09 August 2023
In this week’s newsletter, we look at how artificial intelligence is creating risks and opportunities for innovation in life insurance, banking and capital markets. The generative AI hype is turning into real use cases across sectors, but strong governance is needed. We also look at standout successes in APAC, such as why AliPay is beating Tencent in cross-border payments and the secret behind Indian fintech Paytm’s strides in lending. Lastly, we examine why data and client-facing technology are essential for successful virtual sales in commercial banking.
Celent: Using generative AI to mitigate risk in life insurance
Today, many insurers have implemented some form of AI in accordance with policies and governance guidelines. The introduction of generative AI and other learning language models (LLMs) has added several new elements of risk that insurers need to assess in their policies.
Datos Insights: AI in capital markets
AI’s influence in capital markets is not new but has increased, rapidly following the recent buzz around ChatGPT. This industry is integrating AI into products and services – from front-office searches to liquidity and back-office automation removing errors and omissions.
Celent: The risks and opportunities for generative AI in banking
With the generative AI genie out of the bottle, the risks and returns of adopting the technology are a challenge to estimate. Without even implementing any AI, financial institutions are exposed to heightened external threats by the users of the technology.
Datos Insights: The rise of virtual account management platforms
In response to the current economic climate, banks must seek growth while lowering operational costs. One way to tackle this is using virtual account management platforms to automate manual tasks to improve the efficiency of banking operations.
Kapronasia: Why AliPay is beating Tencent on cross-border payments
Tencent has claimed nearly half of China’s domestic payments market, but when it comes to cross-border payments, it still lags behind its rival Alipay.
Gartner: Boosting success for virtual sales in commercial banking
Against commercial banking leaders’ expectations, relationship managers have been successful in virtual sales while working remotely which can be further boosted through improved internal collaboration, data and client-facing technology.
Kapronasia: Paytm’s focus on lending pays off
The Indian fintech Paytm has seen its revenues rise 39% year-on-year to 23.42 bn rupees. Its focus on lending and moving away from offering a range of unrelated digital financial services seems to be its prime reasons for success.
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