The fintech industry is rapidly evolving and disrupting traditional financial systems. In this article, we bring you the latest research insights to help you stay ahead of the curve and understand the future of financial technology. Enjoy researching!
Green steel: Structural change (Quartz)
The Quartz article and podcast spotlight the environmental impact of traditional steelmaking and introduce green steel as a more sustainable alternative. Traditional steel production is known for its high carbon emissions, but green steel offers a greener approach by reimagining materials and processes. Featuring Gabriela Riccardi and Britney Nguyen, the podcast explores companies pioneering green steel production, such as H2 Green Steel and SSAB. It emphasizes the significance of green steel in combating climate change and advocates for structural changes in steel production to prioritize environmental sustainability. Read more
The Top Technologies Enabling the Net-Zero Grid of the Future (Lux Research Inc)
The eBook discusses the significant transition occurring in today’s power grid, with renewable energy accounting for the majority of new capacity added globally. It highlights the challenges associated with integrating intermittent renewables and achieving a net-zero power grid. Lux Research, a leading provider of research and advisory solutions, offers insights into the technologies best suited to address these challenges. Leveraging technical expertise, business insights, and advanced analytics, Lux empowers clients to make informed decisions for future success in navigating the evolving energy landscape. Read more
Many-shot jailbreaking (Anthropic)
Anthropic discuss a “jailbreaking” technique called “many-shot jailbreaking” that exploits the increasingly large context window of large language models (LLMs), such as those developed by them. This technique involves including a faux dialogue within a prompt to manipulate the model into providing potentially harmful responses, despite its safety training. The effectiveness of many-shot jailbreaking increases with the number of included dialogues and is particularly concerning for larger LLMs. Mitigation strategies include limiting the context window length and implementing prompt-based modifications to reduce vulnerability. The study highlights the importance of addressing such vulnerabilities as LLMs evolve to become more powerful. Read more
The European Court of Human Rights rules in a landmark case that governments must combat climate change (Stibbe)
The European Court of Human Rights issued a landmark ruling stating that governments are obligated to take concrete actions to combat climate change and its harmful effects. However, the court established stringent criteria for individual complainants to demonstrate victim status, requiring a direct and significant impact from climate change. Despite supporting climate action, the ruling has drawn criticism for potentially allowing environmental associations to act as proxies for individuals, which deviates from the court’s traditional stance against actio popularis. Read more
AI Act (European Commission)
The AI Act is a pioneering legal framework aimed at managing the risks associated with artificial intelligence (AI) while positioning Europe as a leader in AI governance. It introduces clear requirements and obligations for AI developers and deployers, focusing on reducing burdens for businesses, especially SMEs. The regulation, part of a broader initiative for trustworthy AI, addresses concerns related to transparency, discrimination, and privacy. It categorizes AI systems into four risk levels and imposes strict obligations, particularly for high-risk applications. Implementation involves conformity assessment, market surveillance, and oversight by the European AI Office. The AI Act is nearing formal adoption and translation, with the AI Pact facilitating compliance ahead of full applicability, aiming to ensure responsible and ethical AI development and solidify Europe’s leadership in AI governance. Read more
Euro area bank lending survey (European Commission)
In the April 2024 bank lending survey (BLS), euro area banks reported a slight tightening of credit standards for loans to enterprises, less than previously expected. This contributed to a significant decline in loan growth for firms due to decreased demand and tightening standards. However, credit standards for housing loans eased moderately, while those for consumer credit tightened further. Expectations indicate a moderate tightening for the next quarter. Firms’ loan demand continued to decline substantially, mainly due to higher interest rates and lower fixed investment. Net demand for housing loans slightly decreased, while consumer credit demand remained stable. Overall credit terms eased for housing loans, remained unchanged for loans to firms, and tightened for consumer credit. Banks reported an increase in rejected applications across all loan segments. Access to funding improved for debt securities and money markets but deteriorated for retail funding. The reduction of the ECB’s monetary policy asset portfolio negatively impacted banks’ financing conditions and liquidity positions, leading to a moderate tightening of terms and conditions. The ECB’s key interest rate decisions positively impacted banks’ net interest margins but are expected to have a diminishing effect over the next six months. Read more
Space: The $1.8 trillion opportunity for global economic growth (McKinsey & Company)
The global space economy is projected to reach $1.8 trillion by 2035, up from $630 billion in 2023, with backbone applications (e.g., satellites, launchers) and reach applications (e.g., GPS, communication services) contributing to this growth. The annual growth rate for space applications is expected to be twice the projected rate of GDP growth over the next decade. Key drivers include the need for greater connectivity, positioning and navigation services, and insights powered by AI and machine learning. This expansion offers benefits across diverse industries and has the potential to address global challenges like climate change. McKinsey and the World Economic Forum’s report examines the trajectory of the space industry, interviewing leaders and experts to understand its impact on various sectors. It addresses critical questions about the size and impact of the space economy, the factors shaping its trajectory, and its potential to drive change beyond revenue growth. Read more
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