845. News: Jamie Dimon talks AI in his annual shareholder letter as fintech funding hits a seven-year low
Apr 15, 2024
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Veronica Glab and Chris Skinner discuss fintech funding hitting a 7-year low and Nubank partnering with Wise. They also delve into the transformative impact of AI on the economy, the US Green Bank lending program, and gender pay gap issues in UK tech companies.
Fintech funding hits a seven-year low, signaling changing investment patterns and regulatory influences.
Partnership between Nubank and WISE indicates a shift towards multi-currency accounts and strategic collaborations in the financial industry.
Jamie Dimon predicts AI's transformative potential, likening it to historical innovations like electricity, aiming to revolutionize banking services.
Heightened consumer hesitancy towards AI in fraud detection highlights the necessity for due diligence and executive readiness in adopting AI technology.
Deep dives
FinTech Funding Trends
Investment in FinTech declined by 16% in the first quarter of the year, a seven-year low according to CB Insights. Despite this decline, there was a 15% increase in equity deal making. The largest deal was Monzo's $430 million. The drop in funding could be attributed to changes in investment patterns and regulatory environments.
Newbank-Wise Partnership
Newbank and WISE have partnered to offer global accounts and international debit cards to premium customers. WISE, with over one million cards issued in Brazil, joins forces with Newbank, serving 90 million customers in South America. This collaboration signals a move towards multi-currency accounts and reflects the growing trend of strategic partnerships in the financial sector.
AI's Economic Impact
Jamie Dimon's AI prediction compares its potential impact to historical inventions like electricity and the internet. JP Morgan's focus on AI includes over 2000 experts. AI's integration spans areas like fraud detection, risk assessment, and customer service, aiming to transform banking operations and customer experiences.
The Future of AI in Financial Services
Despite increased investment in generative AI startups, there is still significant hesitancy among consumers towards using AI for countering fraudulent activities. The podcast highlights the importance of due diligence and executive maturity in navigating the evolving landscape of AI technology and financial services.
Addressing Gender Pay Gaps in UK Tech Companies
Recent research reveals wider gender pay gaps in top UK tech companies compared to the national average. The discussion emphasizes the need for concrete actions to drive diversity and equity in leadership roles within the industry, aiming to foster innovation and business success.
Ethiopian Bank's Unusual Response to Glitch in Customer Balances
Following a technical glitch that resulted in increased account balances for customers, the Commercial Bank of Ethiopia publicly shames individuals who did not return the excess funds. This drastic approach raises ethical concerns and has the potential to impact the bank's credibility, showcasing challenges in handling financial mishaps.
Diversity and Inclusion in Finance and Tech Industries
The conversation delves into the importance of diversity and inclusion in finance and tech sectors, highlighting the disparities in gender representation and pay gaps. The podcast advocates for proactive measures to address these disparities, emphasizing the role of leadership diversity in driving innovation and market growth.
Our expert hosts, Ross Gallagher and Jamie Campbell, are joined by some great guests to talk about the most notable fintech, financial services and banking news from the past week, including JPMorgan Chase boss Jamie Dimon comparing AI with the invention of the steam engine, AND the Commercial Bank of Ethiopia go to quite dramatic lengths to name and shame their naughty customers.
This week's guests include:
Veronica Glab, Head of Partnerships, Investment Lead at Innovate Finance
Chris Skinner, best-selling author and CEO of The Finanser
We cover the following stories from the fintech and financial services space:
Fintech Insider by 11:FS is a bi-weekly podcast dedicated to all things finance, banking, technology, and financial services.
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