select fees (not AI) | Published application (abandoned) | 2017-11-02 | [Google Patents (USPTO)](https://patents.google.com/patent/US20170316393A1/en) |

## Flagship platform: Frost mobile app and Blend digital origination

Frost's consumer technology runs through a mobile app it launched a decade ago and has deliberately kept simple; Jimmy Stead, chief consumer banking and technology officer, expects AI to let customers 'in your own words, tell the app what you need to do'. Account opening and lending run on Blend, first for home equity, mortgage and consumer loans from 2020 and extended to deposits: completion rates rose from 50% to 80%, manual review fell from 15% to 3%, accounts open in six to seven minutes and net promoter score moved from 90 to 94. Blend's own agentic pre-underwriting system, Autopilot, has been in production across its lenders since March 2026, but Frost has not said whether it uses it. Behind the scenes, Frost's August 2026 investor deck credits a 'Contact Center Copilot', enhanced customer chat and call-centre modernisation for handling 38% more calls with 14% more staff, consistent with Stead's line that AI helps employees but never fronts a customer conversation. ([Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/), [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1), [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608200800BIZWIRE_USPRX____20260820_BW158280-1), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm))

## Key points

- AI framed around simplicity: the consumer-technology chief expects AI to reverse a decade of app-feature bloat by letting customers state tasks in plain language.
- Account opening with Blend: completion 50% to 80%, manual review 15% to 3%, six-to-seven-minute opens, NPS 90 to 94, digital completions up 60% (August 2026).
- Build-over-buy in branches and technology: 10 Texas branches opened in 2025, about 15 planned for 2026, no bank acquisitions; the CEO wants to win customers disrupted by rivals' mergers.
- Mortgage re-entry delivered $595 million of 2025 originations, 19% above plan, attributed to integrated systems rather than AI.
- Third-party risk made real: an April 2026 ransomware claim traced to a shared statement-printing and tax-document vendor, not Frost's own systems.
- Employee-side AI, not bots: a 'Contact Center Copilot' and enhanced chat helped the call centre absorb 38% more calls with 14% more staff (as of December 2025); Stead says Frost will not front customer conversations with a bot.
- Filings: the 2025 10-K flags unintended consequences of AI, automation and algorithms, and AI-enabled cyber-attacks and fraud; core modernisation is at 66% of tier-one capabilities, targeting 91% in 2027.
- No disclosed AI budget or AI leader, and no AI remarks on the October 2025 or July 2026 earnings calls; the board's Technology and Cybersecurity Committee is chaired by a former Cloudflare field CTO.
- No named AI, data or information officer: the 2025 10-K says the CIO reports to the chief consumer banking officer and the CISO reports to chief risk officer Carol Severyn, who reports to the CEO; the CIO and CISO brief the board committee quarterly.
- A LivePerson AI co-pilot for contact-centre staff was reported in July 2024 (call summaries, conversation prompts, sentiment analysis); LivePerson cited a 91% customer satisfaction score and sub-60-second response times, and Frost's 2026 investor deck lists a 'Contact Center Copilot' without naming a supplier.
- Fraud was named as the likely first AI use case in July 2024 by Laura Miller, EVP of consumer strategy and digital, who said Frost would wait for regulatory and compliance clarity before using AI in underwriting.
- The 10-K's AI language doubled: 'artificial intelligence' appears twice in the 2024 10-K and four times in the 2025 10-K, which adds AI adoption as a cyber-attack risk and AI as an aid to fraudsters; the Q2 2026 10-Q adds AI to its forward-looking factors for the first time.
- Frost is hiring AI engineers to design agentic, LLM-driven systems (Python, FastAPI, LangChain, vector databases) with duties on AI reliability, bias mitigation and drift detection, while its model-validation team assesses compliance with SR 11-7.
- Frost Investment Services told clients in its March 2026 Form ADV that it makes limited use of AI-based tools for internal research and administration and does not use them for investment decisions, advice or trades.

