Generative AI will completely transform FinTech and Banking over the next 3 years 🤖🏦; Coinbase moves into the asset management business 😳
FinTech is Eating the World, 6 March
Hey Everyone,
Happy Monday! Today’s issue is a very special one and I’ve been looking forward to it for quite some time. We’re going to take a deep dive into how generative AI will transform FinTech and Banking over the next 3 years (verticals that will feel the greatest impact from AI, the most promising use cases & more!), and look at Coinbase that just moved into the asset management business (why it’s a big move & how it relates to their “Master Plan”). Let’s jump straight into the fascinating stuff 🌶
Generative AI will completely transform FinTech and Banking over the next 3 years 🤖🏦
Pulse check ⌚️ ChatGPT, a viral generative AI-powered conversational chatbot developed by OpenAI, is dominating headlines in 2023. So is AI as such.
Yet, so far, most artificial intelligence applications have been tailored around the systems that can generate artificial data, images, videos, speech, etc. However, given how rapidly technology evolves, it’s only a matter of time until every industry is transformed and the way financial institutions operate is revolutionized forever.
Let’s take a closer look at this fascinating development.
Status quo 📇 In order not to get lost in translation, let’s remember that generative AI refers to a category of artificial intelligence (AI) algorithms that generate new outputs based on the data they have been trained on.
Currently, the use of AI in banking and FinTech can be pretty much summarised below:
Also, major banks like JPMorgan JPM 0.00%↑, Bank of America BAC 0.00%↑, Citi C 0.00%↑, Goldman Sachs GS 0.00%↑, and Wells Fargo WFC 0.00%↑ recently banned using it for business purposes, as reported by Bloomberg.
Nevertheless, some of them have been actively implementing AI in their business. Go deeper and learn more here in case you missed it:
JPMorgan is leading the way in the adoption of AI in banking 🤖🏦
Wells Fargo wants to do what other banks are still ignoring 🏦
American Express and Microsoft want to disrupt business travel expense reporting with AI 🤖
Show me the money 💸 As the industry figures out how to use generative AI safely and effectively, let’s dive deeper into how the technology can transform banking and FinTech.
Below are the verticals that will feel the greatest impact from AI, the most promising use cases over the next 3 years, areas where AI won’t be effective + how companies can leverage the potential of scaling AI use cases.