Are Fintech solutions and advancements broken? If so, what’s the fix?
The Fundamentals of Fintech Tackling the Security Issues For the Future
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Are Fintech solutions and advancements broken? If so, what’s the fix?
Golary-the financial ‘Goal Mall’ and an entirely new Fintech experience that is set to reinvent personal finance, offers an insight into the world of current Fintech solutions and the challenges they pose, while offering guidance to how people might navigate these challenges.
Technological advancements have long been changing the financial world; from ATMs to contactless payments. As practically everyone is living within an online society and economy, financial tech (aka Fintech) has continued to snowball over recent years in terms of advancements and innovations.
New solutions and innovations offer many positives yet throw up certain challenges. Here are some fintech examples that many people are exposed to today, with some factors to be aware of.
Neobanks/online-only banks?
Online-only banks are one of the newest Fintech solutions on the market. They offer users convenient banking that fits well into today’s 24/7 society. With the majority of these banks offering high-tech apps/platforms that implement algorithms, interactive technology, and, in some cases, AI, consumers can rest assured that they will receive a full banking experience at the touch of a button.
The lack of bricks and mortar banks also means that neobanks can offer lower exchange rates as well as low/no ATM withdrawal fees worldwide. This makes things that were once a concern for users, such as high travel fees, a non-issue.?
Unfortunately, neobanks do come with some issues. Due to the innovative nature of these banks, legal and regulatory protocols are still in their infancy and may become an issue if consumers have a problem with their finances, app or bank in general. Furthermore, the human aspect of in-person banking can often make difficult transactions and banking issues far easier to complete or resolve. While many neobanks offer AI and interactive solutions, some customers may prefer to speak with advisors in person.
It’s always worth consumers doing their research into the most credible neobanks and looking at the features available to ensure they know fully how it operates – even to know if it strongly rated for its customer service is extremely useful.
Alternative finance
Alternative finance simply represents the financial channels and tools that emerge outside of traditional financial systems, think reward-based or equity crowdfunding, revenue-based financing, peer-to-peer consumer and business lending, and invoice trading platforms.?
Alternative finance offers consumers who may have previously found it difficult to secure funding, such as loans, a way to gain access to the financial help they need. While users can often secure this financial help with lower interest rates – due to a broader spectrum of borrowers and applicant data – alternative financing also comes with a high risk of loss. In addition, alternative finance options are unfortunately a bigger target for criminal activity due to a lack of regulation.
When exploring alternative finance, people should again do their research. It is worth looking into the third party that facilitates the alternative finance and if it has reviews or ratings, the small print attached to it and considering the broad spectrum of alternative options on the market.??
Being fully in the know about the finer details before exploring any finance option will help the person to make the right decision and know fully what they are getting into.?
Cryptocurrency?
Even though bitcoin was introduced well over a decade ago, cryptocurrency is still a relatively new concept to the mainstream market. Free from government interference and outside influence, the decentralised nature of cryptocurrency makes it an increasingly popular option for the general public and for bigger investors alike.?
In addition to this, the very nature of crypto makes it practically impossible to hack – each cryptocurrency exists on the blockchain, which means that any attempt at hacking would take an immense amount of coordination, and is almost impossible
Crypto is also becoming a more viable option for businesses too. In some instances blockchain technology will enable the user to agree a contract and then automate their payment process, meaning that payment is assured for the supplier but the retailer does not have to pay for anything before the product arrives.
While crypto is becoming more and more viable in everyday life, there are problems to be wary of. As the market is decentralised, this makes the market especially volatile. If public opinion determines one currency to be worthless, prices can drop rapidly leading to big losses – and vice versa.?
The decentralisation of cryptocurrency can also open this industry up to scam crypto schemes and coins, which can be a big risk for people investing.
While great for security reasons, the high-tech nature of crypto makes it not particularly user friendly. Unlike a traditional bank where you may be able to freeze your card but still access your money online, lose the key to your crypto wallet and you’ve lost your coins for good.
People starting out in cryptocurrency should look to reputable platforms and well-established currencies, to ensure that these are safe to invest money in. People also shouldn’t be willing to invest more than they are prepared to lose given the market’s volatility.
