AI Could Destroy Traditional Banking As We Know It


Artificial intelligence (AI) is poised to massively disrupt traditional financial services. The World Economic Forum identifies nine ways AI is creating new threats, new opportunities, and new competitive forces for financial institutions. The result may be a marketplace where only the largest and most specialized niche players survive. Subscribe to The Financial Brand via email for FREE!Mid-size and small banks and credit unions could soon find themselves at a serious competitive disadvantage. Ongoing developments in artificial intelligence have the potential to significantly change the way back offices operate and the experiences consumers receive from financial institutions.

World Economic Forum: AI is transforming the financial ecosystem, which may be destabilized


The World Economic Forum released a new report titled "The New Physics of Financial Services – How artificial intelligence is transforming the financial ecosystem." "Artificial intelligence is fundamentally changing the physics of financial services. It is weakening the bonds that have held together the component parts of incumbent financial institutions, opening the door to entirely new operating models and ushering in a new set of competitive dynamics that will reward institutions focused on the scale and sophistication of data much more than the scale or complexity of capital. A clear vision of the future financial landscape will be critical to good strategic and governance decisions as financial institutions around the world face growing competitive pressure to make major strategic investments in AI and policy makers seek to navigate the challenging regulatory and social uncertainties emerging globally. Building on the World Economic Forum's past work on disruptive innovation in financial services, this report provides a comprehensive exploration of the impact of AI on financial services.

WEF warns: AI could lead to collapse in the global financial system


There's little doubt that artificial intelligence will reshape the world as we know it. It'll revolutionize the way we do business, communicate, and even raise our kids. Presumably, the benefits of AI will outweigh the bad, but a new report from the World Economic Forum (WEF) shows we might just have to weather a global crisis before we ever get the chance to find out. The problem, according to the WEF, stems from the way global financial markets are incorporating machine learning and AI. "The dynamics of machine learning create a strong incentive to network the back office," says the report's lead author, Jesse McWaters, head of the AI in Financial Services Project at WEF. "A more networked world is more vulnerable to cybersecurity risks, and it also creates concentration risks."

Congo Requests Financial Support From Donors Amid Economic Crisis

U.S. News

"In light of the current context, (the government) awaits in particular from these (partners) balance of payments support and budget support to allow it to confront the current economic difficulties provoked by the collapse of prices of raw materials on the world market," Nsomue wrote.

Will AI Disrupt Our Financial Systems?


Artificial intelligence (AI) is poised to significantly disrupt the global financial services system--creating both new opportunities and increased vulnerabilities--according to a recent August 2018 report, The New Physics of Financial Services: How artificial intelligence is transforming the financial ecosystem, published by the World Economic Forum (WEF) in collaboration with Deloitte. WEF predicts the eventual fall and elimination of mid-sized financial service companies as AI will benefit scale-based players that can compete on cost, and present agile players with new market opportunities in underserved niche segments. According to DBR Research, only 7 percent of banks with assets between $1 billion and $10 billion dollars have deployed an AI solution, a sharp contrast to 48 percent of banks with greater than $50 billion in assets. WEF predicts that early adopters of AI will transform their back-office operations from a cost center to a revenue-generating external service as a cloud-based "software as a service" (SaaS) provider. For example, U.S.-based Blackrock, one of the world's largest asset managers, has developed a hosted proprietary risk-analytics and portfolio management platform called Aladdin that utilizes AI machine learning as a differentiator.