AI New Revenue Streams - Issue #450 January 11th, 2024

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Welcome to FinTech Weekly, where we delve into the transformative world of financial technology. This edition highlights the pivotal role of Artificial Intelligence in reshaping finance, from enhancing security to navigating regulatory complexities. We showcase how both industry giants and emerging startups leverage AI to create new revenue streams and redefine customer experiences. In these pages, you'll find a blend of innovation, challenges, and opportunities that mark the current FinTech landscape. Join us in exploring these exciting developments and stay informed with the latest trends and insights. This and much more in this number of FinTech Weekly: discover top fintech news and events and stay ahead of the competition!

Top Stories

Top Events

Podcasts and Videos

    Yvonne Ng, Regional Director APAC at Elliptic, emphasizes the critical need for collaboration between traditional financial institutions and crypto-native players at the Singapore FinTech Festival (SFF). Organized by the Monetary Authority of Singapore (MAS), Elevandi, and Constellar, in partnership with The Association of Banks in Singapore (ABS), SFF serves as a key platform for global FinTech communities to interact and tackle challenges at the intersection of financial services, public policy, and technology.



    Researchers Georg Wenzel and Adam Jatowt from the University of Innsbruck, Austria, have advanced the field of AI with their method for assessing an AI system's understanding of 'temporal validity.' This breakthrough is particularly significant for the fintech sector's use of generative AI products like ChatGPT. Temporal validity is the concept of how relevant one statement is to another over time, crucial for predicting time-sensitive information. Their research, detailed in the pre-print paper 'Temporal Validity Change Prediction,' showcases an AI's ability to determine the time-based relevance of statements, using examples like a person reading a book on a bus. This innovation emphasizes AI's evolving role in accurately processing and predicting time-related data.




    The fintech technologies market is poised for remarkable growth, with a projected CAGR of 24.79% through 2032, expanding from USD 136.73 billion to an impressive USD 1,252.16 billion. This surge is primarily driven by the accelerated adoption of advanced technologies by banks and insurance companies, replacing outdated systems. A significant factor contributing to this growth is the increasing number of collaborations between financial institutions and national authorities, signaling a robust shift towards embracing innovative financial solutions. The industry's active exploration of Decentralized Finance (DeFi) platforms further underscores this transformative phase in the fintech sector.

    SMEs, forming the backbone of many global economies through significant contributions to employment and economic growth, are now at the forefront of adopting sustainable practices in response to environmental challenges. However, SMEs traditionally face hurdles in accessing green financial services necessary for funding eco-friendly initiatives. Fintechs are emerging as a vital solution in this regard, enhancing SMEs' access to these essential financial services. This role is increasingly crucial in ensuring sustainable development and addressing climate change. Fintech, or financial technology, encompasses technologies aimed at making financial services more efficient and effective. Fintech companies use technology to offer solutions that improve various financial industry aspects, including banking, investing, payments, insurance, and lending, thereby playing a pivotal role in the green transformation of SMEs.

    In a recent PYMNTS survey, industry executives emphasized the growing influence of Artificial Intelligence (AI) in the 2023 FinTech sector, with Mangopay CEO Romain Mazeries highlighting AI's crucial role in 2024. AI is set to enhance financial decision-making, risk management, and operational efficiency, with applications in credit assessment and robo-advisory services. Additionally, the trend of embedding financial solutions into non-financial products is on the rise, especially in eCommerce, driven by Banking-as-a-Service and Wallet-as-a-Service models. Moreover, the FinTech industry is increasingly focusing on sustainability, with initiatives for eco-friendly digital payment solutions and commitments to reduce environmental impacts.