## Timeline

- Aug 27, 2026 — **Blend 'Ecosystem Expander' award** Blend credits Frost with scaling its platform across four major lines of business; the award went to Katie Keating's consumer products team. ([Business Wire via Yahoo Finance](https://finance.yahoo.com/small-business/articles/blend-honors-seven-customers-best-200000530.html))
- Aug 20, 2026 — **Blend reports agentic Autopilot results across lenders** 50,000-plus live loans since March 2026; Frost's participation undisclosed. ([Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608200800BIZWIRE_USPRX____20260820_BW158280-1))
- Aug 18, 2026 — **Blend account-opening results published** Completion 80%, manual review 3%, NPS 94. ([Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1))
- Aug 17, 2026 — **Investor deck names a contact-centre copilot** Call-centre staffing up 14% and call volume up 38% (as of December 2025), 'facilitated by' call-centre modernisation, a contact-centre copilot and enhanced customer chat; 66% of tier-one capabilities modernised, 40% in the cloud. ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm))
- Jul 30, 2026 — **Q2 2026 call: no discussion of AI** Phil Green and Dan Geddes cover loan growth, expansion and deposits; the transcript contains no reference to AI or technology investment. ([The Motley Fool (earnings call transcript)](https://www.fool.com/earnings/call-transcripts/2026/07/30/cullenfrost-cfr-q2-2026-earnings-call-transcript/))
- Jul 30, 2026 — **Q2 2026 10-Q adds AI to forward-looking risks** The 10-Q lists 'advances in artificial intelligence and quantum computing' among technological changes that could affect results; the Q1 2026 10-Q does not. ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000046/cfr-20260630.htm), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000035/cfr-20260331.htm))
- Jul 30, 2026 — **Second-quarter 2026 results** Net income available to common $170.4 million, $2.70 per share. ([Cullen/Frost Bankers](https://frostbank.com/dam/Docs/Newsroom/NewsRelease/CullenFrostBankersReportsSecondQuarterResults-July302026.pdf))
- May 12, 2026 — **Mortgage unit beats goal with integrated software** $595 million of 2025 originations, 19% above plan. ([American Banker](https://www.americanbanker.com/news/how-ai-is-supporting-bank-mortgage-growth-plans))
- Apr 30, 2026 — **First-quarter 2026 results** Net income available to common $169.3 million. ([Cullen/Frost Bankers](https://frostbank.com/dam/Docs/Newsroom/NewsRelease/CullenFrostBankersReportsFirstQuarterResults-April302026.pdf))
- Apr 23, 2026 — **Class actions follow the vendor breach claim** Two proposed class actions each seek more than $1 million; one estimates about 109,000 people affected; a Frost spokesman says a third-party vendor reported unauthorised access to its own systems and there is no evidence of access to Frost's network. ([San Antonio Express-News via Yahoo Finance](https://finance.yahoo.com/sectors/technology/articles/frost-bank-hit-class-action-193000972.html))
- Apr 22, 2026 — **Ransomware claim attributed to a vendor** Everest claims 250,000 Frost records; bank cites a third-party tax-document vendor. ([American Banker](https://www.americanbanker.com/news/citizens-frost-blame-vendor-after-data-breach-claim))
- Mar 25, 2026 — **Frost Investment Services discloses limited AI use** Form ADV Part 2A says the firm makes limited use of tools that may include AI for internal research and administration, not for investment decisions, advice or trades, with supervisory controls. ([Frost Bank](https://www.frostbank.com/FormADVPart2A))
- Mar 20, 2026 — **Proxy statement sets out technology governance** The Technology and Cybersecurity Committee, chaired by former Cloudflare field CTO John Engates, approves technology and information-security budgets annually and receives quarterly reports from the CIO and CISO; director Linda Rutherford previously led AI and data transformation at Southwest Airlines. ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm))
