Global fintech and funding innovation ecosystem

Category Archives: Fintech AI/ML, Data-driven, Automation, Generative AI

Canuck Startups Cohere and Clio Secure Major Funding Rounds

Funding | Jul 23, 2024

Freepik storyset funding - Canuck Startups Cohere and Clio Secure Major Funding Rounds

Image: Freepik/storyset

Canadian ventures Cohere and Clio secure series D and series F respectively, reaching new valuations

Canadian startups, Cohere and Clio, are making headlines this week by announcing major fundraising rounds, showcasing the potential and strength of Canada's innovation economy and technology sector.

See:  Generative AI Myths That Founders Should Know

Cohere $500 million Series D

Cohere, a Toronto-based AI startup, raised $500 million in a Series D round, bringing its total valuation to $5.5 billionPSP Investments led the fundraising round, including participation from Cisco, Fujitsu, AMD Ventures, and Export Development Canada (EDC). Cohere specializes in large language models for enterprise applications, with key clients including Notion Labs and Oracle. Aidan Gomez, Nick Frosst, and Ivan Zhang founded Cohere in 2019 with the goal of developing practical AI solutions rather than researching artificial general intelligence.

Clio $900 million Series F

Clio, a Vancouver-based legal technology business, secured $900 million in a Series F round, bringing its valuation to $3 billion. New Enterprise Associates led the round, which included major investments from Goldman Sachs Asset Management, Sixth Street Growth, CapitalG, and Tidemark. Clio provides software that automates legal operations such as client intake and document management, and it has embraced generative AI with its Clio Duo AI solution, which helps with typical legal work. Clio, founded in 2008, now generates more than $200 million in yearly recurring revenue and employs over 1,100 people.

See:  Legaltech startup Clio launches Fintech payment product and investment fund

Outlook

The substantial funding rounds for Cohere and Clio reflect the growing confidence in Canadian tech startups and their ability to drive technological advancements and market leadership.  Cohere’s AI-driven solutions and Clio’s legal tech innovations highlight the diverse applications of technology in solving real-world problems.


NCFA Jan 2018 resize - Canuck Startups Cohere and Clio Secure Major Funding RoundsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Canuck Startups Cohere and Clio Secure Major Funding RoundsFF Logo 400 v3 - Canuck Startups Cohere and Clio Secure Major Funding Roundscommunity social impact - Canuck Startups Cohere and Clio Secure Major Funding Rounds

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Canuck Startups Cohere and Clio Secure Major Funding Rounds




 

Good, Bad, and Ugly of Project Strawberry’s Capabilities

AI | Jul 16, 2024

Freepik artbutenkov strawberry - Good, Bad, and Ugly of Project Strawberry's Capabilities

Image: Freepik/artbutenkov

What outcomes can we expect from OpenAI's secret Project Strawberry?

Recent reports on OpenAI's covert initiative, Project Strawberry, have drawn interest from artificial intelligence tech enthusiasts and business leaders. This initiative hints at a future where AI will be able to conduct deep research, think, plan ahead, and solve problems on par with humans with improvements in reasoning capabilities.  Below we explore the potential impacts on fintech, and ask ChatGPT itself to help assess the possibilities it holds for various sectors.

What is Project Strawberry?

According to Reuters and Bloomberg, Project Strawberry's objective is to develop AI systems that possess the ability to perform deep reasoning which means it can analyze and comprehend intricate issues, strategically plan, and proactively come up with solutions to deploy.  All combined such AI capabilities can be called Superintelligent AI, a remarkable achievement in the field of AI (and not for the faint of heart).

Human-Level Problem Solving

Fundamentally, the goal of Project Strawberry is to give AI the capacity to solve problems at the level of a human. This entails going beyond data processing and pattern recognition to effectively in real-time grasp context, make logical choices (that can be explained), and forecast results. This type of Superintelligence will be able to:

See:  Three Generations Discuss AI Concerns, Hopes, and the Future

What's the timeline?

Gradual developments are anticipated in the next few years, and significant breakthroughs are probably in the works during the next ten years.  There are multiple stages of development and testing involved in getting from existing AI capabilities to the desired Project Strawberry features.

