Anish Kapoor, CEO of AccessPay, explains, “In contrast to our personal lives, where highly automated digital banking and payments are now the norm, banking processes for businesses and institutions are full of manual processes. In our annual survey of finance and treasury professionals, we wanted to understand the state of finance transformation in corporates and financial institutions and determine how and where they are focusing their digitisation efforts as we start 2025.”

Key findings from the report include the following:

1. Account name verification tops firms’ technology priorities

For most companies, finance transformation is a work in progress. Just 13% had fully digitised, while 69% stated they were in the midst of digital transformation with a combination of manual and digital processes. Financial services firms were the most advanced with their finance transformation efforts, and legal firms the least.

The top three technology priorities for finance teams are implementing CoP¹ or ANV² technology (50%), payment automation (47%) and cloud technology adoption (39%). Despite the headlines, GenAI³ was cited as a high priority by just 15% of respondents, though 46% considered it a medium priority.

2. Minimal action taken for new ISO 20022 mandatory data requirements

Corporate preparations for the new ISO 20022 mandatory data requirements for CHAPS transactions⁴ have been limited. 26% of respondents were unaware of ISO 20022, while 50% said they were aware of the format but had not made any preparations.

The new data requirements start to come into play in May 2025, when the Bank of England will require financial institutions to include PoP⁵ codes and LEIs⁶ in all transactions. They will eventually affect all corporates, who will need to plug data gaps and update finance systems.

3. Invoice scams rank as top fraud concern

The top three fraud concerns of companies were invoice fraud (60%), fraudulent online payments (53%) and impersonation fraud (47%). To combat fraud, firms were most likely to rely on staff training on spotting fraud (72%), followed by CoP/ANV technology (58%). However, there was a significant divergence between sectors in the approach to fraud prevention, with financial services firms most likely to adopt a multi-layered approach.

“Finance and treasury teams play a vital role in helping companies perform at their optimum, but there is still a lot of progress to be made in terms of digital transformation,” comments Kapoor. “Many are focused on day-to-day operations and regulatory compliance but struggle to understand the extent to which technological advances can transform the finance function. This is where AccessPay comes in with its consultancy services to advise on finance transformation and its bank-integration technology platform to assist with payment automation, ISO 20022 readiness, and fraud prevention.”

Download the full report here to learn more about digital transformation in the finance sector.

Notes:

1. Confirmation of Payee – this is the scheme run by the PSR for payment service 
   providers

2. Account Name Verification – this refers to commercial ‘CoP’ technology

3. GenAI – generative artificial intelligence

4. Bank of England, Mandating ISO 20022 enhanced data in CHAPS

5. Purpose of Payment Code

6. Legal Entity Identifier

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As 2024 draws to a close, it is evident that this year has been anything but typical for the world of financial crime and compliance. The landscape has been reshaped by staggering financial crime statistics, evolving regulations, and mounting geopolitical tensions. The impact of these changes has been felt across the globe, influencing both immediate responses and long-term strategies.

Sanction Scanner’s 2024 Annual Report provides an in-depth exploration of the evolving financial crime landscape, focusing on pressing challenges, regulatory advancements and technological innovations shaping the compliance industry. This report delves deeply into the changing dynamics of the financial sector and current trends in compliance. It also provides valuable insights into innovative strategies used in the fight against financial crimes.

1. Global Financial Crime Insights: $3.1 trillion in illicit funds moved globally, underscoring the need for enhanced AML strategies
2. Geopolitical Tensions: Analysis of how conflicts, such as those in the Middle East and Ukraine, complicate compliance efforts
3. Regulatory Progress: Key updates, including the U.S. Corporate Transparency Act (CTA) and EU’s 6AMLD, aimed at improving beneficial ownership transparency and harmonizing AML standards
4. Technological Advancements: The role of AI, blockchain and automation in combating sophisticated threats from deepfakes to synthetic fraud.

This comprehensive report highlights the critical intersections of regulation, technology and global cooperation required to combat rising financial crime threats effectively.

Dive into the trends and solutions that defined 2024 and prepare your organization for the challenges ahead.

Download the full report here.

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Prediction Machines: The Simple Economics of Artificial Intelligence

In this read, the book’s authors, Ajay Agrawal, Avi Goldfarb, and Joshua Gans, delve into the world of AI personalization and how it is transforming industries, making prediction easier. It examines complex decision-making and how AI can be used to make these processes more efficient.

