The first Open-Source Financial LLM is here, & it’s a game-changer 🤯; Banks are becoming crypto companies: Deutsche Bank applies for crypto licence 😳; Wise is now about all things money 💸

FinTech is Eating the World, 20 June

Hey Everyone,

Happy Tuesday! Today’s issue is the best one this month so far 😳 We’re looking at the first Open-Source Financial LLM (why it’s a game-changer that will transform finance as we know it), Deutsche Bank that applies for a digital asset license (it’s a massive move & what it has to do with the bull market), and Wise which now is about all things money (Revolut should pay attention!). Let’s jump straight into the hot stuff 🌶

The first Open-Source Financial LLM is finally here, and it’s a game-changer 🤯

The hit news🔥 That was fast! Meet FinGPT, an open-source financial large language model (LLMs) that aims to democratize Internet-Scale financial data, providing researchers and practitioners with accessible resources to develop FinLLMs and build the future of finance. Which is open.

This is a paradigm shift so let’s take a closer look here.

More on this 👉 Large language models (LLMs) have shown massive potential for revolutionizing natural language processing (NLP) tasks in various domains, sparking significant interest in finance.

Yet, accessing high-quality financial data is one of the biggest challenges for financial LLMs (FinLLMs).

While proprietary models like BloombergGPT have taken advantage of their unique data accumulation, such privileged access calls for an open-source alternative to democratize Internet-scale financial data.

ICYMI: ChatGPT for Finance is here 🤯 [a closer look at BloombergGPT]

This is where FinGPT comes into play aiming to disrupt the finance sector.

Data 📊 Unlike proprietary models, FinGPT takes a data-centric approach and focuses on accessible and transparent resources to develop FinLLMs.

The FinGPT pipeline involves the collection of extensive financial data from a wide array of online sources. These include, but are not limited to the following:

• Financial news: websites such as Reuters, CNBC, and Yahoo Finance, among others, are rich sources of financial news and market updates.

• Social media: platforms such as Twitter, Facebook, Reddit, Weibo, and others, offer a wealth of information in terms of public sentiment, trending topics, and immediate reactions to financial news and events.

• Filings: websites of financial regulatory authorities, such as the SEC in the United States, offer access to company filings.

• Trends: websites like Seeking Alpha, Google Trends, and other finance-focused blogs and forums provide access to analysts’ opinions, market predictions, the movement of specific securities or market segments, and investment advice.

The USP 🥊 Potential applications of FinGPT and FinLLMs include:

• Robo-advising

• Algorithmic trading

• Low-code development & more!

And this is just the tip of the iceberg. Given it's open-source, FinGPT will continue to stimulate innovation, democratize FinLLMs, and unlock new opportunities in open finance.

✈️ THE TAKEAWAY

Game-changer 🚀 This will undoubtedly be a game-changer for finance as we know it. At the core, open-source financial LLMs have the potential to revolutionize the future of finance by democratizing access to advanced financial expertise and insights. These FinLLMs, built on open-source frameworks, offer a range of benefits, the most important of which is increased transparency, collaboration, and innovation in the financial services industry. In addition to the aforementioned use cases, they enable individuals and organizations to leverage powerful language models for tasks such as financial analysis, risk assessment, portfolio management, and regulatory compliance. But most importantly, the open-source nature of these FinLLMs encourages developers and researchers to contribute and improve the models, fostering a collective intelligence that drives continuous advancements in the financial technology space. Looking ahead, open-source financial LLMs have a massive potential to level the playing field, empower users with sophisticated financial capabilities, and pave the way for more inclusive and efficient financial systems of the future. Systems that are built on Open Finance.

Bonus: The insurance sector is more and more exploring the benefits of AI 🤖

Generative AI will completely transform FinTech and Banking over the next 3 years 🤖🏦

JPMorgan is developing a ChatGPT-like AI service for investors 😳 [+6 more reads]

FinGPT paper: https://arxiv.org/abs/2306.06031

FinGPT code: https://github.com/AI4Finance-Foundation/FinGPT