Tag: Fintech

AI creates jobs for real people

On By mehranmuslimiblogIn AI, Big Data, FintechLeave a comment

Since the idea of robots doing jobs that a human can do there has been a widespread fear of what this might mean for the working population in the more advanced economies, where they are more likely to appear in greater numbers first. However, a new report by PricewaterhouseCooper in the UK has brought hope, because it claims that AI will actually create more jobs and compensate for those lost to automation.

The PwC report actually sticks a number on new employment opportunities. It says AI will deliver 7.2 million new jobs in healthcare, science and education by 2037. Of course, one has to balance this against the 7 million jobs lost to automation, but as PwC points out, AI is the winner and will boost economic growth.

It also estimates that around 20% of jobs in the UK will be automated over the next 20 years and that every economic sector will be affected. PwC said: “AI and related technologies such as robotics, drones and driverless vehicles will replace human workers in some areas, but it will also create many additional jobs as productivity and real incomes rise and new and better products are developed.”

AI can boost number of healthcare jobs

Fears among employees have already been raised by the use of robots like Pepper, made by Japanese firm Softbank Robotics. Pepper is already in use in banks, shops and social care, the latter being a major concern for Britain at the moment, as endless reports indicate the system is failing. However, the good news for all those healthcare and social workers is that PwcC claims that AI could make these two sectors amongst the biggest winners and generate one million new jobs, which is 20% more than the existing number of jobs in the sector.

Manufacturing, transport and logistics may lose out

On the other hand, as more driverless vehicles arrive and factories and warehouses become more automated, this employment sector could see a reduction in job opportunities, perhaps as much as 22%, or 400,000. The report also says clerical tasks in the public sector are likely to be replaced by algorithms while in the defence industry humans will increasingly be replaced by drones and other technologies.

Does AI offer hope post-Brexit?

This report may lift some spirits at a moment in British politics where things have never looked more unstable for the UK economy, if only for the reason that the business of exiting the European Union has raised more questions marks about the future of British trade and industry than it has been able to answer. However, if AI can create new jobs for working people and at least match the loss of jobs to automation, there’s a hope that the fallout from whatever the negotiations bring over the next few months will not hurt as much as many in business fear.

UK’s FCA opens up sandbox for more play

On By mehranmuslimiblogIn Fintech, GovernmentsLeave a comment

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In a week where the British government is losing Cabinet ministers on an almost daily basis as a result of party in fighting over the Brexit negotiations, making the pound sterling plunge in value, the UK’s financial regulator, the Financial Conduct Authority (FCA) has taken a bold step forward in recognising the potential of blockchain-based startups.

The FCA started a regulatory ‘sandbox’ some time ago in 2016 and it has just added its fourth cohort of startups to the process. The FCA received a total of 69 applications to participate in the exploration, and this week it has added 11 of the 29 successfully accepted applicants.

In its announcement regarding Cohort 4, the FCA revealed, “Applications came from a diverse range of firms operating across the financial services sector including in areas such as consumer credit, automated advice and insurance.”

The FCA also said, “We have accepted a number of firms that will be testing propositions relating to cryptoassets. We are keen to explore whether, in a controlled environment, consumer benefits can be delivered while effectively managing the associated risks.”

The startups in Cohort 4

One of the businesses in this cohort is 20/30. This London based financial firm is using the DLT to allow “companies to raise capital in a more efficient and streamlined way,” and it is partnering with the London Stock Exchange and Nivaura. According to the FCA’s press release, 20/30 will be issuing an equity token on the Ethereum blockchain. Capexmove, also in this new cohort is offering a similar service.

Another that stands out is called ‘Chasing Returns’. This startup is described as “Psychology-based risk platform that promotes good money management discipline and improves outcomes for customers that trade Contracts for Difference (CfDs). It acts like a digital coach, encouraging adherence to money management and risk exposure levels.”

While for those people with ID problems, ‘Community First Credit Union’ offers an “Initiative to facilitate creation of an identity token that supports customers who lack traditional forms of ID, in order to assist them in accessing bank account services in the UK.”

The latter perhaps answers the issues that many British immigrants have faced recently, most notably those who arrived from the Caribbean on the ‘Windrush’ and in recent months have found themselves at risk of deportation, because of lack of documentation establishing their British citizenship and right to stay.

The FCA has chosen a fascinating selection of startups for Cohort 4 and indicates its willingness to be open-minded and inclusive when it comes to envisioning a future for blackchain-based businesses. It certainly seems to be making better progress with blockchain than the government is with Brexit.

Bermuda is banking on the blockchain

On By mehranmuslimiblogIn Blockchain, FintechLeave a comment

Fintech

Something unusual has just happened in Bermuda, the Caribbean island paradise, retreat for the rich and offshore haven — the government has told the island’s banks that they are just not moving fast enough into the cryptocurrency market. It’s a rare occurrence, because most governments are taking a cautious approach to cryptocurrency and none seem to be insisting the conventional banking industry adopts a crypto-friendly approach.

A new class of bank for crypto

In fact, Bermuda is going even further. It is making amendments to its Banking Act so that it can establish a new class of bank that will be able to serve the crypto community, fintech startups and any other type of business that is blockchain based.

The local banks have only themselves to blame for this radical move. They have been denying service to crypto companies, citing fears about risk and regulatory concerns as the reason for shutting the door in potential clients’ faces.