Although this advancement is relatively new, there is excitement at the power of AI. We have seen in the past how new technology can transform an industry. The development of the internet and increased accessibility has created an online market never before imagined. Shoppers can buy products globally, and in some cases expect next day delivery. In the world of online entertainment, sites like Chumba Casino online showcase the advancement of the betting sector. Gamers no longer have to play in-person but can use the online casino to experience a wide variety of slot games. The technology has not only created a dynamic user experience but also appealed to a wider customer base.

Agrawal and co. also explore how the financial industry will be affected by the latest technology enhancement regarding AI delving into how it is trying to predict future needs of financial customers by using algorithms that analyze spending, lifestyle patterns, and more.

The AI Book: The Artificial Intelligence Handbook for Investors, Entrepreneurs, and FinTech Visionaries

This book, written by Susanne Chishti, Ivana Bartoletti, Anne Leslie and Shan Millie, is a must-read for those interested in how AI came to be used in the fintech sector. It covers everything from blockchain to the role of AI in AML and other fraud detection efforts. In truth, it makes you wonder how the industry ever survived without it. Not only can it be used by card companies like Mastercard to help protect banks and institutions in real time, it can analyze a huge amount of data, which can significantly reduce the risk of fraud. In what is truly an interesting read, you will be astounded by the power of AI in the fintech area.

AI Superpowers: China, Silicon Valley, and the New World Order

This book may not be primarily about the fintech sector, but Kai-Fu Lee gives the reader a fascinating insight into the world of AI and how it has transformed several industries, from China to Silicon Valley. The book outlines the technology’s disruptive qualities and how it works to improve efficiency and harness the power of data. Lee’s discussion on AI may help those interested in fintech navigate the sector as AI improves and develops.

Source: Unsplash

Understanding the use of AI in the fintech sector is the first step for anyone looking to get into this area of expertise. With that knowledge, users can then begin to leverage it and really change the face of the industry they are working within. A good stepping stone on this journey would be any of these three books.

The post Three Books to Read About AI in the Fintech Sector appeared first on Fintech News.

There is also growing demand for greater efficiency and transparency in financial transactions. Legacy processes at incumbent banks are often cumbersome and opaque. FinTech innovations like automated investing platforms and digital wallets offer streamlined digital experiences.

Drivers of change

These drivers of change have opened opportunities for agile startups to gain footing by focusing on niches overlooked by established institutions. The report notes FinTech growth has been particularly marked in the payments sector, with 93 of the top 335 FinTech “unicorns” globally providing various payment solutions.

While initially seen as disruptive, collaboration between FinTechs and incumbent banks is increasing. Each side brings complementary strengths. Startups offer innovative technologies and business models, while banks provide regulatory expertise, funding and extensive customer bases.

However, FinTechs still pose competitive threats to traditional banking, especially in areas like payments, lending, and personal finance management. Their lower operational costs and increased use of data for personalization allow them to provide better user experiences at lower fees.

Regulators catching up

The report emphasizes that regulators across Europe have struggled to keep up with the rapid emergence of new markets, products and risks created by FinTech. Many startups have benefited from “light touch” oversight in their early stages.

But as the industry matures, regulators are taking a more active role in balancing encouraging further innovation with managing risks around consumer protection, fair competition, and financial stability.

Areas of concern highlighted in the report include potential over-indebtedness from new digital lending platforms, growing risks from services reliant on harvesting and exploiting consumer data.

The report notes EU policymakers aim to facilitate FinTech innovation by providing regulatory clarity, open banking rules to spur competition, and fostering collaboration through innovation hubs.

A difficult balance

But finding the right balance remains an ongoing challenge. The report advocates for proportionate regulation tailored to specific activities and risks, rather than restrictive one-size-fits-all rules. It also calls for restrictions on higher risk offerings to retail consumers, like crypto assets.

In its conclusions, the report underscores the need for regulators to continue enhancing their technological expertise and agility to keep pace with the rapid digital transformation of finance.

It also identifies 4 key scenarios for how regulation and market dynamics could shape the future evolution of the fintech industry across Europe.

1. The Agile Open Market (AOM) scenario, which foresees a lightly regulated environment that enables Fintechs to flourish while also prodding incumbent banks to innovate.
2. The Regulated Traditional Dominance (RTD) scenario, with stringent regulations that favor incumbent banks and hinder Fintechs
3. The Collaborative Innovation (CI) scenario, in which banks and Fintechs cooperate extensively within lighter oversight
4. The Hybrid Integration (HI) scenario, where heavier regulations limit Fintechs and help banks integrate select innovations while keeping market control.