Artificial Intelligence (AI)/machine learning
Artificial Intelligence (AI) and machine learning is becoming more integrated with everyday life, in the tools and systems we use for shopping, working, education, and more. When it comes to the finance industry, algorithms have been integrated into a variety of systems to detect fraud, automate transactions, and provide financial advice. The integration of artificial intelligence also reaches into the user’s experience of the financial industry, automating services such as customer service.?
The implementation of machine learning in the financial industry offers plus points such as reduced labour costs and operational efficiency, due to automation and the streamlining of processes. In addition, this kind of automation makes security systems far more effective by using complex algorithms to prevent breaches and hacking.
New solutions and innovations offer many positives yet throw up certain challenges. Here are some fintech examples that many people are exposed to today, with?some factors to be aware of.
Neobanks/online-only banks?
Online-only banks are one of the newest Fintech solutions on the market. They offer users convenient banking that fits well into today’s 24/7 society. With the majority of these banks offering high-tech apps/platforms that implement algorithms, interactive technology, and, in some cases, AI, consumers can rest assured that they will receive a full banking experience at the touch of a button.
The lack of bricks and mortar banks also means that neobanks can offer lower exchange rates as well as low/no ATM withdrawal fees worldwide. This makes things that were once a concern for users, such as high travel fees, a non-issue.?
?
Unfortunately, neobanks do come with some issues. Due to the innovative nature of these banks, legal and regulatory protocols are still in their infancy and may become an issue if consumers have a problem with their finances, app or bank in general. Furthermore, the human aspect of in-person banking can often make difficult transactions and banking issues far easier to complete or resolve. While many neobanks offer AI and interactive solutions, some customers may prefer to speak with advisors in person.
?
It’s always worth consumers doing their research into the most credible neobanks and looking at the features available to ensure they know fully how it operates – even to know if it strongly rated for its customer service is extremely useful.
Alternative finance
Alternative finance simply represents the financial channels and tools that emerge outside of traditional financial systems, think reward-based or equity crowdfunding, revenue-based financing, peer-to-peer consumer and business lending, and invoice trading platforms.?
Alternative finance offers consumers who may have previously found it difficult to secure funding, such as loans, a way to gain access to the financial help they need. While users can often secure this financial help with lower interest rates – due to a broader spectrum of borrowers and applicant data – alternative financing also comes with a high risk of loss. In addition, alternative finance options are unfortunately a bigger target for criminal activity due to a lack of regulation.
?
When exploring alternative finance, people should again do their research. It is worth looking into the third party that facilitates the alternative finance and if it has reviews or ratings, the small print attached to it and considering the broad spectrum of alternative options on the market.??
Being fully in the know about the finer details before exploring any finance option will help the person to make the right decision and know fully what they are getting into.?
Cryptocurrency?
Even though bitcoin was introduced well over a decade ago, cryptocurrency is still a relatively new concept to the mainstream market. Free from government interference and outside influence, the decentralised nature of cryptocurrency makes it an increasingly popular option for the general public and for bigger investors alike.?
In addition to this, the very nature of crypto makes it practically impossible to hack – each cryptocurrency exists on the blockchain, which means that any attempt at hacking would take an immense amount of coordination, and is almost impossible
?
Crypto is also becoming a more viable option for businesses too. In some instances blockchain technology will enable the user to agree a contract and then automate their payment process, meaning that payment is assured for the supplier but the retailer does not have to pay for anything before the product arrives.
While crypto is becoming more and more viable in everyday life, there are problems to be wary of. As the market is decentralised, this makes the market especially volatile. If public opinion determines one currency to be worthless, prices can drop rapidly leading to big losses – and vice versa.?
The decentralisation of cryptocurrency can also open this industry up to scam crypto schemes and coins, which can be a big risk for people investing.
?
While great for security reasons, the high-tech nature of crypto makes it not particularly user friendly. Unlike a traditional bank where you may be able to freeze your card but still access your money online, lose the key to your crypto wallet and you’ve lost your coins for good.