- Feb 5, 2026 — **2025 10-K: AI's 'unintended consequences'** The risk factors cover AI, automation and algorithms in business processes, AI adoption widening the cyber-attack surface, and AI-enhanced fraud against the bank's controls. ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm))
- Jan 29, 2026 — **Organic Texas growth despite M&A wave** About 15 branches and 150 hires in 2026; CEO targets rivals' disrupted customers. ([Banking Dive](https://www.bankingdive.com/news/frost-bank-texas-growth-mergers-acquisitions-fifth-third-huntington/811110/))
- Jan 28, 2026 — **Board adds two directors; a technology committee member announces retirement** Marsha Shields and Jeffrey Rummel join the board; Dr Chris Avery, a Technology and Cybersecurity Committee member, will retire at the April 29, 2026 annual meeting. ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000007/cfr-20260128.htm), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm))
- Oct 30, 2025 — **Q3 2025 call: technology expense, no AI** The CFO cites higher technology expense among the drivers of a 1.7% linked-quarter rise in noninterest expense; the transcript contains no discussion of AI. ([The Motley Fool (earnings call transcript)](https://www.fool.com/earnings/call-transcripts/2026/02/10/cullen-frost-cfr-q3-2025-earnings-transcript/))
- Feb 6, 2025 — **2024 10-K already warns of AI 'unintended consequences'** Two mentions of artificial intelligence: unintended consequences of AI, automation and algorithms in business processes, and attack techniques that evolve 'as a result of artificial intelligence'. ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926325000017/cfr-20241231.htm))
- Jan 29, 2025 — **'AI will make banking apps simpler'** Stead on the next decade of mobile banking. ([Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/))
- Jul 29, 2024 — **Frost sets out its AI plans to Bank Automation News** Laura Miller says the focus is customer experience, fraud detection is the likely first AI use case and AI underwriting waits for regulatory clarity; a LivePerson co-pilot supports contact-centre staff; Q2 2024 technology spend was $35.9 million, up 8%. ([Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy))
- Jun 25, 2024 — **Finzly chosen for FedNow and RTP** Single instant-payments API covering FedNow and The Clearing House RTP; Finzly says it will support Frost's compliance and fraud-monitoring requirements. ([FinTech Futures](https://fintechfutures.com/instant-real-time-payments/frost-bank-in-texas-taps-finzly-for-instant-payments), [Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy))
- Apr 23, 2024 — **Atomic direct-deposit switching** Frost adds Atomic so customers can move direct deposit to Frost inside its app; Stead is quoted in the announcement. ([Business Wire via FinTech Futures](https://fintechfutures.com/press-releases/frost-bank-improves-customer-experience-with-atomic-direct-deposit-switch))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots) | Conversational, personalised mobile banking | Announced | Stated direction: customers describe tasks in their own words; not yet launched. | [Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/) |
| [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting) | Digital account opening and lending on Blend | In production | Automated review cut manual handling to 3%; lending on Blend since 2020. | [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Vendor-breach response | In production | Statement and tax-document vendor compromise; limited-exposure framing. | [American Banker](https://www.americanbanker.com/news/citizens-frost-blame-vendor-after-data-breach-claim) |
| [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots) | Contact Center Copilot and enhanced customer chat (employee-facing) | In production | Named in the August 2026 investor deck as behind call-centre gains (the deck does not name a vendor for the copilot); Stead describes AI that gives employees 'more knowledge at their fingertips' rather than a bot in the conversation. | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm), [Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | AI risk factors in the 10-K | In production | Unintended consequences from AI, automation and algorithms; AI adoption increasing cyber-attack exposure; AI enhancing criminals' ability to defeat fraud controls. | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm) |