Implications for Fintech

The development of AI reasoning technology will be extremely beneficial to the fintech industry. The progression of AI's present fintech sector skills to Project Strawberry's anticipated advanced features is depicted in the table below. Financial services will change dramatically as a result of the transition from simple automation and pattern recognition to complex reasoning and strategic planning, which would increase their resilience, predictability, and personalization.

See:  Whistleblowers Accuse OpenAI of Illegally Restrictive NDAs

Here are a few examples that illustrate the transformation:

AreaCurrent CapabilitiesProject Strawberry Capabilities
Fraud DetectionAI systems are capable of identifying fraudulent activity by examining transaction patterns and raising red flags.AI's improved reasoning enables it to anticipate possible market dangers and provide advice on preventative actions.  Predictive risk management
Personalized Financial AdviceAI-powered platforms offer customized financial guidance by analyzing user information and market patterns.AI has the potential to create comprehensive financial plans that take long-term objectives and market dynamics into consideration, resulting in strong financial health.  Strategic financial planning
Automated TradingAlgorithms use market data to optimize investment strategies while executing transactions quickly.AI could help large financial organizations make strategic decisions that reduce risks and maximize returns by analyzing macroeconomic variables such as regulatory changes, global economic trends, and other considerations.
Pixabay Ramdlon Good Bad - Good, Bad, and Ugly of Project Strawberry's Capabilities

Image: Pixabay/Ramdlon

Probability Assessment of Future Outcomes with Superintelligent AI

We asked ChatGPT to predict the 'good, bad, and ugly' outcomes in a not too distant future, assuming the achievement and use of Strawberry like capabilities and to assign a probability of such outcomes coming true.  Here’s a detailed breakdown:

See:  Rising AI Energy Use: A Call for Sustainable Innovation

The Good ~60%

Massive Efficiency and Innovation Gains

  • Healthcare: Very likely (70%). It appears highly likely that advanced reasoning capabilities will be integrated to improve individualized treatment plans and diagnosis given the present trajectory of AI in medicine.
  • Education: Moderate possibility (60%). Although it is possible, adopting and investing heavily in individualized AI tutors for use in classrooms will need the support of educational institutions.
  • Environmental Sustainability: Moderate possibility (50%). Governments and businesses must prioritize environmental challenges and work together globally for this to be successful.

Enhanced Problem Solving

  • Business and Finance: High chance (80%). Since the financial industry is already a major investor in AI, the development of enhanced reasoning capabilities makes sense.
  • Government and Policy: Moderate possibility (60%). AI has the potential to greatly enhance policymaking, but because of ethical, bureaucratic, and regulatory issues, its implementation may take longer than expected.

See:  A Look Inside Canada’s AI Commercialization Challenge

Improved Quality of Life

  • Daily Living: Very likely (70%). Artificial intelligence is already being used in everyday tasks, and Project Strawberry will expand on these developments.
  • Safety and Security: Moderate possibility (60%). AI-driven security solutions are emerging quickly, but their adoption may be hampered by privacy and ethical issues.

The Bad ~30%

Job Displacement and Economic Disruption

See:  Report: Responsible AI Insights and Tips for Investors

Ethical and Privacy Concerns

The Ugly ~10%

Loss of Human Autonomy

  • Dependency:  Moderate possibility (40%). Even though there is a chance that AI will be used excessively, understanding of this risk could motivate efforts to preserve human abilities like critical thinking.
  • Control:  Low likelihood (20%). Although safety precautions will be included into advanced AI systems, there is still a chance that they will be insufficient or circumvented.

Existential Risks

See:  Sustainable Business and The Regenerative Future

Conclusion

A future with Project Strawberry capabilities has enormous promise for improving human existence and solving difficult global issues, however it needs to be handled with significant caution where policymakers, technologists, and society at large must collaborate on a future where AI serves humanity's best interests.  The prior sentence sort of feels like a 'broken record' where the sentiment is the same for most challenges.  The future is brighter and stronger when resources collaborate and remain united (not divided).


