Fintech Weekly | Issue 95

Thomson Reuters acquires UK AI legal startup Safe Sign

Recently, Thomson Reuters, a global news and technology giant, announced the acquisition of Safe Sign Technologies, a British AI start-up, for an undisclosed amount. Safe Sign was founded in 2022, focusing on developing large-scale language models for the legal industry. Its founding teams come from leading artificial intelligence institutions such as Cambridge, DeepMind, Harvard, and MIT.

 

Information link: https://www.safesigntechnologies.com

Comment: Unlike competitors in the field of artificial intelligence legal technology, Safe Sign has not previously announced any funding from external investors. It is reported that Thomson Reuters has developed its own artificial intelligence tool CoConseil. But the company believes that acquisitions are an important way to help it maintain its industry-leading position. In fact, since 2020, Thomson Reuters has acquired 10 companies covering multiple fields including legal technology, software, and payments.

 

Accelerating AI investment, South Korean securities firms actively promote digital transformation

According to foreign media reports, several South Korean securities firms have recently accelerated their investment in artificial intelligence to better cope with digital transformation. For example, last Sunday, Future Asset Securities in South Korea announced the establishment of a global office for artificial intelligence strategy in November and operated as an independent corporate entity in New York. In July, New Korea Securities recruited an artificial intelligence expert from Samsung SDS and subsequently established a new department specifically responsible for overseeing all artificial intelligence application projects.

 

Information link: https://www.weiyangx.com/439230.html

Comment: Eugene Investment&Securities signed a memorandum of understanding with Seoul based Moat AI company this month to establish a partnership in AI based private banking services.

 

 

Using blockchain to prevent AI from stealing copyrights, startup Story raises $80 million in funding

Intellectual property theft is not a new phenomenon, but the rise of artificial intelligence has made this issue even more prominent, as generative AI models can take copyrighted materials for training and learning without permission. And Story Protocol, a startup from San Francisco, USA, hopes to help solve this problem.

 

Information link: https://www.cnbc.com/2024/08/21/blockchain-startup...

Comment: Story's blockchain network allows intellectual property owners to store their intellectual property on the platform and embed terms of use (such as licensing fees) into smart contracts, ensuring that owners are compensated when their intellectual property is used.

 

 

Focusing on music marketing services, South Korean fintech company Naivy receives investment from Kakao Bank

Recently, Kakao Bank, an Internet bank in South Korea, announced that it would make an equity investment in Naivy, a financial technology startup focusing on serving musicians and developing music product marketing services. Naivy was founded in 2017, and through its PLAM application, users can receive small cash incentives while listening to music, while artists can also use this to obtain marketing and promotion services.

 

Information link: https://www.koreatimes.co.kr/www/biz/2024/08/175_380893.html

Comment: In addition to equity investments, Kakao Bank has also announced the integration of Naivy services into its banking application, allowing users to directly access music services through tags in the application. For example, after listening to a song and leaving a brief comment, the user's Kakao Bank account will directly receive a red envelope reward of 10 Korean won or 20 Korean won.

Global insurance spending is expected to approach $10 trillion by 2028

According to data provided by Stocklytics. com, global insurance spending is expected to maintain a growth trajectory, reaching nearly $10 trillion by 2028. The report points out that the global insurance market covers both life and non life insurance sectors, with a growth rate of 25% in the past four years and a total premium of over 9 trillion US dollars this year. Although the growth rate has slowed down since reaching its peak in 2021, it is expected that market spending will still reach a historic high in the coming years.

 

Information link: https://www.mckinsey.com.cn/

Comment: There are many factors driving market growth, including economic expansion, the rise of the middle class, technological innovations such as insurance technology, and the constantly changing risk environment. According to Statista's data, the total underwriting premiums in the global insurance market were $7.24 trillion in 2017 and are expected to rise to nearly $8 trillion by the end of 2020.

