Connect with us

Money

How Financial Services Firms Can Unleash the Potential of Generative AI

Published

on

How Financial Services Firms Can Unleash the Potential of Generative AI

Banks and insurers are equipped with hype detectors and pride themselves on distinguishing between trends and genuine innovative advancements. In the last 15 months, they’ve faced unprecedented enthusiasm surrounding generative AI, testing their discernment.

Consider this: since OpenAI introduced ChatGPT in November 2022, we’ve witnessed the launch of 623 additional foundation models designed for specific business purposes or as versatile tools for tasks like code testing. Meanwhile, the FinTech Innovation Lab New York, a program offering guidance from top financial services firms like JPMorgan Chase, BlackRock, and Prudential, among others, is nearing completion of its next round. A remarkable ninety percent of the finalists, chosen directly by financial institutions, focus on generative AI solutions.

One criterion to separate genuine innovation from mere hype is asking for tangible results. And there’s plenty of investment to back it up, from Microsoft’s $13 billion investment in OpenAI to Meta’s announcement of a $33 billion commitment to the technology. Recent reports reveal that SoftBank’s Masayoshi Son and OpenAI’s Sam Altman aim to raise substantial amounts – $100 billion and potentially up to $7 trillion respectively – to ramp up AI chip production. While this may seem extravagant, global computer chip sales last year totaled just over $500 billion.

Generative AI represents a departure from most major technological innovations seen thus far – even challenging the ubiquitous impact claimed by the internet, which has permeated virtually every aspect of business. When you add the rapid pace of advancement and diversification of generative AI, even the staunchest skeptic must acknowledge its exceptional nature.

The sentiment is widely shared among financial services professionals. Throughout 2023, nearly every financial institution focused on identifying potential applications and conducting trial runs. 2024 is anticipated to mark the transition from experimental exploration to a systematic, organization-wide pursuit of value.

However, this shift entails more than just increasing investment and changing gears. To fully harness the potential of generative AI, banks, insurers, and capital markets firms must reassess the fundamentals of their operations. Many will need to upgrade their digital infrastructure because generative AI cannot reach its full potential without a flexible IT architecture built on cloud technology and modern data frameworks.

All organizations will need to reconsider the tasks required and how they will be executed, along with the impact on skills, roles, and the organization itself. Given the rapid and extensive changes, traditionally conservative firms will need to undergo significant cultural transformations to become more adaptable, innovative, and fluid. Leaders must possess a solid grasp of AI’s potential to continue guiding their organizations’ direction and evolution effectively.

These firms must ensure their employees are onboarded for this journey, though many may feel apprehensive. In a recent study conducted late last year, we discovered that only 31% of financial services firms have comprehensive strategies in place to ensure positive outcomes and experiences for workers with generative AI.

The truth is, fully realizing the potential of generative AI entails reinventing your business by definition. However, few are adequately prepared for this transformation. While workers are eager to receive training in generative AI, not many employers in the financial services sector are effectively meeting this demand.

Nevertheless, there’s hope for those lagging behind. The widespread availability of generative AI technology facilitates easier catch-up for firms, provided they make sound strategic decisions.

While we all enjoyed experimenting with ChatGPT upon its release, setting improbable challenges and marveling at its rapid, impressive responses, implementing this technology to overhaul your operating model, customer experience, and workforce is a far more complex endeavor. It requires a systematic strategy that permeates every aspect of the value chain and a multi-year program facilitating continuous reinvention.

A crucial aspect of this strategy involves choosing from a growing selection of increasingly sophisticated and specialized AI models. We emphasize the necessity of establishing a ‘model garden,’ where various models can be nurtured, tested, and leveraged for different purposes. Additionally, understanding the pivotal role of the cloud is essential. This encompasses providing the required computational power and ensuring secure access to data for preferred models.

Moreover, significant preparatory work will be necessary for most companies. Without organized and secure data, full utilization is unattainable. A culture that fosters curiosity and experimentation is crucial to keep pace with industry leaders. Additionally, having skilled and adaptable personnel is essential for widespread adoption of the technology. Neglecting proper guardrails and responsible AI practices can introduce bias and erode customer trust.

