Finnovation
16 Jan 2024 13:00h - 13:45h
Table of contents
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Knowledge Graph of Debate
Session report
Full session report
Ricardo Bonilla González
Regulations are considered necessary to manage the risks associated with technological advancements in the financial services sector, particularly with the increasing shift from traditional cash transactions to digital currencies. This shift has created a need for regulatory safeguards to prevent fraudulent activities commonly associated with digital currencies.
Furthermore, it is argued that central banks should play a vital role in regulating cryptocurrencies, as the regulation of these digital assets is viewed as a pressing issue. The growing popularity of cryptocurrencies poses challenges and risks that require attention and regulation from central banks.
However, there is a concern that regulators often lag behind in adapting to new technologies, specifically in the case of regulating artificial intelligence (AI). The rapid pace at which AI technology is advancing far exceeds the ability of regulators to adapt their regulatory frameworks. This presents a significant hurdle in effectively regulating AI to ensure accountability and manage potential risks.
Additionally, recruiting the right staff for regulating AI is also a challenge. Finding individuals who can keep up with the fast-paced nature of AI and think creatively is a complex task. This highlights the need for regulators to address the challenges of hiring and retaining personnel with the necessary skills and knowledge to effectively regulate AI.
On a positive note, the emergence of fintech companies is seen as a transformative development in the financial services sector. These companies are taking on the responsibility of providing citizens worldwide with access to bank accounts. By breaking paradigms and reaching out to offer banking services, fintech operators are enhancing financial inclusion and access to credit, particularly for women-led enterprises.
Furthermore, advancements in technology are making financial education and services more accessible. Individuals now have access to a wider range of financial services and educational resources, enabling them to make direct transactions for products and access larger credit amounts. This increase in accessibility expands financial opportunities, especially for women.
In conclusion, regulations are necessary to address the risks associated with technological advancements in the financial services sector. Central banks should play a role in regulating cryptocurrencies, while addressing the challenges faced in regulating AI is crucial. The emergence of fintech companies and advancements in technology are positively impacting financial inclusion, access to credit, and financial education.
Teresa Clarke
During the analysis, several key points were discussed by the speakers. Firstly, Teresa Clarke expressed her belief that the development of a financial sector tool would take Zoom’s AI functionalities to the next level. She commended the progressive innovation in financial sector tools and highlighted their potential.
Moreover, the new tool, aligned with SDG 9: Industry, Innovation, and Infrastructure, was described as having the capability to present various scenarios live during investment committee meetings. It was also said to enable the execution of investment decisions on a single interface. This functionality was seen as a valuable asset in the financial sector.
In relation to savings accounts, Raisin, an online banking platform, was praised for its ability to maximize returns. With management of 60 billion euros and a focus on searching for the best interest rates available, Raisin was highlighted as a leading platform in this area.
The importance of innovation in the financial services sector was stressed, with a specific emphasis on fraud prevention, detection, credit scoring, and personalized banking services. Charlotte Hogg discussed these aspects as key areas of innovation within the sector.
Regulation in the financial services sector emerged as a critical topic of discussion. It was acknowledged that regulating innovation was crucial for protection against associated risks. Regulators were found to face the challenge of balancing financial stability, competition, and consumer protection. There was also a suggestion that regulators should allow for developments while remaining conscious of risks rather than eliminating them. Additionally, their approach of monitoring and engaging in dialogue with the industry was considered more productive.
Notably, regulators were also accused of not being able to keep up with the private sector and possessing a poor understanding of the sector they regulate. This criticism highlighted a potential gap in knowledge and competence between regulators and the private sector.
The analysis brought attention to interesting use cases from the London Stock Exchange Group, Raisin, and Visa. These use cases showcased innovative approaches within the financial sector and were appreciated by Teresa Clarke.
Furthermore, Teresa Clarke emphasized the importance of achieving 100% accuracy in algorithms for digital transformation to be successful. She stressed the need for engagement between the private sector and government in order to effectively navigate the challenges associated with the transformation.
Data transparency and the use of a common language between stakeholders were also highlighted by Teresa Clarke as essential for achieving proper outcomes. Transparency was seen as a means of ensuring that consumers understand where data has come from, while a common language would facilitate effective communication among all parties involved.
In conclusion, the analysis revealed various insights and perspectives on the development of financial sector tools, the importance of innovation in the financial services sector, the challenges faced by regulators, and the significance of achieving accuracy and transparency in digital transformation. The speakers provided valuable insights, highlighting the need for continuous innovation and collaboration among stakeholders to drive positive change in the financial industry and beyond.
Charlotte Hogg
During the discussion, the speakers touched upon a variety of topics pertaining to innovation, technology, regulation, and the role of financial services in society. One key point that emerged was the importance of continuous and incremental innovation within the financial services sector. The speakers acknowledged that innovation in this industry typically occurs in small steps over time, rather than through radical and sudden changes. They cited contactless payment as an example of an innovation that was initially considered radical but has now become commonplace.
The use of artificial intelligence (AI) and machine learning for fraud prevention was also highlighted as a significant area of innovation. Visa, for instance, has been utilising various forms of AI to make rapid decisions about transaction validity within a mere five milliseconds for 31 years, showcasing the potential of these technologies in combating fraud.
Flexibility in technical standards was another key theme that emerged during the discussion. The speakers argued that technical standards should be adaptable to changes and should not hinder innovation. They expressed concerns about the rigidity of standards, citing the example of the contactless limit set at 50 euros in Europe under the Payment Services Directive 2 (PSD2). They suggested that having a more flexible standard, capable of adjusting according to outcomes such as inflation, could have prevented the fixed limit from becoming outdated.