Overall, the Makers&Shapers report “FinTech innovation. A balancing act between disruption and regulation” provides valuable insights into the profound changes underway in European finance thanks to FinTech innovation. It highlights the delicate balancing act required to manage risks while safeguarding consumer welfare and market stability.

At the same time, it identifies targeted actions that can create an enabling environment where startups and incumbents alike can leverage technology to expand consumer choice, efficiency and competitiveness. EIT Digital invites stakeholders across the financial services ecosystem to engage with us as we keep exploring these crucial issues through practical education, research and entrepreneurship programs.

Let’s continue the conversation and join forces to shape the future of digital finance in Europe!

Download the full report here.

EIT Digital: who we are?

We believe in making and shaping a competitive digital Europe that is inclusive, fair and sustainable and aims at global impact through European innovation fueled by entrepreneurial talent and digital technology.

We embody the future of innovation by mobilizing a pan-European multi-stakeholder open-innovation ecosystem of top European corporations, SMEs, startups, universities and research institutes, where students, researchers, engineers, business developers and investors address the technology, talent, skills, business and capital needs of digital entrepreneurship.

We build the next generation of digital ventures, digital products and services, and breed digital entrepreneurial talent, helping businesses and entrepreneurs to be at the frontier of digital innovation by providing them with technology, talent, and growth support.

For more information, visit www.eitdigital.eu

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The expansion of the web 3.0 blockchain market will be spurred by the widespread adoption of this technology for use in business settings, particularly in the realms of smart contracts, digital identity, documentation, and exchanges. When it comes to your online persona in the Web 3.0 era, you should use Self-Sovereign Identity (SSI).

In SSI, the user is at the heart of the identity system, as all data is under their direct control. Using SSI, users’ private data is not required to be stored in a centralized location, and users have more say over the information they choose to make public. The growth is anticipated to be aided further by the advantages of SSI in Web 3.0.

Web 3.0 cryptocurrency adoption for transaction automation on the internet is also expected to contribute to the industry’s expansion. Web 3.0 cryptocurrency trading, however, boasts superior advantages like decentralization and expansion prospects. The fact that you do not need permission from higher-ups is a bonus as well.

In addition, countries are working to legalize cryptocurrency to entice new players and foster innovation. For instance, Dubai passed a law in March 2022 called the Dubai Virtual Assets Regulatory Authority law to control the use of blockchain technology and its associated assets.

Web 3.0-blockchain market growth is anticipated to be aided by the brisk pace of online and brick-and-mortar retail sales. Web 3.0 cryptocurrencies are becoming increasingly popular as a means of automating online transactions, which is expected to fuel the demand for web 3.0 blockchain.

Growth in the adoption of web 3.0 blockchain will also be aided by the widespread adoption of digitalization into daily life and the widespread implementation of blockchain technology. Opportunities for web 3.0 blockchain markets to make money are expected to increase as demand rises for 4G and 5G networks.

Key Takeaways

·         In 2021, the public was the market’s primary customer base. The need for public blockchain technology has expanded because of its widespread availability; anyone with an internet connection may use it without paying any fees or requiring special permissions, which has contributed to the sector’s expansion.

·         In 2021, cryptocurrency was a huge part of the economy. It is becoming increasingly important for businesses to have access to reliable bitcoin transaction services. Growth of demand for web 3.0 blockchain is foreseen thanks to the usage of blockchain and smart contracts by Web 3.0 cryptocurrencies, which streamline transactions and do away with the requirement for a trusted third party.

·         Over the course of the projected period, retail and online shopping are expected to increase at a significantly faster rate than other categories. Web 3.0 blockchain is predicted to rise in the retail and e-commerce sector as a result of rising consumer demand for its many advantageous features, including lower prices, faster transactions, higher levels of security, and greater transparency.

·         The Asia-Pacific region is expected to expand at a rapid rate during the forecast period. Asia and the Pacific is a growth in the adoption of web 3.0 blockchain because of developments in 5G technology, AI, and machine learning. Investments in Web 3.0 R&D are expected to rise, further contributing to expansion.

Competitive Landscape

The companies that make up the demand for web 3.0-blockchain business have relied heavily on partnerships and collaborations to introduce new products and provide blockchain solutions to different sectors. The opportunity to streamline organizations’ payment processes is what has fuelled interest in web 3.0 blockchain technology. Companies also worked together to pool their knowledge and resources in order to provide clients with comprehensive services. In order to reach a wider customer base, many companies have opened locations in different parts of the world.