 

Guy Carpenter claims that the use of artificial intelligence increases the risk of network event aggregation

A recent paper published by Guy Carpenter points out that the rapid application and continuous development and deployment of artificial intelligence in recent years have increased the risk of network event aggregation from malicious and unexpected sources. The paper points out four main ways in which artificial intelligence development and deployment contribute to this aggregation: software supply chain risk, expanding attack surface, increasing data exposure, and increasing use in network security operations. If enterprises want to use AI, they must deploy it within the company network or externally through third-party providers such as ChatGPT or Claude.

 

Information link: https://www.secrss.com/articles/60362

Comment: In both cases, if the third-party AI model is compromised or fails, it will pose a risk to all customers who rely on the model. After deployment, the AI model will interact with users by processing inputs and generating outputs. However, these processes are easily subject to malicious or accidental manipulation.

 

AIA Australia launches new membership insurance portal website

AIA Australia has launched a new membership insurance portal, providing a simplified insurance experience for group insurance customers. One of the main features of the new portal website is that members can receive real-time updates on the status of claims. In addition, the portal website also allows for instant file upload and integrated digital identity verification, thereby reducing the administrative burden on trustees and speeding up claims decision-making.

 

Information link: https://www.aia.com/zh-hk/about-aia/solutions-to...

Comment: In addition, members can also obtain personalized content through relevant articles, ensuring that they understand insurance knowledge and receive relevant training. The membership insurance portal also provides secure digital access for lawyers, caregivers, and other third-party representatives to efficiently process and track claims on behalf of members. Multi factor authentication ensures security and privacy.

 

The Hong Kong Insurance Regulatory Authority announces market behavior sector reform. The Hong Kong Insurance Regulatory Authority has released the latest "Focus Code of Conduct", which includes significant updates to the insurance industry, such as new compliance regulations for brokers, introduction of licensing fees, and improvement of standards for life insurance brokers, especially in referral business. A major highlight of this issue is the new guidelines issued by the Insurance Authority for insurance brokers who use referral models, especially those aimed at attracting mainland Chinese tourists.

 

Information link: https://www.ia.org.hk/sc/infocenter/press_releases/20240221.html

Comment: The Insurance Regulatory Commission emphasizes that insurance brokers must ensure that unlicensed introducers do not participate in regulated activities, including providing insurance product advice or selling insurance products. Failure to comply with regulations may result in serious consequences, such as suspension or revocation of licenses.Global insurance spending is expected to approach $10 trillion by 2028

According to data provided by Stocklytics. com, global insurance spending is expected to maintain a growth trajectory, reaching nearly $10 trillion by 2028. The report points out that the global insurance market covers both life and non life insurance sectors, with a growth rate of 25% in the past four years and a total premium of over 9 trillion US dollars this year. Although the growth rate has slowed down since reaching its peak in 2021, it is expected that market spending will still reach a historic high in the coming years.

 

Information link: https://www.mckinsey.com.cn/

Comment: There are many factors driving market growth, including economic expansion, the rise of the middle class, technological innovations such as insurance technology, and the constantly changing risk environment. According to Statista's data, the total underwriting premiums in the global insurance market were $7.24 trillion in 2017 and are expected to rise to nearly $8 trillion by the end of 2020.

 

Guy Carpenter claims that the use of artificial intelligence increases the risk of network event aggregation

A recent paper published by Guy Carpenter points out that the rapid application and continuous development and deployment of artificial intelligence in recent years have increased the risk of network event aggregation from malicious and unexpected sources. The paper points out four main ways in which artificial intelligence development and deployment contribute to this aggregation: software supply chain risk, expanding attack surface, increasing data exposure, and increasing use in network security operations. If enterprises want to use AI, they must deploy it within the company network or externally through third-party providers such as ChatGPT or Claude.

 

Information link: https://www.secrss.com/articles/60362

Comment: In both cases, if the third-party AI model is compromised or fails, it will pose a risk to all customers who rely on the model. After deployment, the AI model will interact with users by processing inputs and generating outputs. However, these processes are easily subject to malicious or accidental manipulation.