The impact of public policy on innovation was also discussed. The speakers expressed a negative sentiment towards policies that focus excessively on technical standards instead of desired outcomes. They argued that an outcomes-based approach, rather than a rigid focus on technical standards, could foster innovation in both the public and private sectors. They emphasised the need for collaboration between regulators and the private sector, as well as ongoing dialogue and openness to evolution as technology advances.
Digitization was another significant theme explored during the discussion. The speakers stressed the importance of digitising small businesses for global growth. Visa is committed to helping digitise 50 million small businesses worldwide in 2020 and has already surpassed this target. The impact of digitalisation on microbusinesses was also highlighted, with an emphasis on partnerships and collaboration between governments, local banks, and small businesses. They cited examples from Poland where successful efforts have been made to digitise sellers, resulting in increased accessibility and reduced costs.
The unique perspectives and contributions of women in the fintech industry were also acknowledged. The speakers noted that female entrepreneurs in the sector have introduced innovative ideas, such as dependent cards for children and financial services for the aging population. Visa has actively supported women-owned businesses and invests in promoting the digital space for women. The speakers expressed a positive sentiment towards enhancing women’s involvement in the tech and fintech fields.
In conclusion, the discussion encompassed a wide array of topics related to innovation, technology, regulation, and the role of financial services. The speakers stressed the importance of continuous and incremental innovation, the use of AI and machine learning for fraud prevention, the need for flexible technical standards, and the impact of public policy on innovation. They also highlighted the significance of collaboration between regulators and the private sector, the digitisation of small businesses, and the unique contributions of women in the fintech industry. The speakers concluded by emphasising the importance of digitalisation and partnerships in supporting successful microbusinesses.
David Schwimmer
The London Stock Exchange Group (LSEG) is embracing the incorporation of artificial intelligence (AI) across various aspects of its business operations. LSEG has been actively working with AI for a long time and is now focused on integrating it into different areas of its operations. One of the key areas of AI implementation is generative AI, which has generated much excitement within the organisation. The developments in generative AI have been a source of considerable interest for LSEG over the past year.
LSEG has also formed a long-term partnership with Microsoft, a leading technology company. This partnership, which was announced a year ago, involves Microsoft acquiring a 4% stake in LSEG. One of the significant outcomes of this collaboration is the joint development of products that embed data and analytics into Microsoft Teams and 365. These products aim to provide users with enhanced capabilities such as accessing real-time financial data, executing investments, and evaluating different financial scenarios, all in one user-friendly interface. By integrating AI functionality into these products, LSEG is striving to build more intuitive and efficient financial tools.
David Schwimmer, the CEO of LSEG, is a vocal advocate for the development and use of AI-supported financial tools. He highlights the potential of AI to enhance financial workflows, particularly in terms of providing accurate and verifiable data. Schwimmer emphasises the importance of accuracy in AI applications within the financial sector, stating that a 90% or 95% accuracy rate is not sufficient, as 100% accuracy is expected.
Verifiable data is a crucial component for correct AI functionality, and Schwimmer emphasises the need to ensure data reliability and auditing systems to track the data’s origin. He views the integration of AI benefits with the assurance of minimal risk as essential and emphasizes accurate, verifiable data as an important capability for gaining clients’ confidence in AI-driven results.
Regarding data transparency in AI, Schwimmer believes that it should be regulated with proper guardrails. He acknowledges the importance of both government regulation and commercial competition in managing data transparency in AI. Schwimmer underlines the users’ preference for accurate and verifiable data, which creates a competitive dynamic. However, he also warns against premature regulatory restrictions and advocates for finding the right balance between regulation and fostering innovation in the dynamic and evolving AI landscape.
In addition to AI integration, LSEG is also focusing its efforts on developing a regulated digital market infrastructure. This infrastructure aims to support various aspects of financial markets, including asset tokenisation, trading, settlement, and custody. It is designed to be flexible and efficiently accommodate different asset classes. Discussions with regulators worldwide are underway to ensure compliance and effective regulatory oversight for this digital market infrastructure.
Schwimmer expresses a preference for a regulated digital market infrastructure over existing largely unregulated cryptocurrency platforms. He highlights the importance of regulatory measures for the new infrastructure and stresses ongoing discussions with regulators globally.
In conclusion, the London Stock Exchange Group is at the forefront of incorporating AI into its business operations. Through partnerships with companies like Microsoft, LSEG is developing AI-supported financial tools that aim to enhance workflows and provide users with more intuitive and efficient financial solutions. The organisation’s CEO, David Schwimmer, advocates for accuracy, verifiable data, and the regulation of AI to ensure transparency and foster a competitive dynamic. Additionally, LSEG is actively building a regulated digital market infrastructure to support asset tokenisation and trading while emphasising the need for effective regulatory oversight in the digital market space.
Audience
The AI for Good Global Summit convened experts from diverse backgrounds to discuss key issues concerning Zanzibar’s economic future and the importance of fostering comprehensive discussions on artificial intelligence (AI). A primary focus was placed on Zanzibar’s ambition to enhance its economic prosperity through the adoption of the digital economy. Zanzibar, an island located off the coast of mainland Tanzania, recently adopted the blue economy policy, which prioritizes sustainable utilization of ocean resources. Furthermore, the integration of AI trends in their discussions underscores their commitment to leveraging emerging technologies.
