New Codes of Finance - Issue #485 September 12th, 2024

The global effort to harmonize values on artificial intelligence progressed after a meeting of Council of Europe justice ministers. The United States, European Union, and United Kingdom are expected to sign the Framework Convention on AI, emphasizing human rights and democratic principles as central to regulating AI in both public and private sectors.

Faisal Toukan, CEO and co-founder of UAE-based fintech Ziina, outlined the company's strategy to transform from a simple payments platform into a comprehensive financial ecosystem.

In November, South Africa joined 46 other countries in adopting the Crypto Asset Reporting Framework (CARF), which sets standards for reporting crypto transactions. While full implementation in most countries is expected by 2027, SARS has already begun issuing tax notices and tightening crypto regulations to ensure compliance.

Lloyds Bank is enhancing its trade financing sales by incorporating artificial intelligence (AI) to automate the document-checking process, ensuring compliance with industry regulations.

The Investment Association (IA) has opened applications for the eighth cohort of its annual Engine Innovator Programme, a FinTech accelerator aimed at the investment management industry. Engine, the IA's dedicated FinTech hub, collaborates with over 150 FinTech firms and partners to drive technology adoption within the sector.

Chinese fintech giant Ant Group, which operates the popular payment service Alipay, has introduced a stand-alone AI app designed as a virtual assistant. This move is part of the company’s broader strategy to transform large language models (LLM) into consumer-facing services.

The rapid evolution of artificial intelligence is reshaping industries, with fintech standing out as a key beneficiary. As the financial sector continues to digitize, AI is set to transform areas like credit scoring and fraud detection. This article delves into AI's potential in fintech, particularly its impact on credit scoring and its integration with blockchain technology.

Financial exclusion occurs when individuals are unable to access mainstream financial services, reinforcing poverty and inequality. Banking access is often essential for securing housing, jobs, and social benefits. Despite the rise of digital financial solutions, many underserved groups remain reluctant to adopt fintech due to obstacles like lack of trust, limited digital literacy, and privacy concerns. These challenges are further exacerbated by systemic inequalities that disproportionately affect low-income individuals, minorities, and rural communities.