In order to compete, businesses in the blockchain industry are attempting to incorporate cutting-edge technologies like blockchain and artificial intelligence into their products and services. Companies can increase their value to customers and their ability to compete by investing in cutting-edge technology. By incorporating blockchain technology, supply chains can become more efficient, trustworthy, and adaptable.

These insights are based on a report on Web 3.0 Blockchain Market by Future Market Insights

The post Web 3.0 Blockchain Market Valuation to reach US$ 116.51 Bn by 2033, with a strong CAGR of 44.9% during the Coming Decade: Future Market Insights, Inc. appeared first on Fintech News.

E-commerce Market Offers Consumer Diverse BNPL Options

Customers now have easy access to BNPL alternatives because of the growth of e-commerce. Currently, e-commerce customers have the option of selecting from a choice of BNPL suppliers with varied periods. While the customer may make retail purchases even without cash, he or she is also free of the stress of paying interest, as with credit cards or personal loans.

To entice clients to test BNPL services, e-commerce companies are introducing attractive incentives. As a result, a consumer may simply buy anything from groceries to furniture at e-commerce sites using BNPL.

Growth in Developing Regions Needs Greater Attention

BNPL providers’ efforts to enter developing markets may be hampered by a general lack of knowledge about BNPL. Due to lower internet penetration in these areas, BNPL users would be a small percentage of the population. As a result, important parties must employ a variety of measures to increase internet usage and BNPL awareness.

Key Takeaways

1. Between 2017 and 2022, the BNPL market increased at an 18.9% CAGR.
2. The Buy Now Pay Later Platform market in the United Kingdom is predicted to grow at a CAGR of roughly 29.3% between 2023 and 2033.
3. During the projected period, the BNPL platform market in the United States is predicted to grow at an amazing CAGR of 27.4%.
4. The major business sector is estimated to increase at a CAGR of 21.4% over the projection period.
5. In 2023, the South Korean BNPL market was estimated to be worth US$ 1.8 billion.

Competitive Analysis

To become successful, prominent firms and startups are currently focused on specialized target areas. For example, SaveIN, an India-based Fintech firm, has introduced an offline POS installment that caters to lending demands for healthcare. It is referred to as ‘care now, pay later’. Likewise, significant players are striving to increase income through partnerships and acquisitions.

Key Market Developments

1. Afterpay will collaborate with Westpac to enhance its digital payment services in July 2021. Therefore, Afterpay customers can now simply track their spending online.
2. Mondu is a platform that allows you to buy now and pay later across markets. The platform focuses particularly on B2B payment methods.
3. Playter is a startup that focuses on using the BNPL potential for startups and scaleups. This allows firms that are short on cash to expand swiftly. As a result, using Playter, entrepreneurs may easily pay their suppliers without having to wait for a possible investor.

These insights are based on a report on Buy Now Pay Later Platform Market by Future Market Insights

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Globally, the regulatory push for open banking has increased the availability of open banking APIs, which in turn enables fintech to build new products and services. To date, however, there are still a limited number of business models and innovative products developed in each country. Greater access to a wide range of product APIs and new approaches to partnership relationships are needed from banks, while fintech should increase its focus on meeting needs in specific target markets to best seize emerging opportunities.

Platformable’s Q1 2022 Open Banking/Open Finance State of the Market Report describes the digital financial services landscape as the year commences. At the start of 2022, there were 1,537 open banking platforms worldwide.

98 countries have open banking regulations in place globally. In 2022, the next chapter in open banking regulations is continuing, with some countries embracing open finance and improved data sharing regulations:

1. Europe and the UK are expanding into open finance with the UK’s Smart Data Initiatives and the European Commission’s Digital Finance Strategy.

2. The US Consumer Financial Protection Bureau recently hosted a public consultation on the user data held by tech payment platforms, while Canada released the results of their second review of open banking.

3. In the Asia Pacific region, open finance regulations outpaced open banking with the launch of the Philippines’ Open Finance framework and an account aggregation framework in India focusing on financial data sharing.

4. Brazil’s advancements took centre stage in Latin America with the final phase launch of its open banking framework.

Europe Remains Open Banking Leader

Compared to Q4 2020, open banking API platforms have grown 175% globally. Europe remains the leader, accounting for 75% of the world’s open banking platforms.

Comparing various global regions, the UK was responsible for creating more open banking platforms than the US and Canada – 49 compared to 30 platforms available in Q4 2021. Despite this lead, however, UK banks publish fewer API products overall, offering 253 APIs compared to 296 available in the US and Canada.