 

AIA Australia launches new membership insurance portal website

AIA Australia has launched a new membership insurance portal, providing a simplified insurance experience for group insurance customers. One of the main features of the new portal website is that members can receive real-time updates on the status of claims. In addition, the portal website also allows for instant file upload and integrated digital identity verification, thereby reducing the administrative burden on trustees and speeding up claims decision-making.

 

Information link: https://www.aia.com/zh-hk/about-aia/solutions-to...

Comment: In addition, members can also obtain personalized content through relevant articles, ensuring that they understand insurance knowledge and receive relevant training. The membership insurance portal also provides secure digital access for lawyers, caregivers, and other third-party representatives to efficiently process and track claims on behalf of members. Multi factor authentication ensures security and privacy.

 

The Hong Kong Insurance Regulatory Authority announces market behavior sector reform. The Hong Kong Insurance Regulatory Authority has released the latest "Focus Code of Conduct", which includes significant updates to the insurance industry, such as new compliance regulations for brokers, introduction of licensing fees, and improvement of standards for life insurance brokers, especially in referral business. A major highlight of this issue is the new guidelines issued by the Insurance Authority for insurance brokers who use referral models, especially those aimed at attracting mainland Chinese tourists.

 

Information link: https://www.ia.org.hk/sc/infocenter/press_releases/20240221.html

Comment: The Insurance Regulatory Commission emphasizes that insurance brokers must ensure that unlicensed introducers do not participate in regulated activities, including providing insurance product advice or selling insurance products. Failure to comply with regulations may result in serious consequences, such as suspension or revocation of licenses.

BBVA established two new AI research centers in Mexico and Türkiye

Recently, Spanish banking giant BBVA announced that it will build two AI factories in Mexico and Türkiye. To meet the needs of team building, BBVA has hired 230 professional technical personnel, including data scientists, machine learning engineers, developers, data architects, and digital product experts. These new employees are part of the global technical talent recruitment strategy of this Spanish bank. In the past two years, BBVA has added 7187 professionals in the field of data and technology, and plans to add 2700 new employees by 2024.

 

Information link: https://www.bbva.com/en/innovation/bbva...

 

Indonesian Financial Services Authority launches framework to enhance digital resilience of banking industry

On August 21st, the Indonesian Financial Services Authority (OJK) released the "Digital Resilience Guidelines" to enhance the digital resilience of the Indonesian banking industry. This is part of OJK's ongoing efforts to guide banks in completing the '2022 Bank Digital Transformation Blueprint'. The release of this guide clarifies the role of artificial intelligence in the banking industry. Although digitization brings efficiency, challenges and risks also need to be mitigated to ensure the stability of the banking industry. This requires a resilient banking system as it affects the continuity of bank operations and business. The "Digital Resilience Guidelines" outline the preparation, response, and recovery strategies for banks to cope with technological disruptions, including measures to protect consumers and minimize the impact of network events on operations, reputation, and finances.

 

Information link: https://fintechnews.sg/100502/digital-transformation/ojk-introduced-digital-resilience-guide/

 

Swiss bank launches instant payment system

On August 22nd, about 60 financial institutions in Switzerland have successfully integrated instant payment systems, which can currently handle over 95% of retail payment transactions in the country. By the end of 2026, all financial institutions involved in retail payments are expected to be connected to the system. Some institutions have already launched retail services that allow customers to make instant payments, and it is expected that more banks will launch similar services in the coming months. This progress was made after the launch of the next-generation national payment system in November 2023, which provides the technological infrastructure for instant account to account transactions, with final settlements completed within seconds.