People starting out in cryptocurrency should look to reputable platforms and well-established currencies, to ensure that these are safe to invest money in. People also shouldn’t be willing to invest more than they are prepared to lose given the market’s volatility.
Artificial Intelligence (AI)/machine learning
Artificial Intelligence (AI) and machine learning is becoming more integrated with everyday life, in the tools and systems we use for shopping, working, education, and more. When it comes to the finance industry, algorithms have been integrated into a variety of systems to detect fraud, automate transactions, and provide financial advice. The integration of artificial intelligence also reaches into the user’s experience of the financial industry, automating services such as customer service.?
The implementation of machine learning in the financial industry offers plus points such as reduced labour costs and operational efficiency, due to automation and the streamlining of processes. In addition, this kind of automation makes security systems far more effective by using complex algorithms to prevent breaches and hacking.
?
As with anything there are, of course, drawbacks to the increased use of tech. When a mistake is made in the traditional financial industry, it is far easier to hold someone accountable, this is far more difficult with automation and algorithms. AI has a lot of kinks to iron out before the financial industry and its consumers can solely rely upon it.
Anyone that has issues to their user experience when using fintech platforms, or there is a mistake in terms of finances or anything else, could potentially be an AI issue. People should contact the organisation they are dealing with for it to be rectified.
RegTech
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Regulation and compliance is an expense in the finance industry – and any industry, for that matter – that is indispensable. However, that does not mean that firms have to stick with the same regulation and compliance systems that they have been using. RegTech is a fintech solution which offers companies a streamlined and cheaper way to regulate their operations, by using data, insights, and reporting technology.?
Processes to combat money laundering for example, such as automated security requirements, have made Fintech a safer and more trusted industry. However, due to the early stage of this solution there are gaps in the tech that, if not rectified, may lead to big discrepancies and errors.
Similarly, to earlier advice, if consumers notice anything incorrect when it comes to their financial affairs, they should alert the company they are dealing with immediately.
These are just some of the examples of the way in which Fintech innovations are changing the financial industry for the better and the worse, some of these innovations require some ironing out, while others need major changes to make a significant impact on the industry.?
While it’s recommended that Fintech consumers do their research before using any platform, another useful insight is to look to platforms that unify various innovations and advancements, and that cover multiple finance areas, to simplify managing finances.
How analytics helps move organizations to a 'new normal'
Industries including sports and entertainment, travel, manufacturing, education and government benefit from analytical insights
In the United States and other parts of the world, there are signs. Record automobile traffic. Surging demand for workers. And a continued push to vaccinate. The pandemic and its effects are still very much with us, but life seems to be returning to normal, or more precisely, a “new normal.”
As organizations across industries deal with this altered landscape, analytics technologies like artificial intelligence (AI) and machine learning are helping them adjust quickly, align resources and better meet the evolving needs of their customers.
Here are five industries using analytics to move to a new normal:
Sports and Entertainment
This year’s Summer Olympic Games in Tokyo were different than others. Because of Covid concerns, this year’s Games were held without spectators.
The Canadian Olympic Committee, working with?its official analytics partner SAS, used advanced analytics leading up to the Games, both to help its athletes optimize training to reach the medal podium, but also to train safely during the pandemic.
Coaches and the Canadian Olympic Committee medical team continue to rely on SAS Viya and its AI and machine learning capabilities to assess training processes, identify at-risk sports, and recommend precautions.
With a dashboard powered by data visualization, coaches track athletes’ performance. In the months before the Games, the coaches also helped Canadian Team members return to their sport after a positive COVID-19 test or potential exposure.
With AI and machine learning at its heart, the SAS platform helped Canadian Olympic Committee coaches and athletes re-calibrate when training disruptions occurred. Coaches could then make strategic adjustments to the routines of athletes recovering from illness or facing lost training days.
Travel & Hospitality
During the pandemic, people did still take vacations, though in the US many of those trips were by car and to nearby destinations. With its pristine beaches and laid-back lifestyle, the Outer Banks of North Carolina has remained a tourist magnet.
Even after the summer travel season, Americans still take road trips and book long-delayed family vacations.
