Weekly Analysis And Opinion Highlights – 1 April 2024

Dive into the dynamic world of finance with our latest analysis highlights, exploring hot topics from the fintech funding industry.

Innovation Matters (Lux Research)

The podcast, hosted by sustainable innovation experts Anthony Schiavo, Mike Holman, and Karthik Subramanian from Lux Research, delves into the world of deep tech innovation in sectors such as energy, manufacturing, agrifood, and resources. They analyze the latest news and conduct interviews with leading experts to explore technological, economic, political, and social trends shaping the success or failure of innovations. The podcast emphasizes the importance of addressing climate, waste, and health challenges through real, impactful innovation, rather than focusing solely on consumer apps or gadgets. It’s worth noting that the opinions expressed on the podcast are those of the hosts and guests, and do not necessarily represent the views of Lux Research. Read more

‘Holy trinity’ of sustainability information: the CSRD, SFDR and Taxonomy Regulation (Stibbe)

In the Stibbe Legal Insights podcast, lawyers Loes van Dijk and Maarten Weekenborg explore the intersection of sustainability reporting and financial regulations within the European Union’s ambitious Green Deal framework. They discuss the significance of the Corporate Sustainability Reporting Directive (CSRD), the Sustainable Finance Disclosure Regulation (SFDR), and the Taxonomy Regulation in encouraging financial markets to invest in green activities and companies. The podcast emphasizes the importance of transparency in sustainability reporting and the role of these regulations in driving the transition to a sustainable society. Listeners can access this and other episodes on the ‘Stibbe Legal Insights’ podcast channel on Spotify or Apple Podcasts. Read more

How improving credit risk assessment can catalyze FIs’ growth: 3 questions with Visa’s Carl Rutstein (Tearsheet)

In an interview with Sara Khairi, Visa’s Global Head of Advisory Services, Carl Rutstein, discusses the impact of data and AI on credit risk assessment and the challenges faced by financial institutions (FIs) in adopting these technologies. Against a backdrop of increasing consumer payment defaults and regulatory pressures, FIs are transitioning away from traditional underwriting methods, embracing alternative credit data and AI to enhance decision-making and risk assessment processes. Rutstein highlights the potential for growth through improved credit risk assessment but acknowledges the hurdles FIs face in effectively leveraging technology in this area. Read more

From democracy and digitization to risk and regulation, we explore the future of government (Vision Protiviti)

The Democracy Index, released by the Economist Intelligence Unit, paints a sobering picture of the state of democracy worldwide, showing a consistent decline over the past eight years. This decline is notably pronounced in key aspects such as civil liberties and electoral processes, signaling challenges to the core tenets of democratic governance. Against this backdrop, VISION by Protiviti delves into the implications of this trend for the future of government services and innovation. Through insightful discussions with experts like Ed Olowo-Okere and Heidi Crebo-Rediker, the focus shifts towards forging new social contracts and implementing strategies to future-proof businesses in the face of geopolitical uncertainties. Topics such as cybersecurity, quantum computing, and e-government emerge as critical areas for government adaptation and innovation, highlighting the urgency of embracing technological advancements to address evolving threats and opportunities. As Norway emerges as the frontrunner in secure democracy, ongoing exploration seeks to chart a path forward for governments worldwide, navigating the complexities of an increasingly uncertain global landscape. Read more

A third of banks ban employees from using gen AI. Here’s why. (American Banker)

The survey conducted by Arizent, publisher of American Banker, reveals that while financial services leaders acknowledge the potential benefits of utilizing artificial intelligence (AI) to enhance efficiency and assist employees, 30% still prohibit the use of generative AI tools within their companies. Of this group, 15% have completely banned the use of generative AI for all employees, while 20% restrict its use to specific functions or roles. Another 26% are considering implementing a ban. The primary concern hindering the adoption of generative AI among bankers is the difficulty in assessing the risk associated with its applications, particularly due to the fact that generative AI does not provide consistent answers and may generate inaccuracies or misinformation. Concerns about the long-term risks of using generative AI include the dissemination of nonsensical or inaccurate information, potential legal or regulatory issues, job losses, and ethical concerns about AI making decisions without human oversight. Despite these apprehensions, some experts argue that leveraging AI tools can enhance critical thinking skills and require higher-level skills for interpretation and decision-making. While there is a consensus on the need for stronger regulations governing the use of AI in banking and a willingness to invest in AI talent, concerns persist about AI’s potential to replace human roles entirely, underscoring the importance of a balanced approach to AI integration alongside human expertise. Read more

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