 

Information link: https://regtechafrica.com/global-swiss-banks-launch-instant-payments-system/

 

The Monetary Authority of Singapore collaborates with banks and technology companies to enhance quantum security

In February 2024, the Monetary Authority of Singapore (MAS) released a consultation report emphasizing the risks of quantum technology to cybersecurity and urging financial institutions to conduct concept validation trials of quantum security solutions. MAS proposes that the financial sector needs to achieve 'cryptographic agility' in order to smoothly transition to post quantum encryption and avoid significant damage to IT systems and infrastructure. To this end, MAS has committed to providing $100 million in funding to promote the development of artificial intelligence and quantum computing technologies in the financial sector, including supporting pilot projects that use post quantum cryptography (PQC) and quantum key distribution (QKD) to protect critical data. QKD is a secure communication method that ensures that only the sharing party knows the encryption key, and is considered a key means of resisting potential quantum threats. On August 15th, MAS announced that it will collaborate with HSBC, Dahua Bank, DBS Bank, and OCBC Bank in the coming months to test the QKD solutions provided by SPTel and SpeQtral. Partners will conduct a QKD concept validation sandbox, focusing on financial industry use cases to evaluate the feasibility and applicability of QKD in quantum secure communication. With the development of quantum technology, the financial industry needs to guard against cybersecurity threats. These experiments will help MAS and financial institutions understand the impact of QKD on operations and respond to challenges early. The insights gained from the experiment will assist in formulating technology and network risk management policies, ensuring that the financial system has quantum protection capabilities.

 

Information link: https://regtechafrica.com/global-mas-partners-with-banks-and-tech-firms-to-enhance-quantum-security/

The Australian Senate has passed a new mandatory climate information disclosure law

On August 22nd, a mandatory climate reporting bill for large and medium-sized companies was passed, marking an important step for the country in establishing a new climate risk disclosure framework. This new proposed legislation was introduced earlier this year and will introduce climate related reporting requirements that are largely consistent with the standards recently released by the International Sustainable Development Standards Board (ISSB) of the International Financial Reporting Standards Foundation, including disclosure of climate related risks and opportunities, as well as greenhouse gas emissions across the entire value chain.

 

Information link: https://www.bbva.com/en/innovation/bbva...

 

By 2040, the global installed capacity of offshore wind power will exceed 520 gigawatts, and Asia is expected to achieve significant growth

According to a report by Rystad Energy, the global installed capacity of offshore wind power is expected to exceed 520 gigawatts (GW) by 2040, with a 7% increase in new installed capacity last year, and this trend is expected to continue. It is expected that the new installed capacity will increase by 9% by the end of 2024. Europe will dominate this expansion, especially through floating wind power projects, which are crucial for achieving national energy goals. By 2040, Europe is expected to account for over 70% of global floating wind power installations, with the UK, France, and Portugal leading the way. In addition to Chinese Mainland, by 2040, Asia will account for 20% of the global installation of floating wind energy, and Taiwan, China, South Korea and Vietnam will become the main markets.

 

Information link: https://gwec.net/wp-content/uploads/2022/06/CN...

 

India proposes to expand the sustainable financial framework of the securities market

The Securities and Exchange Board of India (SEBI) will expand the scope of sustainable financing in its securities market with the aim of incorporating new ESG labeling tools. The proposed framework includes the introduction of sustainable securitized debt instruments or 'green securitization', which will greatly enrich the range of investment products for sustainable financing. The SEBI consultation document indicates that in addition to existing green debt securities, issuers may soon be able to raise funds through social bonds, sustainable bonds, and sustainability linked bonds.

 

Information link: https://xueqiu.com/2016737460/268698744

 

Standard Chartered Bank launches ESG linked cash account for corporate clients

On August 13th, the international banking group Standard Chartered Bank announced the launch of a new ESG linked cash account, allowing corporate clients to receive rewards through credit balance interest rates or fee pricing to achieve significant ESG related goals. The new ESG linked cash account is the latest product in Standard Chartered Bank's range of sustainable focused trading bank cash solutions, which also includes sustainable accounts that allow cash to be retained for daily working capital while using surplus cash to support activities that contribute to the United Nations Sustainable Development Goals, sustainable trade financing aimed at helping clients implement more sustainable practices, and sustainable financial institution trade loans that provide liquidity to support trade flows related to sustainable development.