For Twiddy & Company, a family-run company that manages more than 1,000 rental vacation properties on the northern Outer Banks, one key to its success has been analytics.
Twiddy & Company uses SAS Analytics to provide home management and maintenance on behalf of owners while ensuring repeat visits from rental guests.
And Twiddy & Company has seen record booking?of its managed properties over the last two years – including the 2020 peak COVID-19 year – and the data points to another record season this year.
Using analytics, the company can forecast and streamline the management of routine services, such as cleaning hot tubs and pools before guests arrive for vacation.
Twiddy & Company relies on remarkably specific home-pricing information generated through SAS to compete in the Outer Banks rental market with other local firms and large international companies like HomeAway and Airbnb.
“What we deliver is hospitality – that's our passion and our business,” says President Clark Twiddy. “SAS has helped us, through better data analytics, to deliver it with a higher degree of confidence.”
?Manufacturing
WaterRower, a US-based fitness equipment manufacturer was concerned with how to manage the health and safety of its employees at work during the pandemic. When gyms and workout studios were closed, coupled with more Americans working from home, demand rose for its rowing machines. But increasing its workforce without implementing advanced safety measures was simply not an option. The solution: Peter King, CEO of WaterRower, decided to work with SAS, implementing SAS AI capabilities to help WaterRower employees safely return to the workplace.
SAS and partner SuperMicro developed and deployed a computer vision system for WaterRower that monitors physical distance.
The SAS powered physical distance monitoring solution consists of a real-time dashboard, an alert system, and a post-facto dashboard to monitor compliance with physical-distancing and crowd-density guidelines. Existing security camera footage from WaterRower was used to train the model, and all employee data was anonymized.
The real-time dashboard consisted of a front page displaying the activities of employees. It also included a summary of total violations and an email alert system.
The results: WaterRower’s team of engineers and manufacturing leaders continuously reviewed the SAS AI-powered dashboard and alert system. By implementing strategic changes to work areas, employee workflow and internal movement paths, WaterRower achieved record production volume while significantly reducing cases of close contact within its manufacturing facilities.
Education
As stadiums, arenas and other venues welcome back in-person events, venue optimization software can help optimize attendance and create a safer fan experience. For the University of Wisconsin-Madison, helping its graduates attend their graduation/commencement ceremony was an important goal.
The University’s Department of Athletics used SAS to determine socially distanced seating layouts for recent commencement ceremonies at Camp Randall Stadium. This home to the Wisconsin Badgers football team has a normal capacity of 80,321 people.
“An in-person commencement was an important milestone for our university. Creating a memorable experience while supporting the safety of our graduates, faculty and operations staff required significant flexibility and planning,” said Daron Jones, Wisconsin Athletics Director of External Engagement. “SAS was the right partner to work with on this venue seating optimization effort. They collaborated with us step-by-step while tailoring a comprehensive seating optimization plan specific to all of the unique aspects of Camp Randall Stadium, and completed the project in a short amount of time.”
SAS for venue optimization uses models and data visualization to provide an ideal seating layout based on a set of ticketing and social distancing parameters and objectives. Wisconsin’s two ceremonies, one for undergraduates and another for graduate degree candidates, were limited to participants only. However, even in a venue as large as Camp Randall Stadium, it was a challenge to accommodate graduates while allowing for six feet of social distancing.
Potential ceremony participants were sent seating request surveys to identify groups who wanted to sit together. The SAS venue optimization models factored in the survey results and pandemic rules and restrictions.
Data visualization showed the Wisconsin athletic department what the stadium seating arrangements would look like on graduation day. The athletic department easily uploaded the venue optimization results into its ticketing system for fulfillment.
Government
While there is continued talk of a “new normal,” especially in the United States, variants of COVID-19 mean that many countries are still grappling with rising infections, complex vaccine rollouts and in some cases shortages of these vaccines and other critical supplies.
India is one such country. Its eastern state of Odisha, on the Bay of Bengal, is home to more than 46 million people. That’s more than in the state of California, the most populous US state.
The Government of Odisha has turned to an advanced analytics and visualization platform powered by SAS Viya to create a public COVID-19 dashboard.
