A Smarter Future for Financial Services? · Financial Services and the Next Economy - An Assumed or...

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Rohit Talwar

CEO - Fast Future

Financial Services Forum

Annual Members’ Conference:

The Future of Financial Services

London - 27th March 2018

A Smarter Future for Financial Services? Tapping AI's Potential to Drive Exponential Growth and Improvement

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Financial Services and the Next Economy -

An Assumed or Earned Role?Why:

• Do I need you?

• Are you the only ones allowed to do what you do?

• Do you do things the way you do?

• Do you charge what you do?

• Can’t we simply bypass you?

• Shouldn’t I try to innovate and disrupt you?

• Don’t you want me to ask these questions?

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‘Future Proofed’ Organisations Work on

3 Horizons in Parallel

4-10+ Years

Understand

Future Drivers

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Build Mindset, Talent, Agility and Innovation Culture

1-3 Years

Search for

Growth

1-12 Months

Operational

Excellence

Which Horizon Are We Preparing For?

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When Two Worlds Collide

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How Well do our Assumptions Serve us?

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The Mind Trap - Just Because I Think it…

• It doesn’t mean it’s true

• It doesn’t mean I have to

believe it

• It may not be my / the

best thought

• It may not be valid for

very long

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An Age of Scarcity or Abundance? The US$78-120 Trillion Opportunity

Star Wars Vs. Star Trek Thinking

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Nanotechnology /

Atomically Precise

Manufacturing

3D / 4D

PrintingNew Computing

Architectures

Hyperconnected

Internet of

Humanity

Immersivity /

Mixed Reality

Living

Food Chain

Transformation

Energy

Innovation

Robotics /

Drones

Brain

UploadingBlockchain

Technology

Healthcare

Transformation

Artificial

Intelligence /

Conscious

Technology

Synthetic

BiologyHuman

Augmentation

A Possibility Explosion

from Universally Available

Exponential

Science and Technology

Developments

Artificial

Intelligence

Why all the

Fuss?

Artificial intelligence (AI) is an area of

computer science that emphasizes the

creation of intelligent machines that

work and react like humans. E.g.

Speech recognition, visual perception,

learning, reasoning, inference,

strategising, planning, intuition,

decision-making, and language

translation.

Better AI Algorithms,

Big Data, Cloud,

Hardware Capability,

Massive Moneyrohit@fastfuture.com @fastfuture Image: Staticworld

Core Underlying Technologies

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The Hype is Blurring Seven Categories of AI

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1. Expert / Rules-Based Systems

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2. Domain Specific E.g. DeepMind AlphaGo Zero

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3. Context Awareness and Retention

E.G. Chatbots and Robo-Advisors

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• RBS Luvo

• Swedbank

Nina

• Mizuho

Pepper

• Future

Advisor

• Betterment

• 8Now

• Wahed

4. Theory of Mind / Reasoning Machines E.g. Robots are Starting to Compromise and Co-

operate More Effectively Than Humans

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5. Self-Aware - Artificial General Intelligence

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6. SuperIntelligence

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7. Singularity / Transcendence

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Front Runners e.g. BlackrockE.g. Fund Management, Company / Earnings / Retailer Location Analysis

AI-Enabled Ecosystem Thinking (E.g. N26)

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Natural Language Content Generation (E.g. Quill)

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Pefin – The World’s First AI Financial Advisor?

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Conversational AssistanceE.g. NatWest Cora ‘Digital Human’ and Nordnet Amelia

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Copy Trading E.g. Covesting

rohit@fastfuture.com @fastfuture Image: Covesting

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Managing Content Becomes a Prime AI TargetGeneration, Targeting, Distribution, Monitoring

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Marketing Automation with AI (E.g. Zalando)

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AI Influencer Marketing PlatformsPsychographic Evaluation of Brand Relevancy, Micro Segmentation, and Social Share of Voice

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Unlocking $30Tn – Personalised Content

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Blockchain Permission Marketing (E.g. Algebraix)

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Combining IoT, Blockchain and AI Unlocks

Exponential Marketing Opportunities

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Nations Competing via Blockchain / AI Fintech

E.g. Gibraltar, Estonia, Lithuania

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Regulatory Concerns – E.g. Algorithmic Trading

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Do senior management

genuinely understand it?