NCFA Jan 2018 resize - Good, Bad, and Ugly of Project Strawberry's CapabilitiesThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Good, Bad, and Ugly of Project Strawberry's CapabilitiesFF Logo 400 v3 - Good, Bad, and Ugly of Project Strawberry's Capabilitiescommunity social impact - Good, Bad, and Ugly of Project Strawberry's Capabilities

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Good, Bad, and Ugly of Project Strawberry's Capabilities




 

NFX: Start Thinking ‘Service-as-a-Software’

AI | Jul 11, 2024

Freepik AI assisted person interacting with AI robot - NFX:  Start Thinking 'Service-as-a-Software'

Image: Freepik (AI assisted)

SMEs will be Turbocharged as we move from 'AI Tools' to 'Guided AI Agents'

We agree with NFXs recent post that using "Guided AI Agents" instead of "AI tools" can automate a large amount of work and advance automation beyond simple job execution to produce efficiencies and specific business outcomes.  For the first time ever, there's a technology that can help solve the problem of 'delivering uniqueness at scale', and small-and-medium-enterprises (SMEs) need to take advantage of this momentous opportunity.

1. Automation Potential

“This very moment, we could easily automate away 60% to 70% of the global economy’s work hours with AI.”

2. From “Tasks” to “Outcomes”

Guided AI Agents represent a shift in focus from completing tasks to achieving outcomes. This approach enables businesses to measure success based on tangible results rather than the effort spent on individual tasks.

See:  Report: Responsible AI Insights and Tips for Investors

“You can measure success in new customers gained, articles placed, deals closed. Outcomes.”

  • Marketing with AI increases conversion rates by 20% and customer satisfaction by 10%.
  • According to the Small Business Council, 93% of SMBs concur that AI is increasing profitability and saving them money.
  • Small businesses should provide AI services with the goal of producing quantifiable business results, making sure that fintech solutions complement the expansion goals of SMBs.

3. Delivering Uniqueness at Scale

SMBs have a variety of demands, and guided AI agents can meet those needs by offering customized solutions at scale. With the help of AI, small firms may now effectively compete with larger corporations by using AI to complete hard jobs.

“We can finally deliver uniqueness at scale.”

“Now, Guided AI Agents run in the background, requiring no additional time investment from the SMB.”

  • Guided AI agents can meets specific and unique requirements of SMEs in conjunction with best practices.
  • Provide AI-powered financial process management solutions that handle everything 'holistically' from payroll to invoicing, improving user experience and operational effectiveness.

See:  Google’s AI Boom Drives 50% Rise in Carbon Emissions

  • SMEs should incorporate AI solutions that run on their own, freeing up SMBs to concentrate on their core business operations while the AI takes care of intricate financial responsibilities in the background.

Outlook

The concept of "service-as-a-software" is driving this transformation, emphasizing the shift from traditional human-centric services to automated, scalable software solutions. Guided AI Agents embody this inverted thinking by offering tailored, automated services that can handle complex tasks and deliver specific outcomes without continuous human involvement leading to an increase in productivity.


NCFA Jan 2018 resize - NFX:  Start Thinking 'Service-as-a-Software'The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - NFX:  Start Thinking 'Service-as-a-Software'FF Logo 400 v3 - NFX:  Start Thinking 'Service-as-a-Software'community social impact - NFX:  Start Thinking 'Service-as-a-Software'

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - NFX:  Start Thinking 'Service-as-a-Software'




 

Bank of England Launches New Data Innovation Strategy

Regulation | Jul 9, 2024

Bank of England data and analytics strategy overview - Bank of England Launches New Data Innovation Strategy

Image: Bank of England - Overview of Data and Analytics Strategy

Q&A Insights from the Bank of England's New Strategy

At the Future of Regulation (DiFoR) conference on July 5, James Benford, the at the FCA delivered a speech outlining the Bank of England's new data analytics strategy, goals, and new enterprise cloud data platform and plan to make data innovation work for everyone.

5 Insights About the BoE's New Data Analytics Strategy

Below we highlight some impactful Q&A of interest to fintechs and financial institutions regarding data innovation plans.

1. What is the Bank of England's New Data and Analytics Strategy?

With the goal of revolutionizing the collection, analysis, and application of data, the Bank of England has launched a new comprehensive data and analytics plan. This approach places a strong emphasis on utilizing data technology to promote financial innovation, increase financial stability, and improve regulatory compliance.

