AI In Banking: Proven Best Practices From Industry Experts
One-quarter of the world's population now uses mobile money.
Thanks for reading the “Cashless” newsletter, an insider’s view on Asia’s fintech, CBDC, and AI for anyone striving to understand “the Asia Century.” I’m Rich Turrin, and these are my hard-hitting insights designed to educate and inform. Subscribe to get these emerging trends directly in your inbox every Sunday. Every week, I scan thousands of articles to find only the best and most valuable for you. Subscribe to get my expertly curated news straight to your inbox each week. Free is good but paid is better.
Topics:
AI In Banking: Proven Best Practices From Industry Experts
Breakthrough: China's AI Models at 'Near Parity' With US
AI and the Digital Divide: Sharing Prosperity or Deepening Inequality?
Mobile Money: 2.1 Bn Global Users, And 14% YoY Growth!
Real-Time Payments Are Transforming Latin America
Bonus Read: McKinsey Makes AI Agents Easy for Everyone
Welcome back!
It’s time for your moment of quiet contemplation, as expressed in the Vermeer painting above. This week, we’ll examine how AI and real-time payments (RTPs) are changing our world. RTPs are improving it through financial inclusion, while AI’s role is worthy of contemplation because it might deepen inequality.
Our first article is a fabulous “how-to” report on AI in banks from the authors at Euromoney. This is a great read because the authors are journalists, not consultants or big tech, so their interviews with leading banking AI practitioners are eye-opening.
One of the big takeaways is that banks should be “agnostic” about AI, a message that big tech most certainly does not appreciate. Banks are downplaying AI technology providers because the technology changes so quickly that whatever benefits one has over another may only be temporary.
Next, we look at Stanford’s annual AI Index Report and focus on China’s “near parity” on LLM models. This is certainly not the answer Washington, D.C., wanted to hear, given that it was told that the US was “years” ahead last year.
Note that this “gold standard” AI report is a massive 450 pages long and covers every use of AI, from robots to medicine; there is something for everyone, so take a look.
The UN examines AI and asks whether it will help “share prosperity” or “deepen inequality.” This is a very real question for developing nations that AI is attacking on two fronts.
The first front is that AI reduces labor, a product developing nations sell cheaply—think the Philippines and call centers. Second, developing nations are left out of the AI revolution, which may push them further behind.
Switching topics to RTPs, we’ve got two fabulous stories showing how they bring financial inclusion across the globe. First, we look at “mobile money” to see how almost 1/4 of the world’s population is now using it; then, we look at Latin America, where RTPs are changing how the region pays.
These two feel-good stories demonstrate how RTPs promote inclusion wherever they go, whether in Latin America, Africa, or Southeast Asia, making the world a better place. Governments should push for RTPs, as the first report on mobile money shows they significantly increase GDP. Ironically, RTP progress is very slow in the US and EU.
Finally, our “Bonus Read” is an easy-to-read report by McKinsey on AI Agents. I call it a “Public Service Announcement” because AI Agents will impact us all, and this report is a painless way to better understand them. Many of my readers may know about AI Agents, but what about your family and friends? Don’t miss this one.
Thanks once again for reading. I appreciate each and every one of you opening your inbox for me!
Rich
PS
Thanks for sharing with your friends! It’s a great way to say thanks.
AI In Banking: Proven Best Practices From Industry Experts
Euromoney interviewed dozens of AI experts and created this insightful and fun-to-read “best practices playbook” for AI in banking. It should be on everyone’s reading list!
This report is full of “pearls of wisdom” from industry practitioners at the major banks, conveniently dispersed throughout the report.
Read why the report’s primary recommendation will not make big tech happy…….
Breakthrough: China's AI Models at 'Near Parity' With US
Stanford University’s 2025 AI Index Report is the world’s gold standard, and its declaration that US and Chinese AI models are at “near parity” is a real shocker.
AI experts know this gap has closed considerably, but Stanford's declaration is like a “stamp of approval” on their recent assessments of China’s breakthroughs.
AI and the Digital Divide: Sharing Prosperity or Deepening Inequality?
The UN examines AI and tries to help governments plan for shared prosperity rather than a widening digital gap that leaves developing economies even further behind.
It won’t be easy. AI is gunning for developing nations, and that’s not hyperbole.
Mobile Money: 2.1 Bn Global Users, And 14% YoY Growth!
Mobile money is huge and growing, bringing financial inclusion to 2.1 billion users, representing roughly 1/4 of the world’s population. If that doesn’t impress you, nothing will.
Mobile money operators are becoming increasingly sophisticated and greying the boundaries with mobile wallets.
See how they are bringing inclusion and changing payments for so many.
Real-Time Payments Are Transforming Latin America
Latin America is undergoing a real-time payment (RTP) revolution just like Asia’s, with digital payments exploding and fintech growth of 340% over 6 years.
Bonus Read
McKinsey Makes AI Agents Easy for Everyone
PUBLIC SERVICE ANNOUNCEMENT: This is your golden opportunity to read about AI agents and understand why they are so important.
We are in the early days of our AI revolution, and AI agents are still a work in progress, but within a year, they will begin to change how we work. They are coming for everyone!
I made that sound intentionally ominous, but AI Agents are coming for everyone because they will help us in the workplace by performing complex tasks using logic.
Who wouldn't want one?
I wanted one today, as I wasted hours searching online for air tickets! I'd gladly have used an AI agent if I had one to do that. Soon, we all will.
Kudos to McKinsey for a great read to help everyone better understand our "shared" AI future. That’s why I call this a Public Service Announcement.
👉Can't read it this weekend? Download it for future reference.
👉Do you already understand AI agents? What about your family?
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E-Book: Digital Finance in the EU
The EU and Hong Kong are looking at the future of AI and want to ensure that financial services use it responsibly. Each have produced reports on AI and financial services that address this issue.
The Bank of England looks at AI’s impact on financial stability
As we saw with the Hong Kong and the EU’s writing on AI, the most unsettling issue is whether AI will make markets unstable. Spoiler alert: Yes, it will.
Circle Stablecoin
I like Circle Coin and think it's one of the best US dollar stablecoins. I hope it can move from the crypto world to Americans' wallets. If you don’t know much about Circle, this pre-IPO report is a great place to start.
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