Fintechs could see $100 billion of liquidity in 2021

  • “The Matrix fintech Index rose 97% in 2020, compared to a 14% rise in the S&P 500 and a 10% drop for the incumbent financial service companies over the same time period.
  • E-commerce undoubtedly stood out as a major driver. As a category, retail e-commerce grew 35% YoY as of Q3, propelling PayPal and Shopify to add over $160 billion of market capitalization over the year. For its part, PayPal in the third quarter signed up 15 million net new active accounts (its highest ever).”

Fintechs could see $100 billion of liquidity in 2021

Banks must be able to explain AI models – Brainard

Lael Brainard

“Banks must find ways around the ‘black box’ problem that affects many artificial intelligence-driven models, the Federal Reserve’s Lael Brainard says. The Fed governor told a virtual conference hosted by the central bank that supervisors would expect financial firms to be able to explain how their models are reaching certain results. Without this, it would be impossible to tell if a model was producing biased results, she said.”

On-the-go banking made easier as digital banking evolves

  • “Yes Bank provides AI banking, chat-based robots, SMS Pay, etc., bringing banking to the fingertips of people.
  • For instance, you can view financial transactions, order cheque book, report unauthorised transactions, connect with contact centre, donate, locate nearby ATMs and branches, and much more through a WhatsApp message. The bank, under its Yes Online platform, launched the AI-enabled YES Robot to address all the queries within no time.”

Yes Bank –

Banks need to strike the right balance for digital transformation

“For many financial institutions, this has been a wake-up call,” says Fei. “In the past, many had thought that if they have an online portal and a mobile application then that’s enough. But now they’ve realized it’s not. Some banks have online portals and mobile apps where you can apply for loans, but they still need to send items to the customer and carry out on-site inspection before they can process the loans, which hasn’t been possible during covid. Banks have had to reshape and redesign the whole process of their lending products.”

AI Innovation in Banking Is on the Threshold of Significant Advances

  • “The Economist Intelligence Unit found that only 15% of banks and insurance companies utilized AI, but almost 90% planned on increasing AI-related investments in fintech over the next five years. Asked why, they said AI was unlocking new growth and shrinking costs. Half said AI would drive new products and open up new markets.”