# The Bancorp, Inc.: AI strategy

Source: https://www.bankingnewsai.com/banks/the-bancorp
Last updated: Oct 5, 2026

*A fintech-sponsor bank that writes AI into its strategy as an efficiency lever: AI tools to handle rising payment volume without matching headcount, named in its 10-K, on three consecutive earnings calls and in a September 2026 restructuring.*

## How is The Bancorp Bank using AI?

The Bancorp, Inc., the Wilmington, Delaware parent of The Bancorp Bank, N.A. (about $9.2 billion in lead-bank assets at June 30, 2026), is one of the few mid-sized US banks that puts AI in its stated strategy. Its 2025 10-K, filed February 25, 2026, lists 'Develop AI tools to Increase Efficiency' among its strategic goals and says it is investing in 'automation and AI tools to gain cost efficiency and increase productivity of our people and platform'. On the January 30, 2026 call CEO Damian Kozlowski named 'platform efficiency and productivity gains from platform restructuring and AI tools' as one of three drivers of 2026 EPS growth, and on the July 31, 2026 call he said AI is helping employees handle rising payment volume, including AI-supported narrative writing in financial crimes, with the bank reporting a 41% efficiency ratio and $56.5 million of quarterly noninterest expense. On September 4, 2026 the bank announced a restructuring that eliminates 64 filled positions, 9% of its workforce, as it 'expand[s] automation and artificial intelligence', with about $14 million of annualized savings from 80 discontinued positions. It has not named an AI vendor, platform or budget, and Chime's September 8 announcement that it will buy a bank has drawn analyst attention to its fintech-partner model.

## At a glance

| Field | Value |
| --- | --- |
| Lead bank | The Bancorp Bank, N.A. |
| Ticker | TBBK |
| Headquarters | Wilmington, DE |
| Consolidated assets | $9,206 million (Jun 30, 2026) |
| Federal Reserve rank | 153 |
| Charter | National bank (OCC); holding company supervised by the Federal Reserve |

## Key points

- Strategy: the 2025 10-K names developing AI tools to increase efficiency as a strategic goal, alongside its fintech platform, and warns that AI use may not have the intended effect on efficiency or results.
- Financial crimes: on the Q2 2026 call the CEO cited AI-supported narrative writing as a specific use case that helps manage headcount while gross dollar volume grows at several times the market rate.
- Restructuring (September 4, 2026): 64 filled positions (9% of the workforce) cut, plus 16 roles left unfilled; the bank says it will 'expand automation and artificial intelligence' and expects about $14 million of annualized run-rate savings.
- Leadership change: Matt Wallace, who led AI programs, robotic process automation, fraud management and data science as EVP and CIO, left for PCBB in April 2026; the bank is hiring a Director of AI Strategy and Intelligent Automation.
- Context: Chime, one of its sponsor-bank customers, said on September 8, 2026 it would buy a bank of its own; Piper Sandler analysts put Chime at about 8% of Bancorp revenue in Q2.