The enthusiasm surrounding generative AI is tangible. Rarely have we encountered a future where many present aspirations are likely to materialize. However, the true value of this innovation will remain unrealized unless financial services firms first establish the foundational elements.

More: Prediction about Bitcoin Prices: Can Bitcoin Reach $1,000,000 by 2025?

2 Comments

2 Comments

  1. Pingback: 5 Tips To Creating An Successful Savings Plan - Videfines - Global Exploration

  2. Pingback: Why People Are Leaving Ireland World's Richest Country - Videfines - Global Exploration

Leave a Reply

Your email address will not be published. Required fields are marked *

Money

5 Tips To Creating An Successful Savings Plan

Published

on

5 Tips To Creating An Successful Savings Plan

There are numerous rationales for preserving your funds. You might be stashing away for a brief objective like going on a trip or hosting an event. Alternatively, you could be aiming for something grander, like purchasing a new residence or getting ready for retirement. Regardless of the size of your ambition, the crucial initial step is devising a strategy to achieve your savings objective. Yet, as universally acknowledged, setting your objectives and devising a strategy is the uncomplicated phase – adhering to that savings strategy presents the real challenge.

Michael Liersch, who serves as the Head of Advice and Planning at Wells Fargo, offers guidance on crafting a savings strategy that will endure.

Start small

Establish modest, attainable, and well-defined objectives for yourself. When goals are overly ambitious, monitoring progress and maintaining commitment become more challenging. For instance, commence with a modest target like allocating $10 weekly to deposit into your savings account. As you consistently achieve these goals, contemplate augmenting the amount gradually. Over time, this weekly $10 allocation will amass to $40 monthly. Witnessing your savings increase will motivate you to persist in your efforts.

Get out of your head

Liersch asserts that when financial goals remain solely in one’s thoughts, they can appear daunting and overwhelming, making them difficult to grasp. He explains that behavioral science indicates that feeling overwhelmed can lead individuals to inertia or inaction. To overcome this, people should externalize their goals by recording them, either on paper or using a preferred goal-tracking tool, in manageable segments. One option he recommends for tracking goals is LifeSync, the latest addition to Wells Fargo’s mobile app. This feature allows users to name their goals, upload motivating images, link their finances to their goals, and monitor progress. Whether through pen and paper, an app, or a personalized spreadsheet, maintaining a record to track progress can aid in achieving goals and staying accountable.

Read More: How Financial Services Firms Can Unleash the Potential of Generative AI

Don’t go it alone

Another effective method for staying committed to your goals is to establish savings objectives alongside someone else. According to a recent Wells Fargo Money Study, approximately half (46%) of Americans stated that their family has played a role in enhancing their financial habits. Therefore, enlisting the support of a trusted family member, friend, or financial advisor to hold you accountable and celebrate your achievements can significantly bolster your progress.

Reward yourself

When determining saving goals, Liersch notes that people tend to focus on what they shouldn’t or can no longer do. The study revealed that 43% of respondents harbored a “scarcity” mindset regarding money, and 60% admitted to fixating excessively on their financial status. Liersch explains that dwelling on feelings of restriction and deprivation can lead individuals to abandon their savings goals, potentially prompting even more pronounced shifts toward negative financial behaviors, as they perceive their situation to be beyond their control. Instead, he advocates for a focus on deliberate allocation of funds, which involves directing money toward savings goals while still allowing for expenditures that bring joy. For instance, upon reaching your monthly savings target, consider allocating $5-$10 towards treating yourself to your favorite takeout burrito. Celebrating the achievement of your intentions in this way mirrors the principle of responsible indulgence, akin to avoiding extreme dieting which often leads to periods of overspending, whereas responsible self-treating fosters an appreciation for small victories in the long run.