New regulatory frameworks are a key driver for steady growth in open banking infrastructure in other parts of the world. The Asia Pacific region saw a 139% growth rate, reflecting the continued deployment of Australia’s Consumer Data Rights (CDR) Framework. There was also a 147% growth in the number of Latin American open banking platforms due to Brazil’s open finance progress, and Mexican incumbents offering product and service data outside of a regulatory push. In the Middle East and Africa, there was a 65% growth in open banking due to Nigerian open banking advancements.

Open Banking API Innovation Moves Beyond Compliance

Bank API Products by Category and Region, Q4 2021 (N = 5,133)

API products have grown 20% globally since Q4 2020. Regionally, Latin America saw the largest increase with a 178% rise in API product growth. The US and the UK placed second and third with 164% and 122%, respectively.

In the graph above, mandated APIs (those focusing on payments, account information, and product information) shown in dark purple comprise the majority of API product availability, outside the Russian and Eastern European markets. These numbers suggest that open API product innovation accounts for roughly 20-40% of the total offerings.

For fintech, products offered by mandated APIs are essential to allow customers to complete everyday tasks like checking their budgets or transferring money. However, fintechs need to access APIs that provide additional functionality to develop well-rounded products that meet the user journey needs of customers.

Looking at global examples demonstrates how innovation is enabling new products (and types of business models) to emerge in the open banking ecosystem.

Commerzbank: Germany

Germany’s Commerzbank conducts a two-pronged approach to APIs by offering mandated APIs (required to be provided, for free, under Europe’s Second Payment Services Directive, or PSD2) and Premium APIs, which they can sell to agreed partners and third party users, separately. By splitting their offerings, they can better enable new digital business models. Sometimes these models may seek to create new direct revenue streams (for example, by charging for the APIs). In other cases, the APIs may act as new customer acquisition channels, allowing Commerzbank to reach customer segments that were outside its direct marketing opportunities.

In Q4 2021, Commerzbank added Customers and Home Loans Light APIs to their catalogue: The Customers API streamlines onboarding into fintech apps using Commerzbank customer data. This allows fintech to simplify the customer identification process, where potential users may drop off because of having to re-enter all of their personal information. Instead, customers can log in as a Commerzbank user and securely access the fintech product without data entry duplication.

The Home Loans Light API provides a no-code widget for end-users to calculate their indicative interest rate after inputting a few relevant details. The widget lets third party websites, for example, real estate sites, home design and renovation sites, or apps that target potential home construction buyers, to easily integrate Commerzbank’s loans calculator into their websites and apps. By offering this product for free, Commerzbank can shift the integration costs onto the third parties, and open a channel to receive qualified new loan product customers.

Quanto: Brazil

Brazilian fintech platform, Quanto, supports companies who want to draw on their open banking data to improve financial decisions. Already, Quanto has been accredited in all eight open finance certifications – the maximum available to third parties under Brazil’s open banking regulations. This breadth of capabilities to securely make use of open banking functionalities (where customers consent to connect their accounts) allows Quanto to offer more complete financial service offerings that draw in data from a complex array of operational systems.

Quanto is able to combine the customer’s company data with recent market indicators and to help customers identify new financial opportunities. For one customer, this increased their loan approval rate by 28%.

The increase in open banking platforms has the potential to change the global financial landscape by encouraging the creation of new fintech products. Open banking is still very much in its nascent stage: many banking platforms still only offer the minimum (mandated) APIs required by their country’s regulations. Those banks that provide additional functionalities have the opportunity to create new digital business models and open up new avenues for their fintech partners to deliver better products to end-users. For fintech, seeking out bank platforms and building partnerships with these banks that go beyond the mandated APIs will enable a richer set of customer experiences to be embedded into their fintech apps and products.

Interested in learning more about the Q1 2022 Open Banking and Fintech landscape? View Platformable’s full Q1 2022 Open Banking/Open Finance State of the Market Report.

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As we’re entering another bear market, with dropping prices and rising crypto skepticism, it is perhaps a good time to ask: what is the long-term potential of crypto technologies anyways? 

Long-term, I would argue, it may be the most important technology stack ever invented. That’s because it allows civilization to do three things: 

1. improve cooperation

2. secure cooperation

3. Intelligize cooperation

In short, cryptocommerce supports intelligent voluntary cooperation.

To unpack these benefit let’s take each at at time:

1. Improve cooperation

As civilization, we have come a long way; starting with simple individual exchanges, we invented money as a medium of exchange, added composable property rights, and created complex contracts, culminating in the sophisticated institutional arrangements through which humans cooperate today.

