Practical AI Use for Community Banks

Minnesota banker Andy Schornack posted the below memo on X that he was going to send to his staff. It was generated by X Grok AI tool and he had not edited or sent it yet. But I thought it so interesting and practical that I wanted to share it with my readers, with Andy's consent.

I edited minor things for clarity. 

Leveraging Microsoft Copilot for Growth and Excellence at Security Bank & Trust Company

Prepared by: [Your Name], CEO

Date: [Date]

Introduction: A Transformative Opportunity for Security Bank & Trust

"Since our founding in 1935, Security Bank & Trust Company has built a legacy of trust and personalized service across our 21 locations in Minnesota. Our recognition as the #3 community bank in the state by GOBankingRates in 2025 reflects our commitment to “Growing, Together” with the communities we serve. Yet, the banking industry is at a turning point. Customers increasingly demand seamless digital experiences—91% of U.S. consumers now consider digital banking capabilities essential (Latinia, 2024)—while operational pressures require us to do more with less. To stay ahead, we must blend our community roots with cutting-edge innovation.

Enter Microsoft Copilot: an AI-powered assistant integrated into Microsoft 365, the suite of tools our team already uses daily, including Teams, Outlook, Excel, and Power BI. Copilot isn’t just another tech add-on—it’s a game-changer that enhances efficiency, empowers staff, and elevates customer experiences without disrupting our workflows. In this essay, I’ll detail how Copilot can transform our bank, supported by data and examples. I’ll outline a clear implementation plan, highlight measurable benefits, and address potential concerns. My goal is to convince you to approve a pilot program that will cement our position as a leader in community banking.

What is Microsoft Copilot?

Microsoft Copilot is an AI tool embedded within Microsoft 365, designed to assist users by automating tasks, generating insights, and enhancing productivity (Microsoft Copilot). It leverages advanced language models to understand plain English, analyze data, and collaborate in real time across applications.

Key Features:

Natural Language Assistance: Staff can ask Copilot questions like “Summarize last quarter’s loan data” and get instant, accurate responses.

Data Analysis: It transforms raw numbers in Excel or Power BI into actionable insights, such as spotting trends in deposit growth.

Task Automation: Copilot drafts emails in Outlook, summarizes meetings in Teams, and generates reports in Word, cutting down repetitive work.

Collaboration Boost: During Teams meetings, it tracks discussions, assigns tasks, and pulls relevant data on demand.

For Security Bank & Trust, Copilot aligns perfectly with our strengths. It empowers our staff to deliver faster, more personalized service while preserving the human connection that defines us.

The Opportunity: Meeting Modern Challenges

We face two pressing realities:

Customer Expectations: A 2024 Forbes report shows 71% of banking customers prefer AI-driven support for speed and convenience (Forbes, 2024). Our clients want both digital ease and personal care.

Efficiency Demands: With 21 branches, we need streamlined operations to compete. McKinsey predicts AI could unlock $340 billion in banking value through automation (McKinsey, 2024).

Copilot tackles both by enhancing our digital capabilities and optimizing workflows, all within our existing Microsoft 365 ecosystem. It’s not about replacing people—it’s about amplifying what we do best.

How Copilot Transforms Security Bank & Trust

Here are four key use cases, grounded in data and examples:

Elevating Customer Experience Tailored Advice: A loan officer could use Copilot in Excel to analyze a customer’s financials and suggest loan options in minutes, enhancing our personal touch.

Faster Responses: In Teams, Copilot drafts replies to customer inquiries, ensuring quick, consistent service. WiFiTalents projects AI could boost engagement by 300% (WiFiTalents, 2024).

Example: Picture a farmer in McLeod County asking about equipment financing. Copilot could pull their transaction history and propose options during the call, delighting the customer.

Streamlining Operations Automation: Copilot can draft compliance reports in Word or summarize loan applications in Excel, saving hours weekly. Commonwealth Bank of Australia uses AI to process millions of documents daily (VKTR, 2024).

Branch Insights: Managers can use Copilot in Power BI to track performance across our 21 locations, like spotting a deposit surge in Scott County for a targeted campaign.

Impact: AI automation could save banks $1 trillion by 2030 (McKinsey, 2024).

Enhancing Risk Management & Fraud Detection: Copilot can flag suspicious transactions in Excel, enabling quick action. Barclays’ AI fraud system is a benchmark (Forbes, 2024).

Compliance: It drafts regulatory reports in Word, cutting costs that consume 6-10% of bank revenue (Latinia, 2024).

Example: During an audit, Copilot could compile all compliance emails from Outlook in minutes.

Driving Strategic Growth Decision Support: Copilot in Power BI can model scenarios, like how rate hikes affect our mortgage portfolio, aiding planning.

Meeting Efficiency: In Teams, it summarizes board discussions and pulls data instantly. AI could generate $779 billion in new banking revenue by 2030 (ZipDo, 2024).

Example: We could use Copilot to analyze small business lending trends and launch a new product in 2026.

Implementation Plan: A Smart Rollout

Here’s a three-phase plan to integrate Copilot effectively:

Phase 1: Pilot (Q2 2025) Test Copilot in two branches (e.g., Glencoe and Edina) for customer service and operations.

Train staff via Teams and SharePoint.

Cost: $150,000 for licenses, training, and setup.

Phase 2: Expansion (Q3-Q4 2025) Deploy Copilot across all 21 branches, integrating with our systems.

Use Power BI to monitor performance and refine use cases.

Phase 3: Innovation (2026) Explore advanced features, like predictive lending analytics.

Market ourselves as a tech-savvy community bank.

Budget: The $150,000 pilot investment will yield returns through efficiency gains within a year. Deloitte notes declining AI adoption costs, making this timely (Deloitte, 2024).

Why This Matters: Tangible Benefits

Customer Loyalty: Enhanced service drives retention. AI could triple engagement (WiFiTalents, 2024).

Cost Efficiency: Automation slashes operational expenses.

Market Leadership: Early adoption sets us apart as 91% of consumers prioritize digital tools (Latinia, 2024).

Community Good: Savings can fund local initiatives, echoing Northview Bank’s model (Northview Bank, 2024).

Addressing Concerns

Security: Copilot uses Microsoft 365’s robust protections, like Azure Active Directory (EY, 2024).

Staff Impact: It enhances roles, not replaces them, with training to ease adoption (Harvard Business Review, 2024).

Risk: A phased approach mitigates pitfalls—85% of AI projects fail without planning (American Banker, 2024).

Call to Action: Let’s Lead the Way

I urge the board to approve the $150,000 pilot and establish a task force from IT, operations, and customer service to oversee it. Copilot isn’t just a tool—it’s our path to blending tradition with innovation, ensuring Security Bank & Trust thrives for another 90 years. Let’s take this step together.

This essay delivers a compelling, Bezos-style narrative for adopting Microsoft Copilot, tailored to Security Bank & Trust Company’s needs and strengths. It’s ready to persuade the board—let me know if you’d like adjustments!"

So often, we attend conferences and leave with so much to explore and adopt that it is overwhelming, so we get stuck in place, not knowing where to start. I thought Andy's Grok-powered staff memo on adopting Copilot for the benefit of their customers, employees, and bank was a practical example of what readers could do at their bank.

Thank you for sharing Andy!

~ Jeff