## Timeline

- Sep 8, 2026 — **Chime says it will buy a bank of its own** American Banker reports Bancorp shares were down 21.7% by September 21 from the September 8 close; Chime and The Bancorp have a contract until mid-2028 that requires a year's notice to exit. ([American Banker](https://americanbanker.com/payments/news/how-the-banking-as-a-service-model-is-changing))
- Sep 4, 2026 — **Apex 2030 restructuring: 64 jobs cut, more automation and AI** Small Business Lending new originations to end by year-end 2026; 64 filled positions (9%) eliminated, 16 more left unfilled, about $5.6 million of charges and $14 million of annualized savings. ([The Bancorp (Business Wire via Yahoo Finance)](https://finance.yahoo.com/small-business/articles/bancorp-advances-apex-2030-continued-200500324.html))
- Jul 31, 2026 — **Q2 2026 call: AI in financial crimes and productivity** The CEO cites enterprise-wide AI and AI-supported narrative writing in financial crimes; the bank reports a 41% efficiency ratio and $56.5 million of noninterest expense. ([MarketBeat via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-q2-earnings-call-highlights-130357747.html), [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-inc-tbbk-q2-2026-190120101.html))
- Apr 24, 2026 — **Q1 2026 call: restructuring and AI tools to redeploy resources** Summary of the call says efficiency is being improved through organisational restructuring and AI tools so that resources can be redeployed toward fintech initiatives. ([Moby via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-inc-q1-2026-earnings-123000642.html))
- Apr 21, 2026 — **Former CIO Matt Wallace joins PCBB** PCBB names him EVP and CIO; the release says that at The Bancorp he led application development, infrastructure and security, AI programs, RPA, fraud management and data science. ([PCBB (GlobeNewswire)](https://globenewswire.com/news-release/2026/04/21/3278224/0/en/PCBB-Appoints-Matt-Wallace-as-EVP-Chief-Information-Officer.html))
- Feb 25, 2026 — **10-K: AI as a strategic goal and a full risk factor** 'Develop AI tools to Increase Efficiency' is listed as a strategy; a separate risk factor covers generative-AI errors, bias, opacity and dependence on third-party models. ([The Bancorp, Inc. (SEC filing)](https://www.sec.gov/Archives/edgar/data/1295401/000129540126000002/tbbk-20251231x10k.htm))
- Jan 30, 2026 — **Q4 2025 call: AI tools named as an earnings driver** Initiating 2026 guidance of $5.90 EPS, the CEO lists platform efficiency and productivity gains from restructuring and AI tools among the three drivers of EPS accretion. ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-the-bancorp-q4-2025-misses-eps-forecast-stock-drops-93CH-4476230))

## Where AI runs

| Use case | What | Status | Detail | Sources |
| --- | --- | --- | --- | --- |
| [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc) | AI-supported narrative writing in financial crimes | In production | Described by the CEO on the Q2 2026 call as making financial-crimes staff more productive while volume grows; no vendor or model named. | [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-inc-tbbk-q2-2026-190120101.html), [MarketBeat via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-q2-earnings-call-highlights-130357747.html) |
| [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai) | Enterprise AI tools for employee productivity | In production | CEO says AI is used 'at the enterprise level' to empower employees and increase productivity; the 10-K lists investing in automation and AI tools as strategy. | [Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-inc-tbbk-q2-2026-190120101.html), [The Bancorp, Inc. (SEC filing)](https://www.sec.gov/Archives/edgar/data/1295401/000129540126000002/tbbk-20251231x10k.htm) |
| [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general) | Automation and AI in the Apex 2030 operating model | Rolling out | The September 2026 restructuring says the bank is refining workflows and expanding automation and AI while cutting costs. | [The Bancorp (Business Wire via Yahoo Finance)](https://finance.yahoo.com/small-business/articles/bancorp-advances-apex-2030-continued-200500324.html) |
| [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors) | Reliance on third-party AI models | Announced | The 10-K says it may rely on AI models developed by third parties and so depends on how those parties build and train them. | [The Bancorp, Inc. (SEC filing)](https://www.sec.gov/Archives/edgar/data/1295401/000129540126000002/tbbk-20251231x10k.htm) |
| [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk) | AI opacity and bias risk | Announced | The 10-K flags that the complexity of AI models limits transparency, making erroneous output, bias and regulatory explanation harder to manage. | [The Bancorp, Inc. (SEC filing)](https://www.sec.gov/Archives/edgar/data/1295401/000129540126000002/tbbk-20251231x10k.htm) |

