Fintech

AI is a huge mistake (if you don’t understand what it’s for)

Published

7 months ago

27 June, 2024

AI is a huge mistake (if you don't understand what it's for)

It amazes me how many people in banks and tech companies talk about cloud, big data, AI, fintech, blockchain, apps, 5G, analytics, APIs and more as if they are all dry. They are containers of technology, but in each container there is a use case, and in many, hundreds or even thousands of use cases. In other words, none of these technological developments are one thing – one thing – instead they are developments that have encouraged many things.

Let’s take Fintech for example. We know that most Fintech startups initially focused on payments and lending, but again these are smaller segments as there are many variations of payments and lending innovations, from peer-to-peer to buy-now-pay-later to from merchant checkout to tokenization and digital wallets. None of these areas represents a homogeneous set of technology. It concerns the granularity and detail of the individual use cases that compose them.

The same goes for artificial intelligence.

Source: Imtiaz Adam

And then you have the map of the AI market in Fintech.

Source: CB Insights

That’s why I find it funny to see fellow fintechs discussing this anomaly. The anomaly is that CxO leaders at banks think AI is a thing and tell their employees they need to be at the forefront of this thing. The fact is, it’s not a thing. It’s a lot of things.

For example, Ron Shevlin, Chief Research Officer at Cornerstone Advisors, note that “AI refers to different types of technologies. Bringing everything together under one label is a huge mistake.”

Likewise, I find that many financial executives are excited about all these technologies but have little understanding of what they actually mean. If I walk into a meeting room and they mention AI, I will ask what LLM means; or if they mention cryptocurrency or blockchain, I will ask them what DLT means.

Now, I hate TLAs (three-letter acronyms) – as regularly stated – but if a company can’t understand the emerging technology landscape, they should make sure they hire someone who can… and I don’t mean a consultant. In fact, consultancies are very good at crafting TLAs to ensure that people are confused and bewildered, but eager to keep up.

The main way to stay ahead is to understand that technology and its many advances, from artificial intelligence to the cloud, are just like banking and its many advances, from investing to lending.

In fact, technology and finance have a lot in common. At the granular level of the banking sector there are also many TLAs, from your BMACH to your IMOs.

So if you’re a CxO at a finance organization and you hear techies talking about AI and cloud, remember that buzzwords are irrelevant – what matters is what you can do with them.

In this regard, there is an excellent article by Igor Tomych, CEO of DashDevs, who explains seven key use cases of AI in banking that are worth a read if you have ten minutes.

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Fintech

Lloyds and Nationwide invest in Scottish fintech AI Aveni

Published

6 months ago

29 July, 2024

FinCrypto Staff

Lloyds and Nationwide invest in Scottish AI fintech Aveni

Lloyds Banking Group and Nationwide have joined an £11m Series A funding round in Scottish artificial intelligence fintech Aveni.

The investment is led by Puma Private Equity with additional participation from Par Equity.

Aveni creates AI products specifically designed to streamline workflows in the financial services industry by analyzing documents and meetings across a range of operational functions, with a focus on financial advisory services and consumer compliance.

The cash injection will help fund the development of a new product, FinLLM, a large-scale language model created specifically for the financial sector in partnership with Lloyds and Nationwide.

Joseph Twigg, CEO of Aveni, explains: “The financial services industry doesn’t need AI models that can quote Shakespeare, it needs AI models that offer transparency, trust and, most importantly, fairness. The way to achieve this is to develop small, highly tuned language models, trained on financial services data, vetted by financial services experts for specific financial services use cases.

“FinLLM’s goal is to set a new standard for the controlled, responsible and ethical adoption of generative AI, outperforming all other generic models in our selected financial services use cases.”

Robin Scher, head of fintech investment at Lloyds Banking Group, says the development programme offers a “massive opportunity” for the financial services industry by streamlining operations and improving customer experience.