Will it behave as intended?

Can its decisions be

explained?

Can humans intervene if

problems occur?

AI Bias, Trust, and Governance

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Major Current Fields of Development

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Decentralized Artificial Intelligence

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AI Will Enable New Business ConceptsE.g. Self-Owning, Self-Insuring, Self-Repairing Autonomous Vehicles

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What’s Next: Now to 2020• Real Time Translation

• Smart Machines, Sensors, Objects

• Self-Editing Software

• Fully Automated Smart

Corporations (Decentralized

Autonomous Organizations)

• AI Adopted by all FS Firms

• Intelligent Agents Manage Our

Lives / Guard Our Data

• Swarm Robotics

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What’s Next: 2021 to 2025

• 70-90% of Customer Interactions

Managed by AI

• FS Product Development

Increasingly Done / Tested by AI

• Crowd Defined and Designed FS

Products

• AI Deployed Across all of

Government / Courts

• Autonomous Vehicles Everywhere

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What’s Next: 2026 to 2035

• Globally Approved Crypto Tokens

• Fully Autonomous DAO Banks

• AI Penetrates all Sectors

• Artificial Animal and Ecosystem Intelligence

• Self-Aware / Self-Replicating Software

Systems and Robots

• Artificial General Intelligence?

• Artificial Superintelligence??

• The Singularity????

‘Smart Machines’ will be Central to our ExistenceAccess to Our Data May be Strictly Controlled

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Organizations

and Nations as

Constantly

Evolving App Ecosystems

Individuals

Existing

Within an AI

App Cocoon

and Protected

by Intelligent Agents

The World’s Biggest Banks / Everything?

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To Providers - I Become My DataPersonalized / Dynamically Updated Marketing

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Genuinely

Personalised Product

Targeting

Multi-Dimensional

Customer / Prospect

Predictive Profitability Analysis

Bot Sensitivity Training / RetrainingDeep Facial Recognition / Sentiment Analysis

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User / Community Defined Products and Services

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Tokenized Assets and Rewards

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Airline and Store Cards

Workplace Micro-Learning

Credits

Education Micro-Rewards

Social Network Size / Likes

Community Trading Schemes

Multi-Asset Exchanges

Society-Wide Micro-Payment Infrastructures

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Banking the Unbankable

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Addressing Global Grand Challenges

So how do

we Create

a Very

Human

Business?

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Navigating a Path Across the ‘Messy Middle’

What do we Stop?

• Customer Interface

• Process

• Organisation

• Information / Systems

• Regulatory

• Human

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Mindset - 3 Horizons Scanning

5-10 Year Scenarios 1-3 Year Strategy

• 12 Months

• 1-3 Years

• 4-10 Years

Evolving

Digital

Mindsets and

New World

Literacy

vs.

Information

and Initiative

Overload

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Deep Dives with Key

Technologies

30-Day Signalling Pilots of

“Quick Wins”

100 Day Experiments: Learn –

Test – Iterate

Game Changer Workshops

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Getting Started

‘Being Human’ May be the Key Differentiator Build Mindsets and Skills to Imagine and Experiment our way to the Future

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• Accelerated Learning

• Lifewide Learning /

Curiosity

• Self-Awareness

• Self-Management /

Regulation

• Emotional / Cultural /

Contextual Sensitivity

• Foresight / Sense

Making

• Tolerance of

Uncertainty

• Problem Solving

• Scenarios / Systems

Perspective / Design

Thinking

Support for Life in the Modern Digital WorkplaceLifelong Support Tools for Displaced Employees

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The Revolution will not be Predictable (or Televised)

Thank You