However, participants expressed concern that AI discussions in Zanzibar are insufficient in scope and fail to generate adequate public interest. The Minister for Investment in the President’s Office of Zanzibar’s Revolutionary Government voiced these concerns, stressing the importance of broader engagement and public involvement in AI-related conversations. There is an understanding that generating widespread interest and expediting AI-related discussions is pivotal in Zanzibar’s digital transformation and future economic growth. This viewpoint aligns with the Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure, which emphasizes the significance of fostering inclusive and sustainable technological advancements.
Gender disparity in technology was another critical issue addressed during the summit. Presenters highlighted the fact that women are lagging behind in terms of technological progress and that the fintech sector is not adequately serving their needs. Bridging the gender divide in technology is of utmost importance as it aligns with SDG 5: Gender Equality and SDG 10: Reduced Inequalities. The central argument posited is that women should be at the forefront of fintech and technological advancements, and their active participation and representation are vital in achieving gender equality.
Additionally, speakers stressed the significance of incorporating marginalized groups into the financial system. They acknowledged the challenges faced by marginalized communities, such as farmers and fisherfolk, and emphasized the necessity of providing them with inclusive financial tools. This objective corresponds to SDG 1: No Poverty and SDG 8: Decent Work and Economic Growth, as an inclusive financial system can help uplift marginalized groups from poverty and foster sustainable economic progress.
In conclusion, the AI for Good Global Summit delved into crucial topics that are pivotal for Zanzibar’s economic prosperity, expanded AI discussions, the goal of addressing the gender gap in technology, and the necessitation of including marginalized groups in the financial system. Participants emphasized Zanzibar’s embrace of the digital economy, the generation of widespread public interest in AI discussions, empowering women in fintech and technology, and ensuring the financial system’s inclusivity towards marginalized communities. These insights serve as catalysts for sustainable development and the advancement of SDG objectives.
Tamaz Georgadze
Raisin is a platform that focuses on building marketplaces for bank savings, providing customers with the opportunity to optimize their interest rates and diversify their savings across multiple institutions. This not only allows customers to potentially earn higher returns but also helps them spread their risk by distributing funds across different banks.
Raisin targets the mid-size banking sector, which often lacks the resources and capabilities to compete in today’s modern infrastructure. Raisin supports these banks by helping them with funding, cross-border operations, and multilingual call centers. This partnership allows mid-size banks to access the expertise needed to compete effectively.
In addition to serving the mid-size banking sector, Raisin also delivers its products directly to customers and through partnerships with financial institutions such as Aviva, Deutsche Bank, and AJ Bell. This demonstrates the trust these institutions have in Raisin’s ability to provide value-added solutions.
Tamaz Georgadze’s company has been in operation for 10 years and manages €60 billion in assets. Raisin can offer its clients better rates compared to traditional banks. Georgadze explains that Raisin has a higher chance of offering competitive rates due to its ability to optimize rates for its clients.
Regulators face challenges in balancing financial stability, competition, and consumer protection. Excessive risk aversion can hinder innovation. A constructive dialogue between regulators and the industry is crucial for progress and effective risk management.
The public sector faces difficulties in attracting talent, especially compared to the private sector. This lack of mobility further worsens the issue. Making public sector jobs more appealing is vital to attract individuals with the required knowledge and expertise for effective regulation.
Research conducted by Georgadze’s firm reveals that women tend to require more confidence and knowledge before making financial decisions. Providing appropriate information and financial education is crucial to empower marginalized individuals and ensure financial accessibility is accompanied by informed choices.
In summary, Raisin fills a gap in the banking industry, particularly for mid-size banks. It offers customers the opportunity to optimize rates and diversify savings. Raisin serves the mid-size banking sector and partners with established institutions. The platform can offer better rates than traditional banks. The industry faces challenges in regulation and talent attraction, particularly in the public sector. Additionally, the financial decision-making behaviors of individuals differ, with women requiring more confidence and knowledge.
Speakers
A
Audience
Speech speed
160 words per minute
Speech length
531 words
Speech time
199 secs
Arguments
Zanzibar’s future economic prosperity is tied to the digital economy
Supporting facts:
- Zanzibar is an island off of the coast of mainland Tanzania
- They’ve recently adopted the blue economy policy
- AI trends are becoming prominent in their discussions
Topics: Emerging economy, Digital economy, Artificial Intelligence
The speaker is concerned that the AI discussion in Zanzibar is not as broad as it should be, and does not generate enough public interest
Supporting facts:
- The speaker is the Minister for Investment in the President’s Office, Revolutionary Government of Zanzibar
- Discussion on AI trends is key in their current policy
Topics: AI Interest, Public engagement, AI implementation
Need to address the gender divide in technology
Supporting facts:
- Gender divide in technology
- Women being left behind in tech advancements
- Fintech not delivering for women
Topics: Gender Divide, Technology, Fintech
Need to include marginalized groups like farmers, fisher folks, etc. into inclusive financial system
Supporting facts:
- The speaker works in a development bank and deals with marginalized communities.
- Charlotte Hogg mentioned there should be a language for all.
Topics: Financial Innovation, Inclusive Finance, Marginalized Groups
Report
The AI for Good Global Summit convened experts from diverse backgrounds to discuss key issues concerning Zanzibar’s economic future and the importance of fostering comprehensive discussions on artificial intelligence (AI). A primary focus was placed on Zanzibar’s ambition to enhance its economic prosperity through the adoption of the digital economy.
Zanzibar, an island located off the coast of mainland Tanzania, recently adopted the blue economy policy, which prioritizes sustainable utilization of ocean resources. Furthermore, the integration of AI trends in their discussions underscores their commitment to leveraging emerging technologies. However, participants expressed concern that AI discussions in Zanzibar are insufficient in scope and fail to generate adequate public interest.