Much of civilization’s success is based on these technologies of cooperation; together, we were able to drive down violence and poverty, and increase most factors we care about, from health, to education.For instance, the graph below, taken from Our World in Data, shows the global decline in extreme poverty from 1820 to 2015; after 1980 the rate of decline increases dramatically and continues.

Many imperfections remain; starting with obvious collective action problems like pollution, institutional pathologies like corruption, not to mention the many search costs, bargaining costs, and enforcement costs that damper our civilizational ascend. We are far from cooperating with the world in all of our preferred ways. 

Then crypto happened. Cryptographically embodied transactions allow us to reinvent existing institutions in cyberspace at lower cost, with less friction, and less corruption. They also allow us to invent and experiment with entirely novel arrangements. 

Crypto-enabled commerce, i.e. cryptocommerce is broader than simple crypto currencies alone. It includes novel financial arrangements (DeFi), innovative approaches to improve incentives in science (DeSci), and decentralized ways of coming together as societies (DeSoc). Prediction markets improve our information ecology, dominant assurance contracts can help solve collective action problems, NFTs engineer property rights, network States compete with nation states, social networks get redecentralized, and entire industries get DAO-ified, 

Gradually, crypto is waking up to its tremendous potential to speed up civilizational progress by opening up the menu of choice options for cooperation. Most experiments will fail but we only need a few successful ones to revolutionize entire industries. Whenever you have a quantitative shift that large, the change can better be described as a shift in quality. 

2. Secure cooperation

So far, so rosy. But crypto could, and must, do so much more. If we want to have any future at all, there are a variety of risks civilization has to learn to adapt to. Nuclear risks, (engineered) pandemics, automated weapons, and computer vulnerabilities are only a few of the risks that could shake the very foundations our society is built on. Other, more subtle risks include permanent lock-in into totalitarian dynamics, enabled by surveillance and automated enforcement. What role could the emerging web3 ecosystem possibly play here?  Cryptocommerce technologies, such as the blockchain, are ultimately based on cryptography. These foundations aren’t just useful to improve cooperation, but they can serve as building blocks to secure and protect civilization. Promising crypto and security technologies include SeL4, open robotics, zero-knowledge proofs, and transparent sousveillance. There are many more on the horizon.

The crucial feature of these technologies is that they allow security from external attackers without being vulnerable to internal abuse. While legacy systems need you to trust that the “good guys” remain good, with decentralized approaches to encryption and security, anyone can check that the alleged protection fabric is, in fact, operating according to its stated specifications. If we gradually replace our existing insecure foundations with secure technological infrastructure, we may be able to perform a genetic takeover, i.e. growing a novel secure system inside the insecure host, until it can outcompete it. In this image, borrowed from biology, a phenotype, highlighted in green evolves through a new genotypic representation, G2, gradually emerging within an older one, G1. 

3. Intelligize cooperation

Let’s imagine we have improved cooperation across civilization and secured it against threats. At this point, we will be in a position to leverage crypto to take one final step. This involves extending our networks of cooperation to welcome artificial intelligences.

From what is becoming increasingly obvious from compounding AI breakthroughs, advanced artificially intelligent systems are coming. As it rises, there is no reason to believe the level of artificial intelligence will halt at human intelligence. Historic nightmares with powerful centralized agents suggest that it’s unlikely that one powerful artificial intelligence would reliably uphold human interests. How do humans survive such a world? 

By revisiting human cooperative institutions that have been stable for hundreds of years, we can learn a lot. One protective pattern that repeats itself across the US constitution, international treaties and market institutions is that multiple actors hold each other in check. The US legislature restrains the judiciary, smaller nations band together into collective security treaties to compensate for power of larger nations, and smaller companies collaborate to defend their niche against monopoly players. All of these systems fend against threats arising from powerful actors through a system of checks and balances across multiple players.

Looking ahead, any structure that is supposed to constrain future artificial intelligences would benefit from continuing this dynamic. Human and artificial entities have many differences. But they also have a few similarities we can leverage when designing such systems. Both human and AI entities rely on cooperative architectures, from individual computational objects cooperating for larger problem-solving through APIS, or humans cooperating for problem-solving through institutions. To the extent that they allow the creation of software native institutions, cryptocommerce technologies can build architectures that constrain and bridge between human and artificial cooperative agents. 

Private ML, enabled by federated learning and differential privacy could help decentralize power away from powerful legacy centralized data brokers by making it possible for individuals to cooperate without losing data sovereignty. On the flipside, blockchain-enabled transparency and principal agent approaches could make personal AI assistants accountable to humans. 

