FinTech Weekly - FinTech's AI Awakening - Issue #471

Robert Greifeld, former Nasdaq Chairman and CEO, believes the excitement surrounding artificial intelligence is understated. He discusses the future of AI, implying that its potential impact is greater than currently recognized.

The International Association of Crypto-Economy and Artificial Intelligence has been established in Kyrgyzstan, supported by the Russian Association of Crypto-Economy, Artificial Intelligence and Blockchain (RAKIB), TASS reports. RAKIB, which unites blockchain market participants and investors, aims to integrate blockchain technologies into the economy and legalize electronic currencies. Alexander Brazhnikov, RAKIB’s executive director, announced at the Kazan Crypto-forum that the new association will focus on digital security, cross-border payments, and project creation. Officially registered a week ago, the association's headquarters will be in Bishkek. Brazhnikov mentioned potential cooperation from various countries, with over 15 nations expected to join by the end of 2024.

Banks and investment firms in the European Union must uphold boardroom responsibility and their legal obligation to protect customers when using artificial intelligence (AI), the bloc's securities watchdog, the European Securities and Markets Authority (ESMA), stated in its first AI-related announcement. On Thursday, ESMA outlined how financial firms within the 27-country bloc can integrate AI into daily operations while complying with the EU's MiFID securities law.

iBind Systems, a FinTech startup in Bangalore, India, announced a collaboration with Google Cloud to modernize onboarding for banks and financial institutions. By integrating iBind’s corporate banking SaaS product with Google Cloud’s generative AI technologies, the partnership aims to streamline onboarding and enhance risk assessment for corporate banking. A key objective is to introduce the Entity Digital Locker within iBind’s Corporate Identity Platform, offering solutions like KYC, anti-money laundering, entitlement management, credit assessment, and digital signatures, thereby simplifying secure data-sharing and access to financial services.

Artificial Intelligence (AI) is revolutionizing the financial technology (fintech) sector, enabling rapid and precise analysis of vast data sets. This transformative technology brings unparalleled opportunities for innovation, efficiency, and improved customer experiences. The article delves into AI applications in fintech and the ethical considerations surrounding its implementation.

Adam Baldwin, Head of Digital Advisory (Legal, Regulatory & Compliance) at BNP Paribas, suggests that employing AI in client risk profiling and customer support models can enhance compliance in the fintech sector.

The Generative AI in Fintech market is projected to grow from US$1.12 billion in 2023 to US$4.35 billion by 2028, with a CAGR of 31.26%. As financial institutions adapt to the digital landscape, generative AI offers innovative solutions for operational efficiency, decision-making, and personalized customer experiences. Leveraging advanced algorithms and extensive datasets, generative AI helps automate operations, reduce risk, identify next-best actions, and expand market share. This article examines the future of generative AI in fintech and the evolving trends shaping the market.