The Minister for Investment in the President’s Office of Zanzibar’s Revolutionary Government voiced these concerns, stressing the importance of broader engagement and public involvement in AI-related conversations. There is an understanding that generating widespread interest and expediting AI-related discussions is pivotal in Zanzibar’s digital transformation and future economic growth.
This viewpoint aligns with the Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure, which emphasizes the significance of fostering inclusive and sustainable technological advancements. Gender disparity in technology was another critical issue addressed during the summit. Presenters highlighted the fact that women are lagging behind in terms of technological progress and that the fintech sector is not adequately serving their needs.
Bridging the gender divide in technology is of utmost importance as it aligns with SDG 5: Gender Equality and SDG 10: Reduced Inequalities. The central argument posited is that women should be at the forefront of fintech and technological advancements, and their active participation and representation are vital in achieving gender equality.
Additionally, speakers stressed the significance of incorporating marginalized groups into the financial system. They acknowledged the challenges faced by marginalized communities, such as farmers and fisherfolk, and emphasized the necessity of providing them with inclusive financial tools. This objective corresponds to SDG 1: No Poverty and SDG 8: Decent Work and Economic Growth, as an inclusive financial system can help uplift marginalized groups from poverty and foster sustainable economic progress.
In conclusion, the AI for Good Global Summit delved into crucial topics that are pivotal for Zanzibar’s economic prosperity, expanded AI discussions, the goal of addressing the gender gap in technology, and the necessitation of including marginalized groups in the financial system.
Participants emphasized Zanzibar’s embrace of the digital economy, the generation of widespread public interest in AI discussions, empowering women in fintech and technology, and ensuring the financial system’s inclusivity towards marginalized communities. These insights serve as catalysts for sustainable development and the advancement of SDG objectives.
CH
Charlotte Hogg
Speech speed
199 words per minute
Speech length
1987 words
Speech time
599 secs
Arguments
Innovation in financial services often happens incrementally and continuously
Supporting facts:
- Contactless payment was radical when introduced but now is common, The New York metro was behind London in rolling out contactless.
Topics: Financial Services, innovation
Visa uses machine learning and AI for fraud prevention
Supporting facts:
- Visa has been using forms of AI to make a decision about transaction validity in five milliseconds for 31 years
Topics: Artificial Intelligence, Machine Learning, Fraud Prevention
Technical standards should be flexible and able to adapt to changes such as inflation
Supporting facts:
- In Europe under PSD2, the contactless limit is set in legislation at 50 euros, this was decided in the mid-2000s
- Having a flexible standard that could change with the outcomes, could have prevented the set limit of 50 euros
Topics: Technical Standards, PSD2, Contactless Payment
Visa does not credit score, but instead uses fraud scoring
Supporting facts:
- Visa does not lend money, hence does not credit score
- They try to balance a customer’s desire to transact and the risk of that transaction being fraudulent
Topics: Credit Scoring, Fraud
Engagement and ongoing dialogue with regulators is necessary
Supporting facts:
- This space lacks clear answers, implying the necessity of collaboration
- There’s need for private-public engagement, and an openness to evolve as technology does
Topics: Regulation, Fintech
It is risky not to take advantage of new technological opportunities for fear of negative outcomes
Supporting facts:
- There are real opportunities that can be taken advantage of
Topics: Innovation, Technology
Evolution and continuous learning are crucial aspects of improving the fraud score accuracy
Supporting facts:
- If there is something in the fraud score that may not be accurate, then it’s something that you learn and fix over time
Topics: Fraud Score, Accuracy, Evolution, Learning
Regulators and governments are very focused on the outcomes for citizens.
Supporting facts:
- Regulators need to learn the technology but ultimately decisions will be based on society’s needs and desires.
Topics: AI, Regulators, Government, Citizen’s Outcomes
AI is for everyone, not just for regulators.
Supporting facts:
- Decisions on AI and technology should be made in understandable language so everyone can engage and participate.
Topics: AI, Regulators, Public Participation
Regulators do not need to be technically expert to engage constructively.
Supporting facts:
- Regulators have expertise in outcomes-based regulation which they can apply even without complete technical knowledge.
Topics: Regulators, Technical Expertise, Constructive Engagement
Importance of digitizing small businesses for global growth
Supporting facts:
- Committed to help digitize 50 million small businesses around the world in 2020
- Has already exceeded the target of digitizing small businesses
Topics: Digitization, Small businesses, Global Trade
Women have a unique perspective on financial services
Supporting facts:
- Charlotte has seen interesting innovations in the fintech sector initiated by women, like dependent cards for children.
- Female entrepreneurs will likely innovate for the aging population
Topics: Gender Divide, Financial Services, Women in Tech
Visa’s foundation is focused on investing in women-owned businesses and promoting the digital space for women
Supporting facts:
- The foundation supports female entrepreneurs selling their products online.
- Visa was the first company to sponsor women’s football in Europe.
Topics: Fintech, Women Entrepreneurs, Digital Economy
Digitalization and partnerships are key in supporting successful microbusinesses
Supporting facts:
- Example of Poland where they have been working with the government to digitalize sellers.
- Use of digital infrastructure in partnership with local bank industry and the government.
- Phones are becoming platforms for payment terminals, reducing cost and increasing accessibility.
Topics: Digitalization, Partnerships, Microbusinesses, Government cooperation, Banking industry
Report
During the discussion, the speakers touched upon a variety of topics pertaining to innovation, technology, regulation, and the role of financial services in society. One key point that emerged was the importance of continuous and incremental innovation within the financial services sector.