We haven’t even approached early days of exploring the required technology stack yet. But once we do, we have a lot to look forward to. In some sense our civilization is already a superintelligence that, composed of both human and artificial entities, gets better at problem solving through cooperation.

All we need to do is amplify this dynamic – without causing threats that can destroy the very foundations of civilization.  That’s a tall order. But that’s what it could mean for the existing crypto ecosystem to mature, and grow into its full potential. Cryptocommerce could unlock intelligent voluntary cooperation.

If we’re successful, what’s possible in future rounds of play? 

Throughout thousands of years of civilizational evolution, we have, gradually, become better at cooperating for mutual benefit without fighting each other. Potential wins from AI, automation, and other technologies that stand to be unlocked by cooperating will make adversarial moves even more risky. With cryptocommerce technology we can improve, secure, and intelligize cooperation, to unlock futures unimaginable to current players. 

We take a stab at designing such a strategy in depth in Gaming the Future; a free substack book and book club. It comes with gitcoin bounties and guest presentations form technologists, such as Balaji Srinivasan, 1729, Arthur Breitman, Tezos, Glen Weyl, RadicalXChange, Tyler Golato, VitaDAO, Audrey Tang, Taiwan’s Digital Minister, and many others, whose work is featured throughout the post. 

About the author:

Allison Duettmann is the president of Foresight Institute, a 38-year-strong institute tosupport the beneficial development of high-impact technology to make great futures more likely. She leads the Intelligent Cooperation, Molecular Machines, Health Extension, Neurotech and Space programs, shares Foresight’s work with the public, e.g. at the Wall Street Journal, SXSW, O’Reilly AI, WEF, The Partnership on AI, Effective Altruism Global, TEDx. She co-edited the book Superintelligence: Coordination & Strategy, and co-authored Gaming the Future: Intelligent Voluntary Cooperation. She holds an MS in Philosophy & Public Policy from the London School of Economics, focusing on AI Safety, and a BA in Philosophy, Politics, Economics from York University.

The post Gaming the future: The long-term potential of cryptotechnologies appeared first on Fintech News.

Advancements in digital technologies and the number of internet users have increased the adoption of online payment gateway systems for instant wire transfers to bank accounts around the world. Improving living standards and growing levels of consumerism across the developing economies have also increased the demand for different online payment gateways, further boosting the global instant payments markets.

The use of instant virtual Visa card by users have also experienced significant growth over the past couple of years.

Several companies have adopted instant merchant services for achieving higher sales of their products by providing a better buying experience for customers. The development of the banking sector for providing online services has also made the integration of offshore merchant account instant approval methods easier than before.

“Innovations in the field of cashless transaction solutions by the banking sector of all leading economies have created a conducive environment the rapid adoption of instant payment services in the local markets. Growing popularity of net and mobile banking facilities has also strengthened the instant payment gateway platforms in the global market.”

The prevailing gap in digital literacy, particularly in low-income countries, and hesitancy in providing bank details over online platforms are anticipated to limit the growth of instant electronic funds transfer services provided by many market players.

Key Takeaways

• The net worth of the global instant payments market stands at US$ 24 Bn in 2022. At the present growth rate, it is expected to witness a growth of US$ 102.3 Bn in terms of the absolute dollar through the forecast years of 2022 to 2032.
• Instant payment systems around the world that charge some amount for the services is the highest-grossing segment for the global instant payments market than the free of cost type. This segment is predicted to grow at a rate of 17.9% through the forecast years by virtue of its quality services.
• Over the years, the online mode of fund transfer has been adopted by many points of money transactions. People to people or P2P money transfers are the most popular segment of the global instant payments market that is anticipated to witness the highest growth rate than other applications at a CAGR of 17.4% during the forecast time period.
• North America dominates the global market in providing instant payment services for the merchants operating in the regional markets. Instant approval merchant account in the USA is attributed to acquiring almost 35% of the global instant payments market and is anticipated to be worth nearly US$ 44.7 Bn in 2032 by growing with the highest CAGR of 17.8%.
• The geographical region of Asia Pacific follows North America in terms of total contribution to the market share through the higher number of PoS instant payment installations in the regional markets. China, Japan, and South Korea are the top-performing countries together, accounting for up to 16% of the global instant payments market.

Competitive Landscape

The major players operating in the global instant payments market include Vocalink, SWIFT, Danske Bank, Paytm, OCBC, Barclays, Apple, Bayer, Ripple, and Paypal.