## Disclosed numbers

| Measure | Value | As of | Sources |
| --- | --- | --- | --- |
| Lead-bank assets (Fed release) | $9,206 million | Jun 30, 2026 | [Federal Reserve Board](https://www.federalreserve.gov/releases/lbr/current/) |
| Efficiency ratio | 41% | Jun 30, 2026 | [MarketBeat via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-q2-earnings-call-highlights-130357747.html) |
| Quarterly noninterest expense | $56.5 million | Jun 30, 2026 | [MarketBeat via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-q2-earnings-call-highlights-130357747.html) |
| Fintech gross dollar volume growth | 22.5% year over year | Jun 30, 2026 | [MarketBeat via Yahoo Finance](https://finance.yahoo.com/markets/stocks/articles/bancorp-q2-earnings-call-highlights-130357747.html) |
| Restructuring: positions eliminated | 64 filled positions (9% of workforce); 16 further roles not backfilled | Sep 4, 2026 | [The Bancorp (Business Wire via Yahoo Finance)](https://finance.yahoo.com/small-business/articles/bancorp-advances-apex-2030-continued-200500324.html) |
| Restructuring: savings and charges | About $14 million annualized run-rate savings; about $5.6 million of charges | Sep 4, 2026 | [The Bancorp (Business Wire via Yahoo Finance)](https://finance.yahoo.com/small-business/articles/bancorp-advances-apex-2030-continued-200500324.html) |

## Quotes

> "Our three major fintech initiatives, platform efficiency and productivity gains from platform restructuring and AI tools, plus a high level of capital return through continued buybacks, will be the driving forces behind EPS accretion." — Damian Kozlowski, Chief Executive Officer, Jan 30, 2026 ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-the-bancorp-q4-2025-misses-eps-forecast-stock-drops-93CH-4476230))

> "By simplifying how we operate and building a more focused, technology-enabled organization, we can move faster, serve our partners more effectively and sustain strong performance over the long term." — Damian Kozlowski, Chief Executive Officer, Sep 4, 2026 ([The Bancorp (Business Wire via Yahoo Finance)](https://finance.yahoo.com/small-business/articles/bancorp-advances-apex-2030-continued-200500324.html))

## Who runs AI

- **Damian Kozlowski** — Chief Executive Officer ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-the-bancorp-q4-2025-misses-eps-forecast-stock-drops-93CH-4476230), [The Bancorp (Business Wire via Yahoo Finance)](https://finance.yahoo.com/small-business/articles/bancorp-advances-apex-2030-continued-200500324.html))
- **Dominic Canuso** — Chief Financial Officer ([Investing.com](https://investing.com/news/transcripts/earnings-call-transcript-the-bancorp-q4-2025-misses-eps-forecast-stock-drops-93CH-4476230))
- **Matt Wallace** — Former EVP and Chief Information Officer (left for PCBB, April 2026); led AI programs, RPA, fraud management and data science ([PCBB (GlobeNewswire)](https://globenewswire.com/news-release/2026/04/21/3278224/0/en/PCBB-Appoints-Matt-Wallace-as-EVP-Chief-Information-Officer.html))

## Open AI roles

2 open AI-related postings on [the careers site](https://careers-bancorpbank.icims.com/jobs/) as of Oct 5, 2026. A snapshot of current openings, not a source: postings close.

- [Director AI Strategy & Intelligent Automation](https://careers-bancorpbank.icims.com/jobs/6258/director-ai-strategy-%26-intelligent-automation/job) — Wilmington, DE
- [Senior AI & Automation Specialist (Hybrid)](https://careers-bancorpbank.icims.com/jobs/6224/senior-ai-%26-automation-specialist-%28hybrid%29/job) — Wilmington, DE

## Regulators it answers to

- [OCC](https://www.bankingnewsai.com/ai-regulation/occ) — The Bancorp Bank is a national bank; the OCC's revised model-risk guidance and third-party risk guidance cover AI used in financial-crimes workflows and AI embedded in vendor tools. See [OCC Bulletin 2026-13](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2026-13), [OCC Bulletin 2023-17](https://www.bankingnewsai.com/ai-regulation/documents/occ-bulletin-2023-17).
- [Federal Reserve](https://www.bankingnewsai.com/ai-regulation/federal-reserve) — The Bancorp, Inc. is a bank holding company supervised by the Federal Reserve, whose model-risk guidance applies to enterprise AI tools. See [SR 26-2](https://www.bankingnewsai.com/ai-regulation/documents/fed-sr-26-2).
- [FinCEN](https://www.bankingnewsai.com/ai-regulation/fincen) — AI-supported suspicious-activity narrative writing sits inside the BSA/AML programme of a sponsor bank with many fintech programmes; FinCEN and the agencies address model use there. See [2021 BSA/AML Model Risk Management Statement](https://www.bankingnewsai.com/ai-regulation/documents/fincen-bsa-aml-model-risk-statement-2021), [2018 Joint Statement on BSA/AML Innovation](https://www.bankingnewsai.com/ai-regulation/documents/fincen-joint-statement-innovation-2018).