See:  BoE Report: Open Banking Boosts Productivity, Competition

The goal of the Bank's use of big data and sophisticated analytics is to build a financial system that is more reliable, open, and effective.

2. How Will the New Cloud Enterprise Data Platform Be Developed and Implemented?

Developing a new cloud enterprise data platform to enable real-time analytics and decision-making by facilitating seamless data integration and accessibility is a key part of the plan.  The implementation will be phased with core infrastructure added first and more sophisticated features being added in the future.  This approach ensures a safer, adaptable, and scalable environment for handling enormous volumes of financial data.

3. What Steps Are Being Taken to Improve Regulatory Data Collections?

Improving regulatory data collection is one of the main priorities of The Bank of England.  The implementation of powerful technologies that automate data collection aims to improve the timeliness and accuracy of data submissions while lessening the reporting load on financial institutions. Improved risk management and more effective regulatory supervision will also be possible with streamlined procedures and improved data standards in the financial industry.

4. How Will Artificial Intelligence (AI) Be Safely and Effectively Integrated?

AI tools will be combined to evaluate large, complex datasets, forecast trends, and spot possible dangers. Strict governance frameworks and ethical standards are being implemented by the Bank to guarantee safe and efficient use.

See:   How GenAI Is Transforming Risk and Compliance in Banking

By addressing issues with bias, transparency, and data protection, these steps will promote responsibility and trust in AI-driven systems.

5. How Will the Bank Manage the Transformation?

To succeed the bank will need to adjust its corporate culture, skill sets, and business procedures to transform the Bank's approach to operate a modernised data innovation program. The bank is investing in training and development of staff to provide the necessary skills to work in a data-centric environment. Also, cultivating a culture of creativity and cooperation is necessary for the new approach to be implemented successfully. This entails interacting with stakeholders from the financial industry as a whole and promoting candid discussions on industry best practices and new developments.

What Outcomes Are Expected?

  • More timely and reliable data can be expected by using automated data collection systems and advanced analytics. This lowers errors and improves the accuracy of the financial data available.
  • Improved transparency and confidence.  Clients can feel secure knowing that their data is managed ethically, reducing the possibility of bias and privacy issues.
  • The strategy's focus on effective risk management and regulatory supervision helps to create a more stable financial system.  The bank will use AI and machine learning to forecast consumer behaviour, market trends, and possible financial hazards.  A safer financial environment lowers the possibility of systemic risks and financial disasters, which benefits consumers.

See:  FCA’s Shift to More Transparent Investigations

  • The use of automated data collection tools and standardized data formats will minimize data requests and reduce the reporting workload (administrative burden) and costs for both industry and regulators, thus improving regulatory compliance and supervision.
  • Stronger data infrastructure will boost collaborative innovation between regulators, fintechs and the Bank of England around financial inclusion, cybersecurity, and other initiatives drawn by insights from shared data, creating an environment that encourages growth.
  • Higher quality compliance related data will empower fintechs to make informed data-driven decisions that will improve operational efficiencies and strategic planning, leading to better customer experiences, and ultimately more competitive financial products.

Conclusion

By using the latest technologies to improve data collection/quality and automate regulatory processes while promoting cooperation, regulators and industry may expect better compliance, streamlined reporting requirements, and a smarter and more agile and resilient operating environment.


NCFA Jan 2018 resize - Bank of England Launches New Data Innovation StrategyThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Bank of England Launches New Data Innovation StrategyFF Logo 400 v3 - Bank of England Launches New Data Innovation Strategycommunity social impact - Bank of England Launches New Data Innovation Strategy

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Bank of England Launches New Data Innovation Strategy




 

Robinhood Acquires AI Platform Pluto Capital Inc

M&A | Investing Services | Jul 8, 2024

Robinhood Acquires Pluto release image - Robinhood Acquires AI Platform Pluto Capital Inc

Robinhood and Pluto (Image: Robinhood)

Robinhood Acquires AI Platform Pluto to Democratize Personalized Financial Advice for All Investors

Robinhood recently announced the acquisition of Pluto Capital inc., an AI-driven investment advice platform, which has the potential to democratize finance by providing personalized investment strategies and real-time analytics to a broader audience.