“We look forward to supporting Aveni’s growth as we invest in their vision of developing FinLLM together with partners. Our collaboration aims to establish Aveni as a forerunner in AI adoption in the industry, while maintaining a focus on responsible use and customer centricity,” he said.

Source

Fintech

Fairexpay: Risk consultancy White Matter Advisory acquires 90% stake in fintech Fairexpay

Published

6 months ago

29 July, 2024

FinCrypto Staff

Treasury Risk Consulting Firm White Matter Alert On Monday he announced the acquisition of a 90% stake in the fintech startup Fair payment for an undisclosed amount. The acquisition will help White Matter Advisory expand its portfolio in the area of cross-border remittance and fundraising services, a statement said. White Matter Advisory, which operates under the name SaveDesk (White Matter Advisory India Pvt Ltd), is engaged in the treasury risk advisory business. It oversees funds under management (FUM) totaling $8 billion, offering advisory services to a wide range of clients.

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White Matter Advisory, based in Bangalore, helps companies navigate the complexities of treasury and risk management.

Fairexpay, authorised by the Reserve Bank of India (RBI) under Cohort 2 of the Liberalised Remittance Scheme (LRS) Regulatory Sandbox, boasts features such as best-in-class exchange rates, 24-hour processing times and full security compliance.

“With this acquisition, White Matter Advisory will leverage Fairexpay’s advanced technology platform and regulatory approvals to enhance its services to its clients,” the release reads.

The integration of Fairexpay’s capabilities should provide White Matter Advisory with a competitive advantage in the cross-border remittance and fundraising market, he added.

The release also states that by integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.

Source

Fintech

Rakuten Delays FinTech Business Reorganization to 2025

Published

6 months ago

29 July, 2024

FinCrypto Staff

Rakuten (Japan:4755) has released an update.

Rakuten Group, Inc. and Rakuten Bank, Ltd. announced a delay in the reorganization of Rakuten’s FinTech Business, moving the target date from October 2024 to January 2025. The delay is to allow for a more comprehensive review, taking into account regulatory, shareholder interests and the group’s optimal structure for growth. There are no anticipated changes to Rakuten Bank’s reorganization objectives, structure or listing status outside of the revised timeline.

For more insights on JP:4755 stock, check out TipRanks Stock Analysis Page.

Source

Fintech

White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay

Published

6 months ago

29 July, 2024

FinCrypto Staff

White Matter Advisory Acquires 90% Stake in Fintech Startup Fairexpay

You are reading Entrepreneur India, an international franchise of Entrepreneur Media.

White Matter Advisory, which operates under the name SaveDesk in India, has announced that it is acquiring a 90% stake in fintech startup Fairexpay for an undisclosed amount.

This strategic move aims to strengthen White Matter Advisory’s portfolio in cross-border remittance and fundraising services.

By integrating Fairexpay’s advanced technology, White Matter Advisory aims to offer seamless and convenient cross-border payment solutions, providing customers with secure options for international money transfers.

White Matter Advisory, known for its treasury risk advisory services, manages funds under management (FUM) totaling USD 8 billion.

Founded by Bhaskar Saravana, Saurabh Jain, Kranthi Reddy and Piuesh Daga, White Matter Advisory helps companies effectively manage the complexities of treasury and risk management.

The SaveDesk platform offering includes a SaaS-based FX market data platform with real-time feeds for over 100 currencies, bank cost optimization services, customized treasury risk management solutions, and compliance guidance for the Foreign Exchange Management Act (FEMA) and other trade regulations.

Fairexpay is a global aggregation platform offering competitive currency exchange rates from numerous exchange partners worldwide. Catering to both private and corporate customers, Fairexpay provides seamless money transfer solutions for education, travel and immigration, as well as simplifying cross-border payments via API and white-label solutions for businesses. Key features include competitive currency exchange rates, 24-hour processing times, extensive currency coverage of over 30 currencies in more than 200 countries, and secure, RBI-compliant transactions.

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