73% of financial services execs expect AI to take their jobs 😳; Mastercard gains long-awaited approval in China 🇨🇳; Circle eyes an IPO 👀
FinTech is Eating the World, 23 October
Hey Everyone,
Happy Thursday & Happy Thanksgiving to those who celebrate! 🦃 Today we’re going to look at why >70% of FinServ execs expect AI to take their jobs (analyzing the latest AI report + more bonus reads on AI & Finance), Mastercard that gained long-awaited approval in China (why this is big + some deeper dives into Mastercard & Visa), and Circle that eyes an IPO in 2024 (why it makes sense + some interesting bonus reads). Let’s jump straight into the awesome stuff 🌶
73% of financial services execs expect AI to take their jobs 😳
New report 🗞️ Almost three-quarters (73%) of executives working in financial services expect to eventually be replaced by Generative AI (GAI), according to a recently released study. Yikes 👀
Let’s take a look.
More on this 👉 The introduction of generative AI (GAI) is polarizing the financial services industry, with sentiments ranging from excitement to apprehension about its potential impact.
A recent survey of 502 senior decision makers in banking and insurance produced by FintechOS revealed significant investments in GAI amidst divided opinions on its benefits and risks.
Key finding 📊 While GAI promises major productivity gains, its implementation surfaces concerns about workforce reductions. Over 70% of respondents believe GAI could eventually replace their jobs. This expectation of displacement contrasts with the predominantly positive view that GAI is more "friend" than "foe."
Nonetheless, GAI investment is charging ahead. Over half of large institutions are already using GAI, especially for customer service. Looking ahead, most research and implementation efforts target new business queries and lending automation.
But consensus breaks down on GAI's leading applications. Virtually equal proportions identify customer service, credit checks, lending, and data analytics as top contenders. Such fragmentation suggests GAI's wide-ranging potential is still taking shape.
Views also diverge on optimal ownership of GAI strategy, split between chief security and chief operations officers. This may reflect GAI’s dual nature as a security and efficiency play.
The most resounding point of agreement? GAI adoption will boost revenue. Two-thirds of respondents forecast a 10-30% increase in the next three years.
✈️ THE TAKEAWAY
Looking ahead 👀 It’s clear that GAI is set to revolutionize financial services amidst polarization on its impacts. While implementation moves forward, its complete disruption remains unclear. Legacy constraints around data and systems raise adoption barriers. Nonetheless, standing still equates to falling behind. The scale of predicted transformation demands proactive steps today. As GAI infiltrates the fabric of finance, the winners will be those who harness its capabilities early to personalize offerings and accelerate innovation. The future competitive landscape may come down to how financial institutions choose to shape GAI instead of being shaped by it.
ICYMI: Ritual raises $25M to make AI decentralized 😳 [the USP & why this is very interesting]
Generative AI will make Finance Autonomous 🤖💸 [taking a big picture view on the changes taking place now & what’s next + more deeper dives into AI & Finance]