| [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots) | AI co-pilot for contact-centre representatives | In production | LivePerson's co-pilot summarises calls and prompts representatives; Frost also uses it for conversation analysis, sentiment analysis and quality assurance (reported July 2024; the relationship was then more than three years old). | [Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy) |
| [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud) | AI fraud detection as the expected first use case | Announced | Laura Miller said fraud detection is likely to be one of the early AI use cases at Frost and most banks; no model, vendor or result has been disclosed. | [Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy) |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | Fraud and sanctions-screening modernisation | In production | Listed as completed in the August 2026 investor deck's digital-transformation timeline; the deck does not say whether models are involved. | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Limited AI tools in the investment adviser | In production | Frost Investment Services restricts AI-based tools to internal research, operational and administrative work under supervisory controls, and says they do not make investment decisions or trades. | [Frost Bank](https://www.frostbank.com/FormADVPart2A) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| Digital account-opening completion rate | 50% → 80% | Aug 18, 2026 | [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1) |
| Applications needing manual review | 15% → 3% | Aug 18, 2026 | [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1) |
| Net promoter score after launch | 90 → 94 | Aug 18, 2026 | [Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1) |
| 2025 mortgage originations | $595 million (19% above goal) | May 12, 2026 | [American Banker](https://www.americanbanker.com/news/how-ai-is-supporting-bank-mortgage-growth-plans) |
| Second-quarter 2026 net income to common | $170.4 million | Jul 30, 2026 | [Cullen/Frost Bankers](https://frostbank.com/dam/Docs/Newsroom/NewsRelease/CullenFrostBankersReportsSecondQuarterResults-July302026.pdf) |
| Call centre, staffing vs call volume | Staffing +14%; call volume +38% | Dec 31, 2025 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm) |
| Tier-one capabilities modernised | 66% (40% in the cloud); target 91% in 2027 | Aug 17, 2026 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm) |
| Consumer deposit accounts opened online | 53% (Q2 2026) | Jun 30, 2026 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm) |
| New Texas branches planned for 2026 | ≈ 15 (≈ 150 hires) | Jan 29, 2026 | [Banking Dive](https://www.bankingdive.com/news/frost-bank-texas-growth-mergers-acquisitions-fifth-third-huntington/811110/) |
| Technology spend, second quarter 2024 | $35.9 million (+8% year on year) | Jun 30, 2024 | [Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy) |
| Mentions of 'artificial intelligence' in the 10-K | 2 (FY2024) → 4 (FY2025) | Feb 5, 2026 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926325000017/cfr-20241231.htm), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm) |
| Full-time-equivalent employees | 6,008 | Dec 31, 2025 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm) |
| Contact-centre AI co-pilot: vendor-reported satisfaction and response | 91% customer satisfaction; response under 60 seconds (LivePerson's figures) | Jul 29, 2024 | [Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy) |
| Frost app rating in Apple's App Store | 4.9 (bank says no US bank has a higher rating) | Jun 30, 2026 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm) |
| Checking households engaging digitally in the past month | 81% (80% a year earlier) | Jun 30, 2026 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm) |
| Consumer digital money-movement growth | +10% (Q2 2026 vs Q2 2025) | Jun 30, 2026 | [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm) |