Pluto's AI Driven Feature Set

  • Pluto uses leading large language models (LLMs) with access to real-time personal and international financial data to effectively process and interpret market data. As a result, Robinhood users will be able to spot trends and opportunities more quickly, giving them a competitive advantage.
  • Pluto's algorithms examine variables including past performance, investing objectives, and risk tolerance to personalize individualized investment plans to each unique customer profile. With the help of this function, users of Robinhood can obtain suggestions that are highly tailored to their own financial needs.
  • Real-time updates and insights are provided to investors, facilitating well-informed decision-making for portfolio optimization. Customer portfolios can be continuously improved for better results, balancing growth and risk in accordance with personal preferences, with the help of AI-driven analysis.

See:  Robinhood Acquires Bitstamp Crypto Exchange for $200 M

Mayank Agarwal, VP of Engineering, Robinhood:

“We are thrilled to welcome Pluto and Jacob Sansbury to Robinhood.  They have built an impressive platform that is highly regarded in the financial services industry. Importantly, their expertise in artificial intelligence coupled with a mission-aligned passion to democratize finance will complement our team’s effort to bring AI powered tools to our customers.”

Democratizing Financial Information for Retail Investors

Access to optimized personal financial portfolios previously only exclusively available to richer clients—will become more accessible to a wider audience with the integration of Pluto's AI capabilities into Robinhood's ecosystem. There will be other noteworthy effects from this levelling of the playing fields:

See:  SEC Issues Wells Notice to Robinhood Over Crypto

  • More people will be able to engage in the financial markets more actively since they will have access to advanced investment instruments and guidance.
  • Retail investors will have access to the same superior information and insights as larger investors (i.e. institutions), enabling them to make more confident and well-informed investment decisions.
  • By making sophisticated financial instruments more accessible to a larger group of people, the disparity between affluent and less affluent investors may be reduced.

Outlook

Pluto's advanced AI capabilities will be integrated, giving every day investors access to tools and insights that were previously only available to their richer clientele. This will promote financial inclusion and will help lessen gaps in investment returns. With AI technology developing at a rapid pace for retail investors, Robinhood is well positioned to capture the value by enabling complex investment tools available to all investors.


NCFA Jan 2018 resize - Robinhood Acquires AI Platform Pluto Capital IncThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Robinhood Acquires AI Platform Pluto Capital IncFF Logo 400 v3 - Robinhood Acquires AI Platform Pluto Capital Inccommunity social impact - Robinhood Acquires AI Platform Pluto Capital Inc

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Robinhood Acquires AI Platform Pluto Capital Inc




 

Beyond QR Codes. Enhance Fintech Security with GenAI

QR Codes | Jul 3, 2024

Freepik QR Codes 300x200 - Beyond QR Codes.  Enhance Fintech Security with GenAI

Image: Freepik

Generative AI Visual Inputs as a Secure Alternative to QR Codes

The swift adoption of QR codes for contactless payments across the globe has brought to light security concerns, such as malware dissemination, phishing, and data theft. As smartphone technology and artificial intelligence (AI) continue to progress, generative AI visual inputs—which offer improved security and a seamless user experience—present a viable replacement for QR codes.

The Rise of QR Codes in Fintech

QR codes have transformed fintech by providing a simple, cost-effective way to facilitate transactions. Their popularity skyrocketed during the COVID-19 outbreak, as companies and customers sought contactless payment options to avoid direct touch. The QR code payment market is expected to expand from USD 11.2 billion in 2022 to USD 51.58 billion by 2032, owing to its convenience and the trend towards cashless transactions. Major regions like China, India, and the US have seen tremendous adoption, with platforms like Alipay, WeChat Pay, Revolut, and PayPal leading the way.

See:  How Permissioned DeFi Will Transform Global Payments

Despite their benefits, QR codes pose several security risks that can compromise user data and trust:

  • Malicious phishing attacks using QR codes can lead visitors to bogus websites that steal personal information.
  • Scanning a hacked QR code might result in data theft and illegal access to sensitive information.
  • QR codes can be used to launch downloads and install malicious software on the user's device.

Popular Non-QR Code Payment Solutions that Improve Security

To improve security and prevent fraud in fintech, various alternatives to QR codes use modern technologies to provide more safe and dependable payment solutions.