The speakers acknowledged that innovation in this industry typically occurs in small steps over time, rather than through radical and sudden changes. They cited contactless payment as an example of an innovation that was initially considered radical but has now become commonplace.
The use of artificial intelligence (AI) and machine learning for fraud prevention was also highlighted as a significant area of innovation. Visa, for instance, has been utilising various forms of AI to make rapid decisions about transaction validity within a mere five milliseconds for 31 years, showcasing the potential of these technologies in combating fraud.
Flexibility in technical standards was another key theme that emerged during the discussion. The speakers argued that technical standards should be adaptable to changes and should not hinder innovation. They expressed concerns about the rigidity of standards, citing the example of the contactless limit set at 50 euros in Europe under the Payment Services Directive 2 (PSD2).
They suggested that having a more flexible standard, capable of adjusting according to outcomes such as inflation, could have prevented the fixed limit from becoming outdated. The impact of public policy on innovation was also discussed. The speakers expressed a negative sentiment towards policies that focus excessively on technical standards instead of desired outcomes.
They argued that an outcomes-based approach, rather than a rigid focus on technical standards, could foster innovation in both the public and private sectors. They emphasised the need for collaboration between regulators and the private sector, as well as ongoing dialogue and openness to evolution as technology advances.
Digitization was another significant theme explored during the discussion. The speakers stressed the importance of digitising small businesses for global growth. Visa is committed to helping digitise 50 million small businesses worldwide in 2020 and has already surpassed this target. The impact of digitalisation on microbusinesses was also highlighted, with an emphasis on partnerships and collaboration between governments, local banks, and small businesses.
They cited examples from Poland where successful efforts have been made to digitise sellers, resulting in increased accessibility and reduced costs. The unique perspectives and contributions of women in the fintech industry were also acknowledged. The speakers noted that female entrepreneurs in the sector have introduced innovative ideas, such as dependent cards for children and financial services for the aging population.
Visa has actively supported women-owned businesses and invests in promoting the digital space for women. The speakers expressed a positive sentiment towards enhancing women’s involvement in the tech and fintech fields. In conclusion, the discussion encompassed a wide array of topics related to innovation, technology, regulation, and the role of financial services.
The speakers stressed the importance of continuous and incremental innovation, the use of AI and machine learning for fraud prevention, the need for flexible technical standards, and the impact of public policy on innovation. They also highlighted the significance of collaboration between regulators and the private sector, the digitisation of small businesses, and the unique contributions of women in the fintech industry.
The speakers concluded by emphasising the importance of digitalisation and partnerships in supporting successful microbusinesses.
DS
David Schwimmer
Speech speed
166 words per minute
Speech length
1685 words
Speech time
611 secs
Arguments
The London Stock Exchange Group is working with AI in many areas of its business
Supporting facts:
- London Stock Exchange Group is a global financial markets infrastructure and data company
- It’s one of the world’s leading providers of data and analytics
- They have been working with AI for a long time
Topics: AI, Financial Markets, Business Innovation
LSEG and Microsoft announced a long-term partnership
Supporting facts:
- Microsoft took a 4% stake in LSEG
- The partnership was announced a year ago
Topics: Partnership, Tech industry, Microsoft
They are building significant product together
Supporting facts:
- The product includes embedding of data and analytics and workflow into Microsoft Teams and 365
Topics: Joint venture, Product Development
Implementation of AI functionality
Supporting facts:
- AI functionality is intended to be fully embedded in the product
Topics: Artificial Intelligence, Technology Implementation
Many financial tools used today are clunky and built on old architecture
Supporting facts:
- Many tools have been built on architecture that’s 20 years old
- There are some difficult codes that you have to use
Topics: Financial sector, Technology
They are building a more intuitive financial tool using natural language and generative AI
Supporting facts:
- If you are holding an investment committee meeting on Teams and you want to see different scenarios and you want to evaluate it if the currency moves, you can do that, and there will be AI functionality embedded in that that will pull that up for you live in your investment committee meeting
- you can execute on your investment if it’s a public security, all in that single format and user interface
Topics: Artificial intelligence, Finance
LSEG is developing AI functionality that integrates real-time financial data into workflows
Supporting facts:
- LSEG is one of the leading providers in the world of financial data, analytics, and workflow.
- The generative AI functionality is being built in to pull relevant financial data into conversation or use.
Topics: AI, Financial Data, Workflows
Accuracy is essential in AI applications for the financial sector
Supporting facts:
- In AI applications in finance, 90% or 95% accuracy is not enough, 100% is expected
Topics: Artificial Intelligence, Financial Sector
Correct AI functionality relies heavily on verifiable data
Supporting facts:
- If AI sources questionable data, it leads to problems
- A reliable way to ensure accuracy in AI is to use verifiable data and have an audit system to track where the data comes from
Topics: Artificial Intelligence, Verifiable Data
Interested to talk about digital currency and digital assets issues
Topics: Artificial Intelligence, Digital Currency, Digital Assets
David Schwimmer believes data transparency in AI should be regulated with certain guardrails but also depends on commercial competitive dynamics.
Supporting facts:
- Users would want to use accurate, verifiable data fostering a competitive dynamic.
- He talks about having protections for privacy issues and other aspects.
- Warns about the danger of premature regulatory restrictions in a dynamic space.
