GenAI in Banking: Game-Changing Success Stories

Fintech takes 3% of incumbents' revenue stream: smashing success or failure?

“Yellow common seahorse” Taken by Richard Turrin, near the Lembeh Straits, Indonesia. For scale, look at the grains of sand on its neck.

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:

• GenAI in Banking: Game-Changing Success Stories

• FinTech An Emerging Disruptor: Stealing 3% Of Incumbents' Revenue And Climbing

• Technology’s Triple Transformation: Combining, Converging, and Compounding At Historic Speed

• Bonus Read: Who pays when AI goes rogue: AI liability along the value chain

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🏝️ This shorter-than-normal newsletter is a holiday edition. I’m scuba diving in Indonesia and reducing my output this week and the next. Expect typos!

Premium subscribers will still get six great additional reads!

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Happy Sunday!

Today’s art is my photograph of a “yellow common seahorse” taken in Indonesia. The seahorse is an odd creature that flips traditional reproductive roles. The males carry and give birth to the babies, using a specialized brood pouch to nurture the developing embryos.

Speaking of flipping roles, AI is doing so at banks, with AI taking the lead in certain forms of data analysis, flipping roles with humans. The takeaway from our first report on AI is that banks aren’t letting AI loose on the customers just yet and ensure there is a human in the loop to check the AI’s output.

Fintech is booming and stealing 3% of incumbents revenue. While that is a long way away from the 2015 declaration that fintech would replace banks, it is a significant undertaking. What the report doesn’t answer is how fintechs are compressing bank margins in everything from payments to personal loans.

Finally, we look at tech’s triple transformation, which is causing changes at historic speed. The 3C framework provides a valuable way to understand why today’s tech changes are so rapid and transformational.

Thanks once again for reading. I appreciate each and every one of you taking the time to open your inbox for me!

Rich

PS

Thanks for sharing with your friends! It’s a great way to say thanks.

PPS. Last week, I wrote a great intro to my newsletter that didn’t get included in the email! A few of you wrote to me asking what went wrong. Last week’s edition was written in an airport, and I hit send before adding the text, which was written on a flight. For those who want to read last week’s full intro, click HERE

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GenAI in Banking: Game-Changing Success Stories

Some banks are "evolving" and successfully putting GenAI to work!

Not all banks are lagging behind with GenAI in this battle for "the survival of the fittest."

A few success stories from banking show how some banks are "evolving" with AI, while others are not, creating an "AI Gap" among banks.

Read on to see how many banks are really letting AI loose on their clients….

FinTech An Emerging Disruptor: Stealing 3% Of Incumbents' Revenue And Climbing

Fintech's outgrew incumbents 3x the pace in 2024

Fintechs have captured a mere 3% of global financial services revenue, which, believe it or not, is a smashing success.

Three percent may not seem like a lot, but given how fintechs sprang from nothing and are attacking incumbents with high walls, this is a significant feat and should be celebrated, not ridiculed.

Read why fintech won’t sink the banks but will be a perpetual thorn in their side….

Technology’s Triple Transformation: Combining, Converging, and Compounding At Historic Speed

New business models and paradigms will have economic and societal costs.

Technology isn't just changing, it is roaring forward at historic speeds, breaking paradigms and business models with societal and economic costs.

Read how the tech revolution we are living through can be nicely summarized by the 3C Framework…..

Bonus Read

Who pays when AI goes rogue: AI liability along the value chain

AI Liability Along the Value Chain

1.06MB ∙ PDF file

Download

Determining who pays when AI goes wrong will not be easy, but it is a crucial concept for all financial institutions that use it.

Download

While AI hype is the norm, few are writing about AI liability and this report shows how hard it will be to untangle responsibility to determine “who pays” when AI goes rogue.

“Though it is common to think of AI systems as a singular tool, AI systems are often developed and deployed in a value chain that involves numerous actors that participate throughout the stages of creation, fine-tuning, and implementation of these technologies, or that sell and supply key components such as pre-labeled data.

When designing a liability system for this type of multi-party scenario, there are many questions to consider: should all parties in the value chain be held equally liable when harm occurs? Or should each actor only be held liable for the extent to which they are responsible? How easy is it to establish the contribution of each party? (Spoiler alert, it may be very hard.).”

Hot Topics for Premium Subscribers only

Imagine having someone combing through thousands of articles, over 50 RSS feeds, and 25 meticulously crafted Google searches—all to handpick the absolute best reports, just for you.

Each week, I distill this ocean of information into five concise, high-value reports, sharing the most essential knowledge you need to stay ahead.

But that’s not all. I also collect additional exclusive, hard-to-find gems, which I put in the section below—all in PDF format with my brief expert commentary.

To download them, no corporate email is required, no searching, and no links to other places are required. With a paid subscription, these insights are just a click away.

Here’s what you’re missing out on this week in the Premium Subscriber-only section below:

• Harnessing Digital Transformation for Good in Asia

  Digital transformation is fundamentally reshaping economies and societies. While promoting growth, innovation, and productivity, it also presents new opportunities to reduce inequality and poverty, and enhance resilience to extreme weather events. However, if not properly managed, digital transformation can widen inequalities, undermine sustainability, and create risks related to cybersecurity, data privacy, and the spread of misinformation.”

• Circle Payments Network

  Ready for new “payment rails?” Circle is and as a stablecoin provider is doing everything it can to make using its stablecoin easy.

• The Looming Threat of Uninsured Nonbank Stablecoins

  Not everyone shares Circle’s vision of stablecoins as a means of payment. This is a harsh review of stablecoins that points out their flaws. Is it overly harsh? Perhaps, but the reality is that privately issued money will have a hard time replacing the dollar and there isn’t enough examination of its flaws.

• And that’s just three of six reports. You’re also missing the infamous Chart of the Day, which today covers “OECD Cuts Global Growth Figures Over Tariffs.”