## Quotes

> "We've absolutely avoided fronting conversations with a customer using a bot. It's something that I don't think that we'll ever do." — Jimmy Stead, Chief Consumer Banking and Technology Officer, Jan 29, 2025 ([Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/))

> "We're entering a time where you can really, in your own words, tell the app what you need to do, and it'll walk you through that. It's more on your terms." — Jimmy Stead, Chief Consumer Banking and Technology Officer, Jan 29, 2025 ([Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/))

> "I don't know that technology is influencing goals, but it certainly is allowing us to achieve those in a manner that we probably couldn't if we didn't have what we have." — Beverly Hankinson, SVP, Mortgage Loan Advisors Manager, May 12, 2026 ([American Banker](https://www.americanbanker.com/news/how-ai-is-supporting-bank-mortgage-growth-plans))

> "I suspect that [fraud detection] is going to be one of the early use cases [of AI] that you see here at Frost and at most banks." — Laura Miller, EVP, Consumer Strategy and Digital, Jul 29, 2024 ([Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy))

> "It's less about operational efficiency, although that is something we expect to happen with AI." — Laura Miller, EVP, Consumer Strategy and Digital, Jul 29, 2024 ([Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy))

> "It's not a substitute, it's not in the middle of our conversations with customers." — Jimmy Stead, Chief Consumer Banking and Technology Officer, Jan 29, 2025 ([Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/))

> "Obviously, we don't have the purse strings of the really big banks." — Jimmy Stead, Chief Consumer Banking and Technology Officer, Jan 29, 2025 ([Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/))

> "A lot of companies today are drowning in data but starving for insights." — Katie Keating, EVP, Director of Consumer Products and Strategy, Aug 18, 2026 ([Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1))

## Who runs AI

- **Phil Green** — Chairman and CEO, Cullen/Frost Bankers ([LinkedIn](https://www.linkedin.com/in/phil-green-frost/)) ([Banking Dive](https://www.bankingdive.com/news/frost-bank-texas-growth-mergers-acquisitions-fifth-third-huntington/811110/))
- **Jimmy Stead** — Group EVP, Chief Consumer Banking and Technology Officer ([LinkedIn](https://www.linkedin.com/in/jimmy-stead-frost/)) ([Banking Dive](https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm))
- **John T. Engates** — Independent director (since 2025); chair of the board's Technology and Cybersecurity Committee; former Cloudflare field CTO ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm))
- **Katie Keating** — EVP, Director of Consumer Products and Strategy ([LinkedIn](https://www.linkedin.com/in/keatingkatie/)) ([Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1))
- **Brad Bremer** — SVP, Consumer Deposit Products ([LinkedIn](https://www.linkedin.com/in/brad-bremer-0a9341ba/)) ([Business Wire via FT Markets](https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1))
- **Beverly Hankinson** — SVP, Mortgage Loan Advisors Manager ([LinkedIn](https://www.linkedin.com/in/beverly-hankinson-frost/)) ([American Banker](https://www.americanbanker.com/news/how-ai-is-supporting-bank-mortgage-growth-plans))
- **Carol J. Severyn** — Group EVP, Chief Risk Officer (since January 2019); the Chief Information Security Officer reports to her and she reports to the CEO ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm))
- **Daniel J. Geddes** — Group EVP, Chief Financial Officer (since January 2025); presents noninterest expense, including technology expense, on the quarterly call ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm), [The Motley Fool (earnings call transcript)](https://www.fool.com/earnings/call-transcripts/2026/02/10/cullen-frost-cfr-q3-2025-earnings-transcript/))
- **Laura Miller** — EVP, Consumer Strategy and Digital (as of July 2024); spoke for Frost on AI, fraud and its contact-centre co-pilot ([Bank Automation News](https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy))
- **Linda B. Rutherford** — Independent director (since 2022); former Chief Administration Officer of Southwest Airlines, with Technology and Artificial Intelligence & Data Transformation in her remit ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm))
- **Cynthia J. Comparin** — Independent director (since 2018); Technology and Cybersecurity Committee member; founder and former CEO of Animato Technologies; holds a certificate in Systemic Cyber Risk Governance ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm))
- **Chris M. Avery** — Independent director and Technology and Cybersecurity Committee member; told the board in January 2026 he would retire at the April 29, 2026 annual meeting ([Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm), [Cullen/Frost Bankers (SEC filings)](https://www.sec.gov/Archives/edgar/data/39263/000003926326000007/cfr-20260128.htm))

## Open AI roles

Data as of Oct 25, 2026 (2026-10-25) · read from the bank's own careers site, re-checked weekly.

2 open AI-related postings on [the careers site](https://frostbank.wd5.myworkdayjobs.com/en-US/external) as of Oct 25, 2026. A snapshot of current openings, not a source: postings close.