Prioritize Your Goals

Inertia can also arise from the difficulty in choosing which goal to prioritize among retirement, home buying, and day-to-day expenses. Regarding goal prioritization, only 13% of participants in the Wells Fargo Money Study reported being extremely clear on their financial goal achievement strategies. Liersch suggests starting by clearly defining and describing each goal, along with their personal significance. This helps in determining priorities. Subsequently, one can calculate the required amount for each goal and establish a timeline for achieving them. Additionally, Liersch advises giving regular and consistent attention to lower-priority goals whenever possible. He acknowledges the importance of day-to-day expenses like rent, food, utilities, and maintenance, suggesting they naturally take precedence over other goals such as managing spending, credit, debt, and saving for emergencies or near-term purchases. Liersch recommends determining the necessary funds for essential goals first, then allocating any remaining funds, even small amounts, to less urgent goals. Consistently doing this keeps goals at the forefront of one’s mind, facilitates progress, and maintains focus and intentionality.

Saving for goals, particularly large or long-term ones, can seem daunting. However, by beginning with modest steps, remaining accountable, establishing rewards, and prioritizing, you can develop a savings plan that is feasible, practical, and enduring.

Read More: Parent Plus Loans – Decoding Double Consolidation Amidst SAVE Plan Deadline

Continue Reading

Money

Prediction about Bitcoin Prices: Can Bitcoin Reach $1,000,000 by 2025?

Published

on

Prediction about Bitcoin Prices Can Bitcoin Reach $1,000,000 by 2025

The year 2024 kicked off with significant momentum for cryptocurrencies like Bitcoin and Ethereum, sparking excitement among crypto enthusiasts. As of March 18, 2024, BTC is trading at $68,497, boasting a market capitalization of $1.35 trillion, marking a 4.67% increase in the last 24 hours. However, it saw a recent downturn, hovering around the $65,000 mark, and dropped by 5.15% in the past previous month.

BTC, the primary cryptocurrency, has weathered a turbulent period, losing about 65% of its market value over the past year. Crypto enthusiasts were surprised by unforeseen events such as the Terra Luna crash, FTX decline, macroeconomic factors, and Binance’s legal troubles. Nevertheless, the crypto market demonstrated a notable recovery towards the end of the year, with BTC showing promising growth.

Bitcoin surged to impressive heights, surpassing its previous all-time high of $69,170 on March 8, 2024, hitting $70,083. Then, on March 14, 2024, BTC once again exceeded its previous peak, reaching $73,750. This surge drove its market capitalization to $1.44 trillion, contributing to the overall crypto market capitalization of $2.77 trillion, showcasing exceptional performance.

Recovery Journey of Bitcoin

After crossing the psychological threshold of $31,000, Bitcoin began to display a bearish trend and traded below $30K levels for most of the past year. However, it has exhibited remarkable recovery in the latter months of the year. The world’s largest cryptocurrency, BTC, which was on a recovery trajectory, has surged approximately 206.68% in one year. It is presently trading at its peak level, surpassing its previous all-time high in 2021 and establishing a new benchmark at $70,083 on March 8, 2024. The current valuation stands around $69,157.

BTC, the world’s largest cryptocurrency, which was on a path to recovery, has surged approximately 148.75% in one year. As of March 18, 2024, it is trading at $68,497 with a market capitalization of $1.35 billion, contributing to the global cryptocurrency market capitalization of $2.77 trillion.

Cryptocurrency experts opined that if BTC maintained its $30,000 level, it could potentially rebound from there. Assessing the current situation, Bitcoin has surpassed its all-time high this month but has observed a downward trend this week.

While the future of Bitcoin remains uncertain, retail investors need to exercise caution with each move of Bitcoin, given its turbulent history. Additionally, India’s firm stance on cryptocurrencies persists, with the government bringing all crypto-related transactions under the purview of the Money Laundering Act. In a specific gazette notification, the Union Finance Ministry of India announced that all transactions related to digital assets or virtual currency would fall under the purview of the Prevention of Money Laundering Act (PMLA).

Initially, the new development may seem detrimental to the cryptocurrency community in India. However, in reality, the move has been applauded by the industry at large as a step towards regulating this space, where in the absence of regulators, enforcement agencies would promptly address any discrepancies.

Spot Bitcoin ETFs have played a significant role in Bitcoin’s growth. Following the SEC’s approval of the ETFs in the U.S., retail investors displayed considerable interest, leading to Bitcoin surpassing its previous all-time high.

