Chart: Fintech is in the Eye of the Beholder
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Chart: Fintech is in the Eye of the Beholder

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Chart: Fintech is in the Eye of the Beholder

Fintech is in the Eye of the Beholder

Finance professionals have very different perspectives

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

The development of new technology in the financial sector is happening at a breakneck speed.

Between the emergence of the blockchain, AI, robo-advisors, regtech, payment and loan services, and many other examples of technological progress, there are many ideas to keep track of at once.

It would appear that these changes are happening so fast, in fact, that people don’t even have a uniform idea of what fintech really is.

Varying Interpretations

According to the results of LinkedIn’s survey of financial services professionals, how fintech is perceived greatly depends on a person’s role within the financial industry.

Wealth managers, for example, are very much aware of the robo-advisor arms race happening now, and how it may impact their future business especially with millennials. As a result, it’s likely no surprise that 68% of wealth managers rank robo-advisors as an important development within the fintech sector. Meanwhile, other developments like the blockchain (21%), regtech (24%) and digital lending (16%) are perceived as less important by this group.

For investment bankers and fintech professionals, the tables are turned.

Interestingly, these two groups seem to see more eye-to-eye regarding the technologies at play in the finance sector. Both fintech professionals (63%) and investment bankers (55%) saw AI-based investing as an important development, and both saw the blockchain (44% and 35%) as a key development as well.

Blockchain, Schmlockchain

Retail bankers had a very different perspective on the blockchain. They ranked both insurtech and chatbots (which we didn’t even show in our chart) as more important than the new distributed ledger technology, putting it in last place out of the options given.

This could be an oversight, considering that cryptocurrencies alone are already worth more than $80 billion, and that doesn’t even include the many other potential applications of the blockchain.

Retail bankers had other contrarian opinions as well – they were the only subgroup where the majority chose digital lending (54%) as the most important development in the industry as a whole.

Living in Alternate Realities?

While the jury is still out on what aspect of fintech will have the biggest impact on financial services overall, there is an even deeper question at hand: will fintech make a real impact on traditional financial services at all?

It’s a question that’s very divisive, with very different answers depending on your side of the spectrum:

  • 42% of fintech professionals see fintech as being a direct threat to traditional finance
  • 13% of traditional finance professionals see fintech as being a direct threat to traditional finance

Who’s right, and who’s wrong?

Surely, at least one group is going to end up disappointed with their lack of foresight.

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Infographic: Generative AI Explained by AI

What exactly is generative AI and how does it work? This infographic, created using generative AI tools such as Midjourney and ChatGPT, explains it all.

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Generative AI Explained by AI

After years of research, it appears that artificial intelligence (AI) is reaching a sort of tipping point, capturing the imaginations of everyone from students saving time on their essay writing to leaders at the world’s largest tech companies. Excitement is building around the possibilities that AI tools unlock, but what exactly these tools are capable of and how they work is still not widely understood.

We could write about this in detail, but given how advanced tools like ChatGPT have become, it only seems right to see what generative AI has to say about itself.

Everything in the infographic above – from illustrations and icons to the text descriptions⁠—was created using generative AI tools such as Midjourney. Everything that follows in this article was generated using ChatGPT based on specific prompts.

Without further ado, generative AI as explained by generative AI.

Generative AI: An Introduction

Generative AI refers to a category of artificial intelligence (AI) algorithms that generate new outputs based on the data they have been trained on. Unlike traditional AI systems that are designed to recognize patterns and make predictions, generative AI creates new content in the form of images, text, audio, and more.

Generative AI uses a type of deep learning called generative adversarial networks (GANs) to create new content. A GAN consists of two neural networks: a generator that creates new data and a discriminator that evaluates the data. The generator and discriminator work together, with the generator improving its outputs based on the feedback it receives from the discriminator until it generates content that is indistinguishable from real data.

Generative AI has a wide range of applications, including:

  • Images: Generative AI can create new images based on existing ones, such as creating a new portrait based on a person’s face or a new landscape based on existing scenery
  • Text: Generative AI can be used to write news articles, poetry, and even scripts. It can also be used to translate text from one language to another
  • Audio: Generative AI can generate new music tracks, sound effects, and even voice acting

Disrupting Industries

People have concerns that generative AI and automation will lead to job displacement and unemployment, as machines become capable of performing tasks that were previously done by humans. They worry that the increasing use of AI will lead to a shrinking job market, particularly in industries such as manufacturing, customer service, and data entry.

Generative AI has the potential to disrupt several industries, including:

  • Advertising: Generative AI can create new advertisements based on existing ones, making it easier for companies to reach new audiences
  • Art and Design: Generative AI can help artists and designers create new works by generating new ideas and concepts
  • Entertainment: Generative AI can create new video games, movies, and TV shows, making it easier for content creators to reach new audiences

Overall, while there are valid concerns about the impact of AI on the job market, there are also many potential benefits that could positively impact workers and the economy.

In the short term, generative AI tools can have positive impacts on the job market as well. For example, AI can automate repetitive and time-consuming tasks, and help humans make faster and more informed decisions by processing and analyzing large amounts of data. AI tools can free up time for humans to focus on more creative and value-adding work.

How This Article Was Created

This article was created using a language model AI trained by OpenAI. The AI was trained on a large dataset of text and was able to generate a new article based on the prompt given. In simple terms, the AI was fed information about what to write about and then generated the article based on that information.

In conclusion, generative AI is a powerful tool that has the potential to revolutionize several industries. With its ability to create new content based on existing data, generative AI has the potential to change the way we create and consume content in the future.

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