- [Engineer III - AI](https://frostbank.wd5.myworkdayjobs.com/en-US/external/job/San-Antonio-TX---One-Frost/Engineer-III---AI_R260062-1) — San Antonio, TX - One Frost
- [Application Security Analyst II - AI](https://frostbank.wd5.myworkdayjobs.com/en-US/external/job/San-Antonio-TX---One-Frost/Application-Security-Analyst-II---AI_R261393) — San Antonio, TX - One Frost — posted Sep 25, 2026

## Which AI vendors and fintechs does Frost work with?

| Company | What Frost uses it for | Status | Category |
| --- | --- | --- | --- |
| [Blend](https://www.bankingnewsai.com/vendors/blend) | Digital home equity, mortgage and consumer loan applications since 2020, and deposit account opening; Frost reported account opening completion rising from 50% to 80% (Blend release). | In production | [Document AI](https://www.bankingnewsai.com/ai-tools/document-ai) |

Each vendor and fintech page cites the source for the relationship. [AI tools for banks](https://www.bankingnewsai.com/ai-tools) · [fintech and neobank AI dossiers](https://www.bankingnewsai.com/fintech).

## Regulators it answers to

- [Federal Reserve](https://www.bankingnewsai.com/ai-regulation/federal-reserve) — Frost Bank is a Texas state member bank; the Fed's model-risk and third-party guidance govern Blend-based decisioning and the vendor breach. See [SR 11-7](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-11-7), [SR 23-4](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-23-4).
- [CFPB](https://www.bankingnewsai.com/ai-regulation/cfpb) — Automated account-opening and consumer lending decisions carry ECOA adverse-action and UDAAP obligations. See [ECOA / Regulation B adverse action (15 U.S.C. 1691(d); 12 CFR 1002.9)](https://www.bankingnewsai.com/ai-regulation/documents/cfpb-ecoa-regulation-b-adverse-action), [CFPB Chatbots in Consumer Finance (issue spotlight, 2023)](https://www.bankingnewsai.com/ai-regulation/documents/cfpb-chatbots-in-consumer-finance-2023).
- [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic) — Deposit account opening and the vendor incident touch FDIC operational-risk expectations for state banks. See [FDIC FIL-29-2023](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-29-2023).

## What the record suggests

### The Blend numbers are the best AI-adjacent disclosure Frost has

Manual review at 3% is an automation result; naming what does the reviewing would help examiners and investors distinguish rules from models.

### Autopilot is the question to ask

Blend's agentic pre-underwriting is live across its lenders; whether Frost has opted in determines whether it now runs an agent in credit.

### Vendor concentration is the risk that materialised

The 2026 breach came through outsourced document fulfilment, the kind of concentrated vendor that AI-era third-party guidance singles out.

### A conversational app is a CFPB chatbot question

Stead's vision of plain-language banking is exactly what the CFPB's chatbot circular scrutinises; design for escalation to humans from the start.

## FAQ

### Does Frost Bank use AI?

Frost has described AI as the technology that will make its mobile app simpler and more personalised, and it automates digital account opening and lending through Blend, which cut manual review from 15% to 3%. It has not disclosed an AI budget or a head of AI. Its August 2026 investor deck does name an employee-facing 'Contact Center Copilot' and enhanced customer chat, and its consumer technology chief has said Frost will not put a bot in front of customers.

### What happened in Frost Bank's 2026 data breach?

In April 2026 the Everest ransomware group claimed to hold about 250,000 Social Security and taxpayer identification numbers from Frost. Frost attributed the incident to a third-party vendor that handles tax-document fulfilment, and analysts said the samples suggested a shared vendor compromise also affecting Citizens, not a breach of Frost's own systems.

### Who leads AI at Frost Bank?

Frost has not named a chief AI officer, chief data officer or head of AI, and its filings do not name the CIO. AI falls to Jimmy Stead, group executive vice president and chief consumer banking and technology officer, whose remit covers digital services, consumer operations and the contact centre; the 2025 10-K says the CIO reports to the chief consumer banking officer. Chief risk officer Carol Severyn oversees the CISO. On the board, John Engates, a former Cloudflare field CTO, chairs the Technology and Cybersecurity Committee, and Linda Rutherford ran AI and data transformation at Southwest Airlines. Laura Miller, EVP of consumer strategy and digital, spoke for Frost on AI in July 2024.