Topics: Artificial Intelligence, Data Transparency, Regulation
David Schwimmer believes that financial institutions and regulators should work together in a partnership dynamic
Supporting facts:
- They are heavily regulated in 20+ jurisdictions
- They provide systemic infrastructure for markets and thus attract a lot of regulatory focus
Topics: Financial Regulation, Generative AI
David Schwimmer mentions that there are different levels of conservatism and sophistication among regulators
Topics: Regulatory sophistication, Financial markets
David Schwimmer emphasizes the importance of digitization and digital market infrastructure
Supporting facts:
- One of the things that Schwimmer’s team is building is the digital market infrastructure, which is asset class agnostic
- This infrastructure allows issuance/tokenization, trading, settlement, and custody all in a digital chain
- The infrastructure would support market activity globally in a cloud-based system
- A key aspect of the infrastructure is that it is designed to be regulated, with talks ongoing with various regulators around the world.
Topics: Digitization, Financial Markets, Asset Tokenization, Market Functionality
Report
The London Stock Exchange Group (LSEG) is embracing the incorporation of artificial intelligence (AI) across various aspects of its business operations. LSEG has been actively working with AI for a long time and is now focused on integrating it into different areas of its operations.
One of the key areas of AI implementation is generative AI, which has generated much excitement within the organisation. The developments in generative AI have been a source of considerable interest for LSEG over the past year. LSEG has also formed a long-term partnership with Microsoft, a leading technology company.
This partnership, which was announced a year ago, involves Microsoft acquiring a 4% stake in LSEG. One of the significant outcomes of this collaboration is the joint development of products that embed data and analytics into Microsoft Teams and 365. These products aim to provide users with enhanced capabilities such as accessing real-time financial data, executing investments, and evaluating different financial scenarios, all in one user-friendly interface.
By integrating AI functionality into these products, LSEG is striving to build more intuitive and efficient financial tools. David Schwimmer, the CEO of LSEG, is a vocal advocate for the development and use of AI-supported financial tools. He highlights the potential of AI to enhance financial workflows, particularly in terms of providing accurate and verifiable data.
Schwimmer emphasises the importance of accuracy in AI applications within the financial sector, stating that a 90% or 95% accuracy rate is not sufficient, as 100% accuracy is expected. Verifiable data is a crucial component for correct AI functionality, and Schwimmer emphasises the need to ensure data reliability and auditing systems to track the data’s origin.
He views the integration of AI benefits with the assurance of minimal risk as essential and emphasizes accurate, verifiable data as an important capability for gaining clients’ confidence in AI-driven results. Regarding data transparency in AI, Schwimmer believes that it should be regulated with proper guardrails.
He acknowledges the importance of both government regulation and commercial competition in managing data transparency in AI. Schwimmer underlines the users’ preference for accurate and verifiable data, which creates a competitive dynamic. However, he also warns against premature regulatory restrictions and advocates for finding the right balance between regulation and fostering innovation in the dynamic and evolving AI landscape.
In addition to AI integration, LSEG is also focusing its efforts on developing a regulated digital market infrastructure. This infrastructure aims to support various aspects of financial markets, including asset tokenisation, trading, settlement, and custody. It is designed to be flexible and efficiently accommodate different asset classes.
Discussions with regulators worldwide are underway to ensure compliance and effective regulatory oversight for this digital market infrastructure. Schwimmer expresses a preference for a regulated digital market infrastructure over existing largely unregulated cryptocurrency platforms. He highlights the importance of regulatory measures for the new infrastructure and stresses ongoing discussions with regulators globally.
In conclusion, the London Stock Exchange Group is at the forefront of incorporating AI into its business operations. Through partnerships with companies like Microsoft, LSEG is developing AI-supported financial tools that aim to enhance workflows and provide users with more intuitive and efficient financial solutions.
The organisation’s CEO, David Schwimmer, advocates for accuracy, verifiable data, and the regulation of AI to ensure transparency and foster a competitive dynamic. Additionally, LSEG is actively building a regulated digital market infrastructure to support asset tokenisation and trading while emphasising the need for effective regulatory oversight in the digital market space.
RB
Ricardo Bonilla González
Speech speed
150 words per minute
Speech length
827 words
Speech time
331 secs
Arguments
Regulations are needed to contain the risks posed by technological advances in the financial services sector
Supporting facts:
- A shift from cash to digital currency necessitates regulatory safeguards
- There’s a need for regulation to prevent fraud associated with digital currencies
Topics: Regulation, Fintech, Digital Currency, Crypto assets
Regulators are conservative and lag behind in regulating AI
Supporting facts:
- Regulators are linked to the past, making it difficult for them to adapt to new changes and technologies
- AI is evolving much faster than the pace of regulators
Topics: AI, Regulations, Innovation
Fintech companies are becoming more responsible for giving citizens bank accounts
Supporting facts:
- Nowadays the operators for these kind of technologies, the fintech operators, are reaching out to all citizens in the world
- The women’s banking movement came to a certain degree, to a certain level, but fintechs are breaking paradigms in terms of female funding
Topics: Fintech, Banking, Financial Services
Fintech operators allow small businesses and individuals to access credit
Supporting facts:
- This avocado seller, who could not access credit in the past with banks, now can access credit with a fintech
- There are many, many small businesses led by women who can now access funding, and can access the possibility of selling their wares
Topics: Small Businesses, Credit, Fintech
Financial education and services are becoming more accessible thanks to new technologies
Supporting facts:
- With a bank, for instance, maybe you couldn’t buy avocados in skin, and now you can, and you can pay for that directly
- We’re not only settling for a $300 credit, we’re talking about a $1,000, $2,000 U.S. credit that can be given to women
Topics: Financial Education, Technological Innovation
Report
Regulations are considered necessary to manage the risks associated with technological advancements in the financial services sector, particularly with the increasing shift from traditional cash transactions to digital currencies. This shift has created a need for regulatory safeguards to prevent fraudulent activities commonly associated with digital currencies.
