I was thinking more about this third revolution of financial technologies. The first was very much focused upon automation administration using mainframe computing; the second moved from pure cost reduction to the changing dynamics of how to leverage productivity and cost using the network effects of connectivity, and driven by cloud and mobile; the third is the dramatic impact of Generative AI and becoming intelligent through the analytics of every bit and byte of data, whether internal or external, and using this improve every aspect of the business by reducing risk and fraud whilst giving massively improved service to all, whether internal or external.
The third is becoming the most critical as it is focusing upon delivering data analytics for dynamic change whether that be real-time pricing to investment trades with not just paired or algorithmic trading, but 4D visualisations of everyone linked trade in the world and more. Equally, we think of this today as Agentic AI – bot-to-bot links. This is a critical area of development, as bank bots will now have to defending customer bots far more accurately with bulletproof protection from the criminal bots and fake bots.
Meantime building a bot, whether you’re a criminal, customer or banks, is becoming easier and easier and faster and faster every day. I was listening to Chris Colomubus – director of so many great films – the other day, he made a comment that things are moving faster in two weeks, in terms of what networked creators can do, than the film industry used to achieve in two years or more.
Think about it. This is the guy who made everything from Home Alone to Mrs Doubtfire to the Harry Potter movies. Yet, the Harry Potter films are being remade today, and with far better quality for the special effects, I’m sure.
Equally, it is not just bots dealing with bots in the networked world of devices but robots dealing with humans in our real world of physical connections. Yes, Robocop really is here!
From AI in all of our connected dealings through apps and devices to physical AI that should enhance, rather than threaten life, we are seeing an awful lot of science fiction turned into reality.
This is what we mean by generations of technological change. It is why in my latest speeches I make the point that if you are still Doing Digital you are dead as you have done that years ago. Now, you need to Do AI and, for many, this will be another hugely disruptive change. After all, if you have competitors who truly digital and you are still on that journey, then they are going to be way ahead of you when they can deliver innovations in all areas from fraud, risk, compliance, customer relationships – effectively across the board – in a matter of days or hours even.
This is where we are at today, and quantum will be the next leap forward. No one is saying when that will arrive, but it’s a matter of years, and there was a stat I ran across the other day which blew me away. A Chinese quantum computer, Jiuzhang, solved a complex problem in approximately four minutes that would take the world's fastest classical supercomputer about 2.6 billion years to complete.
Imagine what we will be doing when that power of processing hits the streets.
Each revolution in technological processing changes the fundamentals of what preceded before. Mainframe computers helped with the efficiencies of admin; digital transformation has allowed far more connectivity and removed the need for the physical foundations of branches and headquarters; becoming intelligent will take that connectivity and turbo charge it with intelligence through data analytics for every connection, every nanosecond of every day.
It's a wonderful world we live in, isn’t it?
Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...