### Which vendors and patents sit behind Frost's AI work?

Frost names no AI lab, cloud provider or GPU supplier. The one AI-linked vendor reported is LivePerson, whose co-pilot summarises calls and prompts contact-centre staff, according to a July 2024 Bank Automation News report; the 2026 investor deck lists a Contact Center Copilot without naming a supplier. Other disclosed partners are Blend for lending since 2020 and now account opening, Atomic for direct-deposit switching, Finzly for FedNow and RTP, and Plaid for open finance. Under the parent's name Google Patents lists two US filings, both from 2017, on profile authentication and fee waivers. Neither concerns AI.

### What does Frost's 10-K say about artificial intelligence?

The 2025 10-K, filed 5 February 2026, uses the phrase 'artificial intelligence' four times, up from two in the 2024 10-K. It warns that AI, automation and algorithms 'may have unintended consequences due to their limitations or our failure to use them effectively', that adopting AI increases cyber-attack risk, that attack techniques evolve 'as a result of artificial intelligence', and that AI 'may further enhance' criminals' ability to commit fraud. The Q2 2026 10-Q adds 'advances in artificial intelligence and quantum computing' to its forward-looking risk factors, which the Q1 2026 10-Q does not. Frost discloses no AI budget.

## Sources (26)

1. Citizens, Frost blame vendor after data breach claim — American Banker, Apr 22, 2026. https://www.americanbanker.com/news/citizens-frost-blame-vendor-after-data-breach-claim
2. How AI is supporting bank mortgage growth plans — American Banker, May 12, 2026. https://www.americanbanker.com/news/how-ai-is-supporting-bank-mortgage-growth-plans
3. Frost Bank exec: AI to usher in simpler mobile banking era — Banking Dive, Jan 29, 2025. https://www.bankingdive.com/news/ai-mobile-banking-apps-digital-customer-experience-frost-bank/738610/
4. Frost Bank sticks to organic growth as Texas M&A heats up — Banking Dive, Jan 29, 2026. https://www.bankingdive.com/news/frost-bank-texas-growth-mergers-acquisitions-fifth-third-huntington/811110/
5. Frost Bank Achieves 60% Increase in Digital Account Openings With Blend — Business Wire via FT Markets, Aug 18, 2026. https://markets.ft.com/data/announce/full?dockey=600-202608180800BIZWIRE_USPRX____20260818_BW315276-1
6. Early Production Results for Blend's Autopilot Show What Agentic AI Means For Lending — Business Wire via FT Markets, Aug 20, 2026. https://markets.ft.com/data/announce/full?dockey=600-202608200800BIZWIRE_USPRX____20260820_BW158280-1
7. Cullen/Frost Reports First Quarter Results — Cullen/Frost Bankers, Apr 30, 2026. https://frostbank.com/dam/Docs/Newsroom/NewsRelease/CullenFrostBankersReportsFirstQuarterResults-April302026.pdf
8. Cullen/Frost Reports Second Quarter Results — Cullen/Frost Bankers, Jul 30, 2026. https://frostbank.com/dam/Docs/Newsroom/NewsRelease/CullenFrostBankersReportsSecondQuarterResults-July302026.pdf
9. Cullen/Frost Bankers Annual Report on Form 10-K for the fiscal year ended December 31, 2025 — Cullen/Frost Bankers (SEC filings), Feb 5, 2026. https://www.sec.gov/Archives/edgar/data/39263/000003926326000011/cfr-20251231.htm
10. Cullen/Frost Q2 2026 investor presentation (Form 8-K, Exhibit 99.1) — Cullen/Frost Bankers (SEC filings), Aug 17, 2026. https://www.sec.gov/Archives/edgar/data/39263/000003926326000049/a2q-2026finalinvestorpre.htm