Another reason for crypto experts’ optimism about Bitcoin is that 2024 is slated to be a year for Bitcoin’s halving event. The Bitcoin halving event occurs every four years, during which BTC rewards to miners are halved (the miner’s payout will be reduced to 3.125 BTC). Historically, halving has been viewed as a positive indicator for Bitcoin’s price, as it helps in reducing the supply. Consequently, halving events have often generated momentum for Bitcoin’s price.

History of Bitcoin Halving

The historical data presented in the table illustrates the significant impact of past Bitcoin halving events on establishing long-term bullish drivers for Bitcoin’s price. These halving events, which occur approximately every four years, are pivotal moments characterized by Bitcoin’s deflationary nature and reduction in its supply. This scarcity dynamic often serves as a catalyst for driving up the price of Bitcoin over time.

Bitcoin’s decentralized nature ensures that it cannot be arbitrarily printed by central banks or governments, resulting in a finite total supply. This scarcity, combined with increasing demand, creates a conducive environment for upward price movement.

Furthermore, the resurgence of “Bitcoin Whales,” referring to large investors holding substantial amounts of Bitcoin in their wallets, signals renewed accumulation of the cryptocurrency. Data from the on-chain aggregator Santiment reveals that these whales, typically holding between 1,000 to 10,000 BTC, have been steadily increasing their holdings. This accumulation trend among large investors may further contribute to upward pressure on Bitcoin’s price as it reflects growing confidence in the cryptocurrency’s long-term value proposition.

Can Bitcoin Reach $100,000 by 2024?

In the current year, Bitcoin is poised to undergo its fourth halving, anticipated to occur in April. This event, fundamental to Bitcoin’s monetary policy, is integral to maintaining its increasing scarcity by halving the rate of supply growth approximately every four years.

Previously, Bitcoin’s supply growth rate surpassed 10%, but it has since been reduced to around 1.75%. During the halving month, projected for April this year, this rate will diminish further to just 0.85%. The BTC halving will persist until the entire supply of 21 million coins is mined, projected to happen around the year 2140. Presently, approximately 19.6 million BTC coins are in circulation within the cryptocurrency market.

Geoff Kendrick, head of crypto research at Standard Chartered Bank, anticipates that the price of BTC will soar to $100,000 by the end of the current year, with the Bitcoin halving potentially serving as one of the drivers of this upward trend.

As of March 18, 2024, BTC is trading at $68,202 with a market capitalization of $1.34 trillion. The halving is expected to occur in April 2024, coinciding with the block height reaching 840,000.

Note: The figures are taken from CoinMarketCap. 

Can Bitcoin Reach $1,000,000 by 2025?

Bitcoin enthusiasts often indulge in making optimistic, sometimes overly ambitious, predictions for their favorite cryptocurrency. Following the recent mini-bull run, discussions surrounding Bitcoin, the world’s largest digital coin, have proliferated. Some speculate that the crypto coin could potentially reach a staggering $1 Million mark by 2025.

This notable hypothetical figure of $1 Million has been touted by several prominent figures within the crypto community. Standard Chartered, a leading British multinational bank, recently revised its BTC price prediction in a research report, suggesting a range between $100,000 to $120,000 by the end of 2024, citing increased profitability for BTC miners. Additionally, the bank forecasts BTC to reach $50,000 by the end of the current year.

Chinese-Canadian Bitcoin entrepreneur and CEO of crypto firm JAN3, Samson Mow, holds an even more bullish outlook, predicting that the cryptocurrency will soar to $1 million within the next five years. Amidst such bold projections, investor and former technology chief at Coinbase, Balaji Srinivasan, made a bet that BTC could surge to $1 Million or beyond within a mere 90 days.

Srinivasan justified his strong assertion by suggesting that as the world experiences heightened inflation, the value of the dollar will depreciate, leading people to increasingly invest in BTC. The term “hyperinflation” denotes an extreme surge in the prices of goods and services over time.

Contrary to these extravagant predictions, cryptocurrency experts caution that while BTC may eventually reach $1 Million in the future, such a milestone is unlikely to be attained as swiftly as suggested, with predictions for the year 2023 or within a 90-day timeframe deemed improbable.