Furthermore, it is argued that central banks should play a vital role in regulating cryptocurrencies, as the regulation of these digital assets is viewed as a pressing issue. The growing popularity of cryptocurrencies poses challenges and risks that require attention and regulation from central banks.
However, there is a concern that regulators often lag behind in adapting to new technologies, specifically in the case of regulating artificial intelligence (AI). The rapid pace at which AI technology is advancing far exceeds the ability of regulators to adapt their regulatory frameworks.
This presents a significant hurdle in effectively regulating AI to ensure accountability and manage potential risks. Additionally, recruiting the right staff for regulating AI is also a challenge. Finding individuals who can keep up with the fast-paced nature of AI and think creatively is a complex task.
This highlights the need for regulators to address the challenges of hiring and retaining personnel with the necessary skills and knowledge to effectively regulate AI. On a positive note, the emergence of fintech companies is seen as a transformative development in the financial services sector.
These companies are taking on the responsibility of providing citizens worldwide with access to bank accounts. By breaking paradigms and reaching out to offer banking services, fintech operators are enhancing financial inclusion and access to credit, particularly for women-led enterprises.
Furthermore, advancements in technology are making financial education and services more accessible. Individuals now have access to a wider range of financial services and educational resources, enabling them to make direct transactions for products and access larger credit amounts. This increase in accessibility expands financial opportunities, especially for women.
In conclusion, regulations are necessary to address the risks associated with technological advancements in the financial services sector. Central banks should play a role in regulating cryptocurrencies, while addressing the challenges faced in regulating AI is crucial. The emergence of fintech companies and advancements in technology are positively impacting financial inclusion, access to credit, and financial education.
TG
Tamaz Georgadze
Speech speed
184 words per minute
Speech length
1659 words
Speech time
542 secs
Arguments
Raisin builds marketplaces for bank savings.
Supporting facts:
- Customers can open one account with Raisin and put their savings into multiple banks.
- Raisin allows customers to optimize their interest rates and diversify across different institutions.
Topics: Banking, Financial Technology, Savings
Raisin serves 95% of the mid-size banking sector.
Supporting facts:
- Mid-size banks lack the capabilities to compete in a modern infrastructure world.
- Raisin helps them with sourcing funding, compliance with cross-border operations, and running call centers in different languages.
Topics: Banking, Business Strategy, Financial Technology
Raisin delivers products both B2C and through partnerships.
Supporting facts:
- Raisin serves customers in the US, UK and Europe.
- Raisin has an API which financial institutions can embed.
- Aviva, Deutsche Bank, and AJ Bell offer third-party savings accounts to their customers through Raisin.
Topics: Business Strategy, Partnerships, Financial Technology
Tamaz Georgadze’s company manages 60 billion euro in assets
Topics: Asset Management, Business Growth
Customers value convenience and peace of mind over getting the absolute highest rate
Supporting facts:
- Customers do not optimize the last 10 or 20 bips
- They want to have the convenience and the peace of mind that they can get very good rates
Topics: Savings account, Customer behaviour
Regulators are in a difficult position due to three competing objectives: financial stability, competition, and consumer protection.
Supporting facts:
- Regulators are judged mainly on financial stability, which can overshadow the other two important aspects of competition and consumer protection.
Topics: Financial Regulation, Competition, Consumer Protection
Excessive risk avoidance by regulators can inhibit innovation and development in the industry.
Supporting facts:
- Some regulators are comfortable with the traditional regulatory system and risk management, which could prevent them from embracing new advancements and technologies.
Topics: Risk Management, Innovation
Regulators need to allow developments, be conscious about risks, and engage in a dialogue with the industry.
Supporting facts:
- Tamaz admire UK regulator’s approach of monitoring developments and outlining potential risks for CEOs and CFOs to be conscious about. This involves a constructive dialogue with the regulator to understand these risks.
Topics: Risk Management, Industry Regulations, Innovation
The public sector’s jobs are not appealing enough to attract the best talent, especially compared to the private sector
Supporting facts:
- Georgadze himself was interested in working for World Bank or IMF as a young man, hence the sector does have elements of attraction
- Regulator roles are not necessarily the most appealing due to the income, transparency issues, potential for mistakes, and public scrutiny
Topics: Regulators, Private sector, Public sector, Job market
There needs to be more mobility between the private and public sectors
Supporting facts:
- The public sector struggles to hire new talent compared to private companies.
- There are ‘cooling down’ rules in Europe that limit the movement between sectors
Topics: Public sector, Private sector, Regulation
Women tend to require more confidence and knowledge before making financial decisions
Supporting facts:
- Research conducted by the speaker’s firm indicated that women are more careful and take more time than men before making a financial decision
- Minimum account opening in his firm is $1
Topics: Financial Decision Making, Gender Issues
Report
Raisin is a platform that focuses on building marketplaces for bank savings, providing customers with the opportunity to optimize their interest rates and diversify their savings across multiple institutions. This not only allows customers to potentially earn higher returns but also helps them spread their risk by distributing funds across different banks.
Raisin targets the mid-size banking sector, which often lacks the resources and capabilities to compete in today’s modern infrastructure. Raisin supports these banks by helping them with funding, cross-border operations, and multilingual call centers. This partnership allows mid-size banks to access the expertise needed to compete effectively.
In addition to serving the mid-size banking sector, Raisin also delivers its products directly to customers and through partnerships with financial institutions such as Aviva, Deutsche Bank, and AJ Bell. This demonstrates the trust these institutions have in Raisin’s ability to provide value-added solutions.