Odisha’s citizens and government officials proactively use the Odisha State COVID-19 dashboard as the single, trusted source for tracking trends in infection rates, hospitalizations and available medical resources.
Using this platform, high volumes of data on citizen registrations, contact tracing, health conditions and quarantine compliance are aggregated, transformed and processed to generate insights.
?In addition to rich visualizations, this data has been successfully used in forecasting peak infection times and modeling the optimal infrastructure augmentation and distribution by the State. In essence, the dashboard has enabled Odisha to stay ahead of the virus and save lives.
Rise of the metaverse sparks need for AI ethics
The Lead
[1] With the Metaverse on the way, an AI bill of rights is urgent?
[2] DataRobot launches AI Cloud for industries including banking and healthcare
[3] Unity moves robotics design and training to the metaverse
The Follow
[1] There is a lot more than the usual amount of hand wringing over AI these days. Former Google CEO Eric Schmidt and former U.S. Secretary of State and National Security Advisor Henry Kissinger released a new book last week warning of AI’s dangers. Facebook — now rebranded as Meta — has come under growing pressure for its algorithms creating social toxicity, but it’s hardly alone. The White House has called for an AI bill of rights, and the Financial Times argues this should extend globally. The concerns point to shortcomings in existing AI implementations and the inherent dangers posed by its use in relation to employment, housing, credit, commerce, criminal sentencing, and healthcare. And yet, there is a multitude of significant advances brought about by AI that would otherwise not be possible — from revolutionizing our understanding of biology to saving energy in data centers to becoming a new trusted source of career advice, developing computer code, identifying cancers in patients, and even opening up the possibility of communicating with other species.
AI finds patterns in enormous and complex datasets to solve problems that people cannot, though it often reinforces inherent biases and is being used to build weapons where life and death decisions could be automated. The danger associated with this dichotomy is best described by sociobiologist E.O. Wilson at a Harvard debate, where he said, “The real problem of humanity is the following: We have paleolithic emotions; medieval institutions; and God-like technology.” >> Read more.
[2] Boston-based DataRobot, a startup enabling enterprise AI development and deployment, today announced the launch of DataRobot AI Cloud for Industries, a comprehensive platform that unites AI capabilities with sector-specific best practices, integrations, and partnerships for enterprises across major industries.
The company’s new AI cloud tool provides more than 100 best practices for delivering AI for key use cases and business challenges; dozens of Pathfinder Solution Accelerators, third-party integrations, and notebooks that accelerate the path from concept to production of AI tailored to industry priorities; and integrations with data services, business applications, and existing security governance tools.??
Currently, AI Cloud for Industries is available to enterprises in banking, retail, manufacturing, and healthcare. In the coming months, it will expand to energy, life sciences, insurance, government, telecommunications, and media organizations. >> Read more.
[3] Unity, the San Francisco-based platform for creating and operating games and other 3D content, recently announced the launch of Unity Simulation Pro and Unity SystemGraph to improve modeling, testing, and training complex systems through AI. With robotics usage in supply chains and manufacturing increasing, such software is critical to ensuring efficient and safe operations.
Danny Lange, senior vice president of artificial intelligence for Unity, told VentureBeat via email that the Unity SystemGraph uses a node-based approach to model the complex logic typically found in electrical and mechanical systems. “This makes it easier for roboticists and engineers to model small systems, and allows grouping those into larger, more complex ones — enabling them to prototype systems, test and analyze their behavior, and make optimal design decisions without requiring access to the actual hardware,” Lange said. >> Read more.
Introducing the Marketplace for all things AI
A MESSAGE FROM DEFINED.AI
Introducing the Marketplace for all things AI
DefinedCrowd has evolved into Defined.ai. This online Marketplace for AI allows AI professionals to buy or sell ready-to-use AI datasets, tools, or models, or order custom-made assets. Partner with us to sell your AI assets and reach a wide, global audience of AI professionals. Alternatively, take advantage of our subscription packages to get access to continuously updated assets at reduced pricing. Visit www.defined.ai to explore the Marketplace or order a custom-created asset.