11. Cullen/Frost Bankers 2026 Proxy Statement (DEF 14A) — Cullen/Frost Bankers (SEC filings), Mar 20, 2026. https://www.sec.gov/Archives/edgar/data/39263/000003926326000023/cfr-20260320.htm
12. Blend Honors Seven Customers With Best in Banking Awards at Forum 2026 — Business Wire via Yahoo Finance, Aug 27, 2026. https://finance.yahoo.com/small-business/articles/blend-honors-seven-customers-best-200000530.html
13. Inside look: Frost Bank's AI and payments strategy — Bank Automation News, Jul 29, 2024. https://bankautomationnews.com/allposts/ai/inside-look-frost-banks-ai-and-payments-strategy
14. Frost Bank Improves Customer Experience with Atomic Direct Deposit Switch — Business Wire via FinTech Futures, Apr 23, 2024. https://fintechfutures.com/press-releases/frost-bank-improves-customer-experience-with-atomic-direct-deposit-switch
15. Frost Bank in Texas taps Finzly for instant payments — FinTech Futures, Jun 27, 2024. https://fintechfutures.com/instant-real-time-payments/frost-bank-in-texas-taps-finzly-for-instant-payments
16. Cullen/Frost Bankers Annual Report on Form 10-K for the fiscal year ended December 31, 2024 — Cullen/Frost Bankers (SEC filings), Feb 6, 2025. https://www.sec.gov/Archives/edgar/data/39263/000003926325000017/cfr-20241231.htm
17. Cullen/Frost (CFR) Q3 2025 earnings call transcript (The Motley Fool) — The Motley Fool (earnings call transcript), Oct 30, 2025. https://www.fool.com/earnings/call-transcripts/2026/02/10/cullen-frost-cfr-q3-2025-earnings-transcript/
18. Cullen/Frost Bankers Form 8-K: director appointments and retirement — Cullen/Frost Bankers (SEC filings), Jan 30, 2026. https://www.sec.gov/Archives/edgar/data/39263/000003926326000007/cfr-20260128.htm
19. Form ADV Part 2A - Frost Investment Services, LLC firm brochure — Frost Bank, Mar 25, 2026. https://www.frostbank.com/FormADVPart2A
20. Cullen/Frost Bankers Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 — Cullen/Frost Bankers (SEC filings), Apr 30, 2026. https://www.sec.gov/Archives/edgar/data/39263/000003926326000035/cfr-20260331.htm
21. Frost Bank hit with class-action lawsuits over data breach affecting more than 100,000 customers — San Antonio Express-News via Yahoo Finance, Apr 23, 2026. https://finance.yahoo.com/sectors/technology/articles/frost-bank-hit-class-action-193000972.html
22. Cullen/Frost Bankers Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 — Cullen/Frost Bankers (SEC filings), Jul 30, 2026. https://www.sec.gov/Archives/edgar/data/39263/000003926326000046/cfr-20260630.htm
23. Cullen/Frost (CFR) Q2 2026 earnings call transcript (The Motley Fool) — The Motley Fool (earnings call transcript), Jul 30, 2026. https://www.fool.com/earnings/call-transcripts/2026/07/30/cullenfrost-cfr-q2-2026-earnings-call-transcript/
24. Frost Bank partners with Plaid to bring open finance solutions to nearly 400,000 customers — Frost Bank, Feb 28, 2022. https://frostbank.com/dam/Docs/Newsroom/NewsRelease/FrostBankPartnersWithPlaidToBringOpenFinanceSolutions.pdf
25. US9787689B2: Network authentication of multiple profile accesses from a single remote device — Google Patents (USPTO), Oct 10, 2017. https://patents.google.com/patent/US9787689B2/en
26. US20170316393A1: System, apparatus and method for linking financial accounts to a subscription service and waiving select fees of those linked financial accounts — Google Patents (USPTO), Nov 2, 2017. https://patents.google.com/patent/US20170316393A1/en

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