Government supports fintech growth

The government takes a rather different view: Bermudian Premier and Minister of Finance David Burt said that the banks’ stance “cannot be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians.” It appears that Bermuda wants to emulate the successes of jurisdictions like Gibraltar and Malta in becoming safe havens for blockchain explorers, and they all share the characteristic of being relatively small in terms of population, but big on financial services that serve the whole world. Of course, this is perfectly understandable: if you don’t have the environment to be a manufacturing or agricultural economy, financial services are the best way of ensuring that your economy thrives, especially if you keep introducing innovations that attract companies or individuals who can’t find a banking home elsewhere.

David Burt also said in parliament: “The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services. In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.”

Bermuda welcomes Binance and Shyft

He clearly sees that Bermuda’s future must not be held hostage by the banks’ fear of the blockchain. This year Bermuda has already signed deals with Shyft network, which will reportedly provide $10 million on blockchain technology education and economic development on the island, and Binance is on Bermuda to establish funding for educational programmes related to fintech and blockchain. It has said it wants to build a “global compliance base” on the island.

It’s a smart move by the Bermuda government and is yet another step forward in opening up the banking sector worldwide to the reality that businesses operating in the crypto sector need forward-thinking banking — and that they’re going to grow in strength rather than disappear. Ignore them at your peril.

The State Of Digital Business Transformation, 2018

On By mehranmuslimiblogIn Big Data, Digital Innovation, FintechLeave a comment

These and many fascinating insights are from the IDG’s 2018 State of Digital Business Transformation (12 pp., PDF, no opt-in). The study’s goals are to gain a better understanding of how organizations are evolving to a digital business model in regards to how they are revising technology strategies, changing organizational structures and processes, and innovating to provide a unique customer experience. Respondents were selected from CIO, Computerworld, CSO, InfoWorld, ITworld and Network World tech buyer audiences. The majority of respondents are IT executives and professionals. Please see page 10 of the study for additional details regarding the methodology. “Technology has been a driving force in business transformation for years, but the pace at which new technologies are launching has reached its fastest speed. Now is the time to create efficiencies and differentiate through the customer experience,” said Brian Glynn, chief revenue officer, IDG Communications, Inc.

Key takeaways from the study include the following:

  • 89% of enterprises have plans to adopt or have already adopted a digital-first business strategy with Services (95%), Financial Services (93%) and Healthcare (92%) leading all industries. Education, high-tech, manufacturing, retail, and government are also quickly adopting digital-first strategies to improve process efficiencies and meet and exceed customer expectations.

Digital-First-By-Industry

  • Big Data/Analytics (58%), mobile technologies (59%), private cloud (53%), public cloud (45%) and APIs and embeddable technologies (40%) are the top five technologies already implemented. Additional technologies currently in production include Application Performance Monitoring (APM) (18%), microservices and containers (15%), Software-defined storage (SDS) (14%) and Software-defined networking (SDN) (14%). Artificial Intelligence (39%), machine learning (34%), and the Internet of Things (31%) are the top three technologies enterprises are researching today.

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  • Big Data/Analytics, mobile technologies, and private cloud contribute most to an organization’s revenue growth. IDG analyzed which technologies are contributing most and least or revenue growth. With 49% of enterprises saying excelling at managing business performance through data availability and visibility is what defines their digital business, it’s understandable why Big Data/Analytics is perceived by 70% of IT executives as contributing to revenue growth.

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  • 61% of enterprises say IoT plays a role in their digital business strategies with manufacturing and high-tech leading all other industries. Just 39% of small & medium businesses (SMBs) say IoT plays a role in their digital business strategies today. Finance and government industries are the least likely to adopt IoT as part of their digital business strategies due to legacy systems being very difficult to change or integrate with and security concerns.

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  • 73% of manufacturing executives or IT decision makers (ITDM) says IoT plays a role in their digital business strategy, with 69% saying IoT is used to monitor equipment and machinery today. 24% of manufacturing IT executives interviewed say IoT is in production in a business unit or division. Creating a business case in manufacturing for IoT begins by looking at how quality, time-to-market and production performance can be improved. The manufacturing metric Overall Equipment Effectiveness (OEE) is one of the primary catalysts driving real-time monitoring including IoT adoption across manufacturing today.

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  • Start-ups can increase revenue by 34% relying on digital-first strategies, with all enterprises increasing revenue by 23% with new product and service offerings being the largest contributor to revenue growth across all companies. 30% of all enterprises interviewed by IDG say that new product and service offerings are the primary sources of revenue growth for their companies, followed by adding new capabilities inside the company and improving sales capacity to cross-sell and upsell. 22% say that their improved ability to integrate and analyze company, customer and external data is contributing to increased revenue. 22% also credit digital business strategies with the ability to increase product and service delivery speeds. New partnerships, global or regional expansion and M&A (merger & acquisition) activity are the remaining factors driving revenue growth. Multiple responses were allowed to the original survey.

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  • Enterprises’ definition of a digital business varies from enabling worker productivity to meeting customer experiences. 52% of enterprises say enabling worker productivity through tools such as mobile, data access, and AI-assisted processes are the essence of their digital business strategy. 49% say better managing business performance through data availability, and visibility is what defines their digital business, and 46% say meeting customer experience expectations using digital technologies is the center of their digital business.

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  • 62% say delivering an excellent customer experience as measured by customer satisfaction scores defines success as a digital-first business. The intensity to gain high customer satisfaction scores in retail is high, with 79% saying this is by far their most important benchmark of a successful digital-first business. 70% of manufacturers define the digital-first business strategies as successful when they improve process efficiency through automation. 53% of services companies and 51% of finance companies define digital-first business success by their ability to accelerate time-to-market.

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Contributor: Louis Columbus – Source