Fintech Analyst Report - Issue 319

Forrester: Banking and FS sector leading the adoption of industry foundation models
Foundation models (FMs) have driven the global rise of generative AI. General-purpose FMs lack the domain-specific knowledge needed for adoption in financial services, but industry FMs are emerging, offering deep domain expertise, customisation, and cost-effectiveness. This report examines uptake in China.

Datos Insights: Deep dive into fraud and AML for LLM solutions
Banks and credit unions can leverage LLMs to automate and enhance operations. As the market for enterprise-grade LLMs evolves, they have various options from tech giants, AI startups, and open-source solutions. Choosing the right vendor is essential for meeting performance, accuracy, data privacy, and security needs.

Javelin: The tipping point of embedded finance approaches
Just as bundled payments have emerged through various business models, so too has Banking-as-a-Service (BaaS). How to compete with software companies offering embedded finance will be a key concern for banks in 2024.

Celent: Digital transformation in the alternatives and private credit industry
Asset management and investment focused on alternatives and private credit has advanced with digitisation and technology, offering opportunities in AI, blockchain, and data analytics. Firms need a cohesive tech strategy to navigate a fragmented landscape of platforms and specialists, amid emerging public-private market ecosystems.

Greenwich Research: Demand for enhanced archiving solutions in FS
Rising compliance costs and tighter budgets in financial services are driving demand for more use cases for tech applications. Traditionally, digital communications data has been archived and forgotten. However, stricter regulations and hefty fines mean archiving solutions must now go further, providing insights as well as storage.

Forrester: Indian consumers continue to rely on banking websites
Indian consumers prefer banking websites due to familiarity with desktops, larger screens for managing finances, and perceived security. This preference comes from familiarity with desktops for internet tasks, the advantage of a larger screen for managing finances, and a perception of greater security on websites.

Datos Insights: The demand for ESG solutions in commercial banking
Businesses are increasingly recognising the need to enhance ESG performance. ESG offerings in commercial banking are still developing, but financial institutions that adopt early and prepare for growing demand will gain a significant advantage as the market matures.

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