Fintechs Outpace Banks on AI by Embracing Experimentation
The narrative around artificial intelligence in financial services is often seen as a competition between 'innovators' and 'incumbents'.
However, the reality is more complex, and the difference in tech risk appetite between fintechs and established banks is significant.
The writer is the co-founder and CEO of Pecan AI, a predictive AI company, and holds two PhDs from Tel Aviv University.
Risk Culture
Legacy institutions are held back by a slow risk culture, leaving them trailing behind fintechs in the adoption of AI.
- UK chancellor is working to fill a £30bn gap in the country's finances.
- Banks have internal work to do to improve their risk culture.
- FCA, PRA, and Treasury accept the need to support fast-growing fintechs.
Author's summary: Fintechs outpace banks in AI adoption due to experimentation.