The Funding Breakdown
Pigment nabs $73M - Pigment, a next-gen business forecasting platform that’s setting out to “reboot the spreadsheet,”, seeks to harness and unlock big data insights to help businesses make better decisions. Pigment is challenging business planning technology incumbents such as Anaplan and dusty old Excel spreadsheets by offering a more flexible, visual alternative that enables anyone in a company to embed forecasting into their applications, fine-tune their parameters and update their forecasts continuously.
Zesty raises $35M - Zesty, a company that tastefully offers a tool for automatically scaling and shrinking cloud resources to keep cloud costs in check, reports it will use the newly raised capital to further strengthen its tool. The company is tackling the contentious problem of keeping cloud-based applications running without paying too much. Competitors such as Kubecost and Cloudability already offer software packages that focus on tracking spending for managers. Zesty’s tool also tracks usage and, in real-time, adjusts the allocation of instances and disk space to be large enough to handle the current load but small enough to keep the budget from exploding.
Intelligo lands $22M - Intelligo, an Israeli startup providing AI-driven background check solutions to investors, financial institutions, and corporations, says it will use the money to further the development of its AI-powered risk intelligence platform — Clarity — and help set up shop in additional geographies. For years, due diligence processes such as background verification have been manual and time-consuming (typically taking 10-15 days). Currently, the platform returns reports between 30 minutes and five days, and it’s used by hundreds of customers, primarily investment banks, private equity firms, and hedge funds with combined assets under management of over $500 billion.
Writer secures $21M - Writer, an AI writing assistant for marketing teams, will put the fresh capital toward customer acquisition initiatives and headcount growth. Its software helps companies write more clear, consistent marketing copy. Leveraging AI, Writer’s platform delivers guidelines that help organizations align content spanning communications, marketing, product, and HR documents.
The Funding Breakdown
Pigment nabs $73M - Pigment, a next-gen business forecasting platform that’s setting out to “reboot the spreadsheet,”, seeks to harness and unlock big data insights to help businesses make better decisions. Pigment is challenging business planning technology incumbents such as Anaplan and dusty old Excel spreadsheets by offering a more flexible, visual alternative that enables anyone in a company to embed forecasting into their applications, fine-tune their parameters and update their forecasts continuously.
Zesty raises $35M - Zesty, a company that tastefully offers a tool for automatically scaling and shrinking cloud resources to keep cloud costs in check, reports it will use the newly raised capital to further strengthen its tool. The company is tackling the contentious problem of keeping cloud-based applications running without paying too much. Competitors such as Kubecost and Cloudability already offer software packages that focus on tracking spending for managers. Zesty’s tool also tracks usage and, in real-time, adjusts the allocation of instances and disk space to be large enough to handle the current load but small enough to keep the budget from exploding.
Intelligo lands $22M - Intelligo, an Israeli startup providing AI-driven background check solutions to investors, financial institutions, and corporations, says it will use the money to further the development of its AI-powered risk intelligence platform — Clarity — and help set up shop in additional geographies. For years, due diligence processes such as background verification have been manual and time-consuming (typically taking 10-15 days). Currently, the platform returns reports between 30 minutes and five days, and it’s used by hundreds of customers, primarily investment banks, private equity firms, and hedge funds with combined assets under management of over $500 billion.
Writer secures $21M - Writer, an AI writing assistant for marketing teams, will put the fresh capital toward customer acquisition initiatives and headcount growth. Its software helps companies write more clear, consistent marketing copy. Leveraging AI, Writer’s platform delivers guidelines that help organizations align content spanning communications, marketing, product, and HR documents.
Virtuoso gets $13M - Virtuoso, a startup that offers codeless test automation solutions to enterprises, reports that it plans to use the new capital to further develop its automation platform and expand its sales team. Although testing solutions have been around for a while, they haven’t kept pace with the rapidly evolving app development lifecycle. In Capgemini’s 2019-2020 World Quality survey, more than half of the organizations said they lacked the right tools for testing and couldn’t automate to the level needed. Virtuoso offers a SaaS platform that leverages machine learning and robotic process automation to solve such challenges.