Marshall Beard acknowledged the possibility of Bitcoin reaching a million dollars eventually but dismissed the notion of achieving it within 90 days as unrealistic. He suggested that while significant developments may unfold, such extreme predictions typically take a longer timeframe, possibly up to a decade, to materialize.

Conclusion

Amidst the multitude of predictions surrounding Bitcoin, one underlying truth prevails: Bitcoin has weathered numerous downturns and consistently emerged stronger each time. Its inherent resilience serves as a source of confidence for crypto enthusiasts, who recognize the value of investing in decentralized currencies. Whether Bitcoin ascends to greater heights or encounters obstacles remains uncertain, and only time will unveil its trajectory.

It’s imperative for individuals engaged in Bitcoin trading to approach it with full awareness. While the potential for substantial returns exists, there are no guarantees. Investing in Bitcoin carries inherent risks, and outcomes may not always align with anticipated returns. Therefore, prudent decision-making and a thorough understanding of the market dynamics are crucial for navigating the volatile landscape of cryptocurrency trading.

More: Price of Bitcoin reaches a two-year high of $50,000. ETFs Are Near Mainstream, According to Analyst

Continue Reading

Money

Price of Bitcoin reaches a two-year high of $50,000. ETFs Are Near Mainstream, According to Analyst

Published

on

Price of Bitcoin reaches a two-year high of $50,000. ETFs Are Near Mainstream, According to Analyst

 

Bitcoin surged to its highest value since December 2021 on Monday, surpassing the $50,000 mark for the first time in over two years. This upward movement sparked a rally in both cryptocurrencies and associated stocks. Notably, Coinbase stock and bitcoin ETFs experienced significant gains, along with the surge of bitcoin miner Marathon Digital (MARA).

On Monday afternoon, Bitcoin traded above $50,200, reaching $50,314 briefly in the morning — marking its highest level since December 2021. Although Bitcoin had spiked to $49,000 on January 11, the day of the ETF launch, it retraced to its early December 2023 level before the SEC announcement. Nevertheless, Bitcoin has seen an increase of over 18% in value so far this year.

Ethereum maintained its position near $2,650, reaching four-week highs and showing a 15% increase in value for the year 2024. Crypto exchange Coinbase (COIN) saw a 3.8% surge on Monday, pushing it back above its 50-day moving average. Marathon Digital stock also rose by 14.2%, approaching late December highs.

Bitcoin ETFs exhibited strong performance, with spot bitcoin ETFs surging more than 5.5% during trading after a 4% increase on Friday. BlackRock’s iShares Bitcoin Trust (IBIT) led in fund inflows, attracting approximately $3.75 billion by the end of February 9 since the launch of spot bitcoin ETFs on January 11. Fidelity Wise Origin Bitcoin Fund (FBTC) ranked second with $3 billion in inflows. On Friday, ARK 21Shares Bitcoin ETF (ARKB) surpassed Bitwise Bitcoin ETF (BITB) in inflows, recording $918.5 million compared to BITB’s $785.8 million.

Despite Grayscale Bitcoin Trust (GBTC) experiencing outflows of about $6.38 billion as of February 9, its decline has slowed. GBTC remains the leader in assets under management with $22.12 billion, followed by iShares Bitcoin Trust at $4.18 billion. New ETFs have seen $2.65 billion in inflows since launch, according to BitMEX research.

Looking ahead to 2024, factors like the upcoming halving event in April and increased institutional participation following the ETF launch are expected to drive Bitcoin. Mainstream adoption will be crucial, with traditional institutions likely to promote Bitcoin’s value proposition, according to Joel Kruger, the market strategist at LMAX Group.

Despite the positive trends, Kyle DaCruz, Director of Digital Assets Products at VanEck, notes that the full impact of institutional inflows is yet to be realized. The launch of VanEck’s spot bitcoin ETF, the VanEck Bitcoin Trust (HODL), on January 11 garnered over $75.5 million in inflows, holding $161.7 million in assets under management as of February 9, according to BitMEX. DaCruz highlights that many financial advisors lack access to ETFs due to platform requirements, and when this changes, it could unlock significant potential in the multitrillion-dollar financial advisor market.

More: The World of Cryptocurrency Credit Cards and Free Crypto Opportunities in 2023

Continue Reading

Trending