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Citi GPS on Transformative Fintech Opportunities

Innovation | Jun 3, 2024

Citi GPS Disruptive Innovations X - Citi GPS on Transformative Fintech Opportunities

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Citi GPS Disruptive Innovations Report and Fintech Opportunities

Citi Global Perspectives and Solutions group has recently published it's tenth annual report, 'Disruptive Innovations X' (download 68 page PDF report here).  While the report covers a variety of opportunities, this article focuses on applying insights from sections about the prospects of "autonomous agents" and "smart money," paving the way for transformative developments in the financial industry including:

  1. AI-Generated Finance: Beyond Risk Management
  2. Employees that Support AI in Business Operations
  3. Autonomous Financial Adviser and Trading Agents

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Simply put, artificial intelligence is empowering the potential to improve productivity, client interaction, and financial planning in ways never seen before, in addition to posing a threat to existing practices.

1. Financial Generative AI: Beyond Risk Management

By expanding its applications beyond conventional structured data usage into the domain of unstructured data, Gen AI (Generative Artificial Intelligence) has the potential to overhaul the financial services industry even further. Emails, transcripts, papers, and reports are all included in this, and they may greatly improve marketing, customer service, and operational effectiveness.

  • By streamlining, summarizing, and analyzing financial data more effectively, Gen AI can offer more insightful information for decision-making.
  • The automation of financial software development can be streamlined to increase efficiency and cut costs by automating repetitive coding operations and software vulnerability testing.
  • Financial institutions can more effectively target and engage consumers by using AI to develop hyper-personalized marketing tactics.
  • Real-time sentiment analysis and enhanced AI-powered voice assistants can greatly improve customer engagement and service quality.

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Fintech businesses can gain a competitive edge by creating cutting-edge AI-driven systems for customer support and information management. Companies like Shopify, which incorporates AI to improve its e-commerce platform, and Nuance Communications, which employs AI for customer engagement solutions are two notable Canadian businesses making progress in this area.

2. AI Agents in Business Operations

By automating jobs and increasing worker productivity, autonomous agents (AI assistants) driven by large language models (LLMs) have the potential to completely change how businesses operate and consumers engage and purchase services.

  • AI assistants free up staff members to concentrate on strategic goals by handling administrative duties like scheduling, resource management, and internal communications.  At a time when Canada's productivity is seriously in question, bringing workplace efficiencies is essential.
  • AI-powered customer service representatives can handle a higher volume of contacts and offer more individualized assistance, improving client happiness and cutting expenses.

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  • Businesses can create custom AI assistants and integrate them into various business processes for increased efficiency and engagement. Examples of such platforms are Meta's AI Studio and OpenAI's Assistants API.

By implementing AI helpers, businesses can cut expenses and increase efficiency significantly. Businesses such as Canada's Cohere are leaders in creating (enterprise) AI solutions suited for commercial use, demonstrating how AI is revolutionizing corporate processes.

3. Financial Advisory and Trading Autonomous Agents

By automating difficult financial operations and offering individualized investment plans, autonomous agents powered by cutting-edge AI have the potential to completely transform the trading and financial consulting industries.

  • AI agents are able to automate individualized portfolio management and financial guidance based on the requirements and preferences of each client.
  • Compared to human traders, AI-driven trading algorithms are more efficient at analyzing market patterns, executing deals, and managing risk. This approach could result in more consistent returns and a reduction in errors.
  • AI can keep an eye on changes to regulations and guarantee compliance, which lowers the possibility of legal problems and enhances risk management in general.

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Fintech companies can compete with larger investment institutions by simplifying and automating trading activity and incorporating autonomous financial advisors. Businesses that are leading this revolutionary change, such as Wealthsimple in Canada, are already using AI to offer a range of automated wealthtech investment services.

Canadian Business AI Adoption Rates Q1 2024

  • According to Statistics Canada, approximately one in seven Canadian organizations have used or planned to deploy generative AI as of the first quarter of 2024.
  • However that figure increases to 24.1% usage for information and cultural industries.
  • Accelerating content generation (68.5%) and enhancing customer experience (37.5%) are two of the main justifications for generative AI adoption.
  • Compared to smaller businesses, larger enterprises are more likely to use this technology.

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  • 12.8% of businesses by the first quarter of 2024 are using GenAI (or thinking about it) to either automate tasks or replace employees.
  • Nearly three out of four Canadian enterprises have not given it any thought!

Conclusion

These opportunities show how AI and autonomous agents combined with smart money thinking have the potential to revolutionize the financial industry, benefiting consumers, fintech innovators, and investors alike.


NCFA Jan 2018 resize - Citi GPS on Transformative Fintech OpportunitiesThe 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

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