  • Biometric authentication uses unique biological traits such as fingerprints, facial recognition, or iris scans to verify users. Biometric data is difficult to copy, which increases security and reduces the danger of unwanted access. Apple's Face ID and Touch ID are commonly utilized in mobile payment systems. See: Amazon's Pay by Palm.  Although see:  India Biometric Data Breach Highlights Cybersecurity Risks.
  • Near Field Communication (NFC) --> Enables devices to communicate when they are close together; often used in contactless payment systems. NFC transactions are encrypted and frequently require extra authentication (such as a PIN or biometric verification). Google Pay and Apple Pay employ NFC technology to provide secure contactless payments.
  • Tokenization --> replaces sensitive payment information with unique tokens that cannot be used outside of the transaction. Even if intercepted, tokens are worthless outside their original context, dramatically lowering the risk of data breaches. Many payment processors, such as Visa and MasterCard, use tokenization for online transactions.

See:  Tokenisation - The New Rails of Finance

  • Dynamic Card Verification Value (CVV) --> Unlike typical credit cards, which use a static CVV, dynamic CVV uses a changing CVV code for each transaction. Reduces the possibility of card-not-present (CNP) fraud because the dynamic CVV is only valid for a limited time. Some banks and credit card firms have begun to issue cards with dynamic CVV technology.
  • Invisible payments and voice recognition --> Transactions can be completed without the requirement for physical interaction, typically by voice commands or automatic detection. Reduces the risk of physical card skimming by utilizing voice biometrics for safe authentication. Amazon Go stores accept invisible payments, and Google Assistant and Amazon Alexa use speech recognition for transactions. See:  The Necessity of Copyrighting Your Voice in 2024
  • Artificial Intelligence and Machine Learning --> Utilizes AI and ML algorithms to detect and prevent fraudulent activities by analyzing transaction patterns and user behavior. Can identify anomalies in real-time, providing advanced fraud detection and prevention. Fintech companies like Stripe and PayPal use AI-driven systems to monitor and secure transactions.  See:  PayPal Ventures Co-Leads $30 Million in AI Pioneer Rasa

Generative AI for Fintech Payments

How about using generative AI visual inputs instead of QR codes for secure transactional payments using AI and smartphone technology? Here's how it could work and what the possible benefits are.

  • Use Visual Recognition and Contextual Understanding

Generative AI can analyze visual content such as advertisements, posters, and product packaging. This AI can understand and interpret text, logos, images, and other elements to provide relevant information and actions. When a user points their smartphone camera at an advertisement, the AI can recognize the brand, extract key information, and display interactive options.

See:  Google’s Vision for a Real-Time, Multimodal AI Assistant

For example, it can identify a fast food advertisement and show nearby outlets, current promotions, or even allow direct ordering. Google Lens is already a step in this direction, enabling users to identify objects, translate text, and find product information by simply pointing their camera at an item​.  This functionality streamlines the user experience and mitigates the risk of malicious QR codes.

  • Enhance with Augmented Reality (AR) Overlays

Artificial intelligence-powered augmented reality can overlay digital information on actual locations, improving the user experience. In a retail context, AI may overlay product details, reviews, and buy alternatives onto objects while the consumer looks at them through their smartphone camera. This lowers the necessity for physical interaction while improving security. IKEA's AR software enables consumers to visualize furniture in their house, enhancing the buying experience.

  • Security and Fraud Protection

AI can provide an additional degree of protection by evaluating the validity of visual content and ensuring that the information presented is accurate and safe.

See:  How GenAI Is Transforming Risk and Compliance in Banking

AI algorithms can cross-check visual inputs against known databases to prevent phishing and fraudulent activity, making them a more secure alternative to QR codes, which are easily tampered with.

Conclusion

The popular usage of QR codes in fintech has undeniably changed the way we do transactions, but their security flaws must be addressed. Generative AI visual inputs are an appealing option that improves security and provides a more intuitive user interface. As AI technology advances, its incorporation into fintech will most certainly pave the way for safer, more efficient payment solutions.