The major strategy adopted by the prominent market players of the global instant payment market is collaborating with several regional banks and financial institutions to make their instant payment platforms more trustworthy among users. Many market players have also introduced prepaid cards with instant bank transfers that are anticipated to provide them an edge over their competitors.

• Apple Company partnered with Goldman Sachs in 2019 to launch a credit card under its banner. This card facilitates the instant online transfer of money for its customers and is expected to increase the company’s portfolio in the global market.

These insights are based on a report on Instant Payments Market by Future Market Insights

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The artificial intelligence (AI) that powers legal bill review is rapidly changing how corporate legal departments (CLDs) leverage technology to reach robust compliance and cost-savings expectations. To help them achieve their business goals, Wolters Kluwer ELM Solutions has outlined how CLDs can identify and differentiate recent AI advancements in its latest electronic book (eBook), “Not all AI is the Same – Understanding What Drives AI Leadership in Legal Bill Review.”

The eBook explores why better legal bill review with AI increases productivity, leads to more efficient workflows and positions businesses to drive better decisions overall. Additionally, ELM Solutions experts provide valuable insight into why AI still needs humans, how it helps companies navigate legal invoice challenges, and outlines key compliance program steps CLDs should make to provide maximum savings.

“CLDs want solutions that help them save capital, operate more efficiently and deliver better business results. Incorporating AI and big data are two major initiatives these companies have used – with varying levels of success – to help them secure better outcomes, cost savings and compliance improvement,” said Barry Ader, Vice President, Marketing and Product Management, ELM Solutions. “CLDs and their businesses need to be able to leverage innovative technology and expert support to help them reach their goals.”

Companies also need to understand the symbiotic relationship between good data and high-performance AI as they consider the latest legal bill solutions. Ultimately, success is contingent on reliable data and having confidence in its accuracy, completeness and consistency. Businesses must have clean data that will allow them to best position their business for the future.

“Most companies are sitting on large amounts of data, but a sizeable portion of it is erroneous or incomplete. Overall, there is not enough information to provide meaningful actions,” said Ader. “Our AI-powered solutions, like the award-winning LegalVIEW® BillAnalyzer, address these issues by extracting and leveraging the most important data from our LegalVIEW® database, which includes more than $140 billion in legal spend. Our products, backed by the information that powers them, are simply unmatched.”

With its patented AI technology, LegalVIEW® BillAnalyzer helps clients see up to a 20 percent increase in billing guideline compliance. Last year, the U.S. Patent and Trademark Office (USPTO) granted ELM Solutions patent #: 10,733,675 for the groundbreaking artificial intelligence technology behind the award-winning solution.

AI leaders working at ELM Solutions include more than 100 data scientists, 400 compliance professionals and 50 compliance experts. The company’s expert legal bill review team averages more than 13 years of paralegal and attorney experience and 200 hours of specialized training.

ELM Solutions, part of Wolters Kluwer’s Governance, Risk & Compliance division, is the market-leading global provider of enterprise legal spend and matter management, contract lifecycle management and legal analytics solutions. The company provides a comprehensive suite of tools that address the growing needs of corporate legal operations departments to increase operational efficiency and reduce costs. Corporate legal and insurance claims departments trust its innovative technology and end-to-end customer experience to drive world-class business outcomes.

Wolters Kluwer ELM Solutions was named a leader in both the IDC MarketScape: Worldwide Enterprise Legal Spend Management 2020 Vendor Assessment and IDC MarketScape: Worldwide Enterprise Matter Management 2020 Vendor Assessment. The company’s award-winning products include Passport®, the highest rated ELM solution in the latest Hyperion MarketView Legal Market Intelligence Report and TyMetrix® 360°, the industry’s leading SaaS-based e-billing and matter management solution. CLM Matrix, meanwhile, was named a “strong performer” in The Forrester Wave: Contract Lifecycle Management For All Contracts, Q1 2021 report. ELM Solutions’ LegalVIEW® portfolio of legal analytics solutions is based upon the industry’s largest and most comprehensive legal spend database, with more than $140 billion in invoices.

About Wolters Kluwer Governance, Risk & Compliance

Governance, Risk & Compliance is a division of Wolters Kluwer, which provides legal and banking professionals with solutions to help ensure compliance with ever-changing regulatory and legal obligations, manage risk, increase efficiency, and produce better business outcomes. GRC offers a portfolio of technology-enabled expert services and solutions focused on legal entity compliance, legal operations management, banking product compliance, and banking regulatory compliance.

Wolters Kluwer (AEX: WKL) is a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. Wolters Kluwer reported 2020 annual revenues of €4.6 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,200 people worldwide.

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