## What the record suggests

### AI is framed as a cost lever for a platform business

Management ties AI to handling several times the market's volume growth with fewer people, and the September restructuring pairs job cuts with 'automation and artificial intelligence'; the public case is productivity, not customer-facing AI.

### Compliance operations are the one named use

Narrative writing for financial-crimes cases is the only specific use the bank cites. For a sponsor bank with many fintech programmes, case volume is a natural place for generative tools, and the output remains subject to BSA/AML review.

### AI leadership is being rebuilt

The executive who ran AI programmes left in April 2026 and the bank is recruiting a Director of AI Strategy and Intelligent Automation, which suggests the effort is being reorganised rather than abandoned.

### Partner concentration matters more than AI to the equity story

The Chime news of September 8, which American Banker linked to a 21.7% fall in the share price, is the larger driver of how the bank is judged; AI is part of its answer on costs.

## FAQ

### Does The Bancorp Bank use AI?

Yes, by its own account. The CEO says the bank uses AI at the enterprise level and for AI-supported narrative writing in financial crimes, and the 10-K lists developing AI tools to increase efficiency as a strategic goal. It has not named a vendor, platform or budget.

### Is The Bancorp cutting jobs because of AI?

On September 4, 2026 the bank announced a restructuring that eliminates 64 filled positions, 9% of its workforce, and said it is refining workflows and expanding automation and artificial intelligence. It also exits small business lending origination by the end of 2026, so the cuts are not attributed to AI alone.

## Sources (9)

1. The Bancorp, Inc. Form 10-K for the fiscal year ended December 31, 2025 — The Bancorp, Inc. (SEC filing), Feb 25, 2026. https://www.sec.gov/Archives/edgar/data/1295401/000129540126000002/tbbk-20251231x10k.htm
2. Earnings call transcript: The Bancorp Q4 2025 misses EPS forecast, stock drops — Investing.com, Jan 30, 2026. https://investing.com/news/transcripts/earnings-call-transcript-the-bancorp-q4-2025-misses-eps-forecast-stock-drops-93CH-4476230
3. The Bancorp, Inc. Q1 2026 Earnings Call Summary — Moby via Yahoo Finance, Apr 24, 2026. https://finance.yahoo.com/markets/stocks/articles/bancorp-inc-q1-2026-earnings-123000642.html
4. Bancorp Q2 Earnings Call Highlights — MarketBeat via Yahoo Finance, Jul 31, 2026. https://finance.yahoo.com/markets/stocks/articles/bancorp-q2-earnings-call-highlights-130357747.html
5. The Bancorp Inc (TBBK) (Q2 2026) Earnings Call Highlights: EPS Soars 14.2% to $1. ... — Yahoo Finance, Jul 31, 2026. https://finance.yahoo.com/markets/stocks/articles/bancorp-inc-tbbk-q2-2026-190120101.html
6. The Bancorp Advances Apex 2030 Through Continued Organizational Alignment — The Bancorp (Business Wire via Yahoo Finance), Sep 4, 2026. https://finance.yahoo.com/small-business/articles/bancorp-advances-apex-2030-continued-200500324.html
7. PCBB Appoints Matt Wallace as EVP & Chief Information Officer — PCBB (GlobeNewswire), Apr 21, 2026. https://globenewswire.com/news-release/2026/04/21/3278224/0/en/PCBB-Appoints-Matt-Wallace-as-EVP-Chief-Information-Officer.html
8. How the banking-as-a-service model is changing — American Banker, Sep 21, 2026. https://americanbanker.com/payments/news/how-the-banking-as-a-service-model-is-changing
9. Large Commercial Banks (data as of June 30, 2026) — Federal Reserve Board, Oct 2, 2026. https://www.federalreserve.gov/releases/lbr/current/

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