NCFA Jan 2018 resize - Beyond QR Codes.  Enhance Fintech Security with GenAIThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Beyond QR Codes.  Enhance Fintech Security with GenAIFF Logo 400 v3 - Beyond QR Codes.  Enhance Fintech Security with GenAIcommunity social impact - Beyond QR Codes.  Enhance Fintech Security with GenAI

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Beyond QR Codes.  Enhance Fintech Security with GenAI




 

Google’s AI Boom Drives 50% Rise in Carbon Emissions

Responsible AI | Jul 3, 2024

Modern data center green energy integration and the balance between AI growth and sustainability - Google’s AI Boom Drives 50% Rise in Carbon Emissions

Image created with assistance by AI

Increased AI operations are having a major impact on Google's environmental footprint.

  • Google's carbon emissions have risen by roughly 50%, owing mostly to growing energy demands from AI technology.
  • The enormous computing power necessary for AI training and operations has resulted in increased energy consumption in data centres.
  • The integration of AI and digital services creates enormous environmental issues, highlighting the importance of sustainable growth and energy consumption control.

Energy Demands of AI

Google's carbon emissions have increased by approximately 50%, due mostly to the increased energy demands of its artificial intelligence (AI) operations. The processing power required to train and run AI models is massive, resulting in increased energy usage throughout Google's data centres. This increase emphasizes the broader sustainability issues raised by the rapid expansion of AI and other digital technologies. Despite major expenditures in renewable energy and advances in energy efficiency, the rate of digital and AI growth frequently outpaces these improvements, resulting in an overall increase in carbon emissions.

AI technologies require a lot of energy. Training advanced AI models entails processing massive volumes of data, which consumers massive computational resources. The computational power necessary to sustain AI's growth doubles roughly every 100 days. These resources are housed in data centres, which are heavy users of electricity. In 2018, global data centres consumed over 205 terawatt-hours (TWh) of electricity, making up about 1% of global electricity consumption. Despite energy efficiency advances and renewable energy adoption by corporations like Google, the rapid expansion of AI and digital services continues to push up overall energy consumption and, subsequently, carbon emissions.

Balancing Innovation and Sustainability

To manage AI's environmental impact, there must be corresponding and continuous investment in energy-efficient technology and renewable energy sources, as well as comprehensive regulations that combine digital expansion with sustainability goals. This includes boosting energy efficiency, using more renewable energy, and supporting sustainable habits in general. Continuous monitoring and improvement of energy use in data centres, combined with advances in energy-efficient technologies, are critical for long-term digital growth.

See:  How Carbon Pricing Impacts Fintech and Investment Strategies

As fintech companies continue to innovate and expand their digital offerings, they must also consider the environmental impact of their operations. This includes investing in energy-efficient technologies, utilizing renewable energy sources, and adopting sustainable practices to minimize their carbon footprint. Fintechs, banks and financial institutions can play a crucial role in promoting sustainability by integrating environmental considerations into their product offerings and corporate strategies.

Opportunities for Fintechs and Financial Institutions

  1. Create and provide green finance options to encourage the purchase of energy-efficient and renewable energy systems.
  2. Develop investment products and portfolios that highlight environmentally conscious businesses and initiatives.
  3. Implement initiatives to lower your organization's carbon footprint, such as switching to renewable energy sources and increasing energy efficiency. Promote sustainability and assist clients in achieving their environmental objectives by utilizing AI and data analytics.
  4. Assessing environmental risks should be incorporated into financial decision-making procedures to help reduce and enhance the effects of climate change on assets.

Conclusion

The rise in Google's carbon emissions is due to AI's higher energy requirements, a massive problem facing the entire AI sector.

See:  Bitcoin’s Energy Blueprint for the AI Revolution

Industry and government need to prioritize environmental sustainability through increased use of renewable energy, improved energy efficiency, and comprehensive regulations that support sustainable digital growth.


NCFA Jan 2018 resize - Google’s AI Boom Drives 50% Rise in Carbon EmissionsThe National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - Google’s AI Boom Drives 50% Rise in Carbon EmissionsFF Logo 400 v3 - Google’s AI Boom Drives 50% Rise in Carbon Emissionscommunity social impact - Google’s AI Boom Drives 50% Rise in Carbon Emissions

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - Google’s AI Boom Drives 50% Rise in Carbon Emissions