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!
Argentina Revealed as the Most Crypto-Friendly Country in CryptoCasinos Research (The Fintech Times)
Recent research by CryptoCasinos reveals that Latin American countries, particularly Argentina and Colombia, rank among the top three globally for crypto adoption. The study assessed the percentage of populations holding cryptocurrencies, the cost and profitability of mining Bitcoin, and the search volume for crypto-related keywords. Argentina leads with 9.7% of its population owning crypto, benefiting from low mining costs and high profits, alongside significant traffic to Binance. The United States, despite high mining costs and a negative profit margin, shows substantial crypto ownership at 15.6% and high search volumes, particularly for Coinbase and Kraken. Colombia, with 5% of its population holding crypto, experiences moderate mining costs and notable traffic to major exchanges, driven partly by its depreciating currency. Ukraine and the United Arab Emirates also rank high, with Ukraine’s low mining costs and the UAE’s leading 30.4% crypto ownership. Vietnam and Turkey demonstrate strong crypto adoption, reflecting high ownership rates and exchange traffic, while Canada and Singapore feature significant search volumes and ownership rates, underscoring the growing global interest and investment in cryptocurrencies. Read more
Moving past gen AI’s honeymoon phase: Seven hard truths for CIOs to get from pilot to scale (McKinsey)
As the honeymoon phase of generative AI (Gen AI) concludes, organizations face challenges in scaling Gen AI capabilities beyond pilots, with only 11% having done so successfully. This phase provides CIOs the opportunity to transform Gen AI’s potential into business value, but it demands significant groundwork. Companies must streamline their efforts, focusing on impactful business problems rather than numerous pilot projects. Integrating Gen AI components effectively is critical, as is managing costs, particularly in change management and operational expenses. Simplifying the tech stack by reducing tool proliferation and focusing on reusable assets can aid scalability. Building cross-functional teams that integrate business and risk management expertise is essential. Additionally, investing in quality data, even if not perfect, is crucial for high-performing Gen AI solutions. Companies must also ensure that reusable code and assets are strategically developed to accelerate deployment and maximize the value of Gen AI initiatives. Read more
Banks explore climate risk resilience in Federal Reserve pilot study (The Paypers)
The Federal Reserve Board’s summary of an exploratory pilot Climate Scenario Analysis (CSA) exercise with six major US banks—Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley, and Wells Fargo—revealed several key insights into assessing climate-related financial risks. Banks used various approaches to evaluate the resilience of their business models against different physical and transition risk scenarios, highlighting significant data and modeling challenges. Most relied on existing credit risk models, assuming continuity in historical relationships, and faced issues with data availability, often turning to external vendors to fill gaps. The exercise underscored the importance of understanding indirect impacts and chronic risks, as well as the role of insurance in mitigating climate risks. Design choices, such as scenario severity and balance sheet assumptions, significantly influenced the insights, and the high uncertainty in measuring climate risks made routine incorporation into risk management challenging. Estimates of climate-adjusted credit risk parameters showed notable variations across sectors, regions, and counterparties, emphasizing the need for improved data, refined models, and comprehensive risk management frameworks. Read more
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