Tamaz Georgadze’s company has been in operation for 10 years and manages €60 billion in assets. Raisin can offer its clients better rates compared to traditional banks. Georgadze explains that Raisin has a higher chance of offering competitive rates due to its ability to optimize rates for its clients.
Regulators face challenges in balancing financial stability, competition, and consumer protection. Excessive risk aversion can hinder innovation. A constructive dialogue between regulators and the industry is crucial for progress and effective risk management. The public sector faces difficulties in attracting talent, especially compared to the private sector.
This lack of mobility further worsens the issue. Making public sector jobs more appealing is vital to attract individuals with the required knowledge and expertise for effective regulation. Research conducted by Georgadze’s firm reveals that women tend to require more confidence and knowledge before making financial decisions.
Providing appropriate information and financial education is crucial to empower marginalized individuals and ensure financial accessibility is accompanied by informed choices. In summary, Raisin fills a gap in the banking industry, particularly for mid-size banks. It offers customers the opportunity to optimize rates and diversify savings.
Raisin serves the mid-size banking sector and partners with established institutions. The platform can offer better rates than traditional banks. The industry faces challenges in regulation and talent attraction, particularly in the public sector. Additionally, the financial decision-making behaviors of individuals differ, with women requiring more confidence and knowledge.
TC
Teresa Clarke
Speech speed
194 words per minute
Speech length
1481 words
Speech time
459 secs
Arguments
Teresa Clarke sees the financial sector tool being developed as the next level to Zoom’s AI functionalities.
Supporting facts:
- Zoom already summarizes meetings using generative AI.
Topics: Financial Sector Tool, AI functionalities, Zoom
Raisin maximizes savings account returns
Supporting facts:
- Raisin manages 60 billion euros at present
- Raisin looks across all the different offerings for the best interest rates
Topics: Raisin, Interest Rates, Savings Account
It’s relevant to hear about innovation in the financial services sector from people who are actually operating in it
Supporting facts:
- Charlotte Hogg spoke about fraud prevention, detection, credit scoring, personalized banking services
Topics: fintech, innovation, financial services sector
Regulating innovation in the financial services sector is crucial for protection against associated risks
Topics: regulation, financial services sector, innovation
Regulators are in a hard place balancing financial stability, competition, and consumer protection
Supporting facts:
- Financial stability hasn’t gone well in the last 20 years
- Avoiding risk kills innovation and development
Topics: Financial Stability, Consumer Protection, Competition
Regulators are often accused of not being able to keep up with the private sector and poorly understanding the sector they regulate
Topics: Financial Regulation, Private Sector
Teresa Clarke appreciated the insights and use cases shared by the panel and found the session to be fascinating.
Supporting facts:
- Mentioned the interesting use cases from London Stock Exchange Group, Raisin and Visa and the presence of a Minister of Finance.
Topics: Finance, Digital Infrastructure, London Stock Exchange Group, Raisin, Visa
Teresa Clarke stressed the need for data transparency and a common language between all stakeholders to achieve proper outcomes.
Supporting facts:
- As she pointed out, ‘One way to accomplish that is to make sure that we use the same language…it’s also quite important for consumers to be able to have access to understanding where the data has come from.’.
Topics: Data Transparency, Governance
Report
During the analysis, several key points were discussed by the speakers. Firstly, Teresa Clarke expressed her belief that the development of a financial sector tool would take Zoom’s AI functionalities to the next level. She commended the progressive innovation in financial sector tools and highlighted their potential.
Moreover, the new tool, aligned with SDG 9: Industry, Innovation, and Infrastructure, was described as having the capability to present various scenarios live during investment committee meetings. It was also said to enable the execution of investment decisions on a single interface.
This functionality was seen as a valuable asset in the financial sector. In relation to savings accounts, Raisin, an online banking platform, was praised for its ability to maximize returns. With management of 60 billion euros and a focus on searching for the best interest rates available, Raisin was highlighted as a leading platform in this area.
The importance of innovation in the financial services sector was stressed, with a specific emphasis on fraud prevention, detection, credit scoring, and personalized banking services. Charlotte Hogg discussed these aspects as key areas of innovation within the sector. Regulation in the financial services sector emerged as a critical topic of discussion.
It was acknowledged that regulating innovation was crucial for protection against associated risks. Regulators were found to face the challenge of balancing financial stability, competition, and consumer protection. There was also a suggestion that regulators should allow for developments while remaining conscious of risks rather than eliminating them.
Additionally, their approach of monitoring and engaging in dialogue with the industry was considered more productive. Notably, regulators were also accused of not being able to keep up with the private sector and possessing a poor understanding of the sector they regulate.
This criticism highlighted a potential gap in knowledge and competence between regulators and the private sector. The analysis brought attention to interesting use cases from the London Stock Exchange Group, Raisin, and Visa. These use cases showcased innovative approaches within the financial sector and were appreciated by Teresa Clarke.
Furthermore, Teresa Clarke emphasized the importance of achieving 100% accuracy in algorithms for digital transformation to be successful. She stressed the need for engagement between the private sector and government in order to effectively navigate the challenges associated with the transformation.
Data transparency and the use of a common language between stakeholders were also highlighted by Teresa Clarke as essential for achieving proper outcomes. Transparency was seen as a means of ensuring that consumers understand where data has come from, while a common language would facilitate effective communication among all parties involved.
In conclusion, the analysis revealed various insights and perspectives on the development of financial sector tools, the importance of innovation in the financial services sector, the challenges faced by regulators, and the significance of achieving accuracy and transparency in digital transformation.
The speakers provided valuable insights, highlighting the need for continuous innovation and collaboration among stakeholders to drive positive change in the financial industry and beyond.