 

Data source: https://www.esgtoday.com/standard-chartered-rolls-out-esg-linked-cash-accounts-for-corporate-clients ）

South Africa releases national policy framework on artificial intelligence, according to local media reports

The South African Department of Communications and Digital Technology recently released a national policy framework, which is also a key "first step" for South Africa to develop a comprehensive national artificial intelligence policy. At present, the department is soliciting feedback from the information and communication technology industry and other stakeholders on relevant content, and is expected to end by the end of September. This policy aims to cultivate a strong artificial intelligence ecosystem by coordinating actions in research and development, talent development, and infrastructure, ensuring that artificial intelligence catalyzes digital society, digital economy, and digital inclusion.

 

Information link: http://world.people.com.cn/n1/2022/1025/c1002-32550892.html

 

South Korea announces legislative amendments to the Circular Economy and Social Law Enforcement Order

The South Korean Ministry of Environment stated that a legislative announcement was made on August 19th regarding the revised implementation of the Circular Economy and Society Act and its detailed rules. The amendment includes detailed regulations and rules that will be implemented next year in the "Circular Economy Implementation Law" revised two years ago. According to the amendment, starting from next year, if the "Consumer Dispute Resolution Standards" stipulate that the retention period for product components exceeds 3 years, the enterprise should retain the components for a period exceeding this period and provide them to consumers on time, while guiding consumers on how to repair them themselves. These products include smartphones, tablets, televisions, refrigerators, air conditioners, navigation, cameras, laptops, computers and peripheral devices, hair dryers, electric shavers, cooking utensils, humidifiers, vacuum cleaners, etc.

 

Information link: http://kr.mofcom.gov.cn/article/jmxw/202408/20240803530596.shtml

 

Trump Considers Inviting Musk to Cabinet or Abolishing Electric Vehicle Tax Benefits

On August 19, 2024, former US President Donald Trump stated that if he succeeds in his presidential campaign, he will consider providing a cabinet or advisory position for Tesla and SpaceX CEO Elon Musk in the government. But the Republican nominee also stated plans to cancel the $7500 tax credit for certain new electric vehicles, which could affect sales of Tesla electric cars. After a campaign event in York, Pennsylvania, Trump stated that "tax credits and tax incentives are usually not a good thing.

 

Information link: https://finance.sina.com.cn/jjxw/2024-08-20/doc-inckfuvu5765001.shtml

 

Han Chaoye Reaches Consensus on Direct Subsidies for Semiconductors

On the 16th, the South Korean semiconductor industry revealed that the representative of the National Power Party, Han Dong hoon, proposed at the recent Supreme Council meeting that compared with countries such as the United States and Japan, South Korea's support for the semiconductor industry is seriously insufficient, and should shift from indirect subsidies such as tax incentives to direct subsidies such as subsidies. As a member of the opposition Democratic Party, Kim Han kyu proposed that it is necessary for the government or local autonomous groups to support some or all of the investment and construction costs of the country's cutting-edge strategic industries. Some analysts suggest that although President Yoon Suk yeol and Deputy Prime Minister for Economic Affairs Choi Sang mu have expressed a negative attitude towards direct subsidies, if lawmakers from both parties reach an agreement on direct subsidies for semiconductors and promote the implementation of the Semiconductor Special Act, it may be possible to achieve direct subsidies.

 

Information link: https://www.donga.com/cn/article/all/20240729/5088208/1

Trump publicly endorses The Defiant Ones, a family encrypted platform

On August 22, 2024, former President Trump of the United States posted on his own social platform, Truth Social, saying, "For a long time, ordinary Americans have been squeezed by big banks and financial elites. It is time for us to take a stand together.". It is reported that this is also the first time the Republican presidential candidate has used a personal platform to promote his own encrypted platform, The Defiant Ones. According to sources, this platform may first enter the field of "digital real estate", including selling digital versions of assets in the metaverse, as well as assets related to the real world (such as blockchain based mortgage lending business).

 

Information link: https://www.cnbc.com/2024/08/22/trump-crypto-defi-protocol-launch.html

 

The China US Financial Working Group held its fifth meeting

On August 15-16, 2024, the China US Financial Working Group held its fifth meeting in Shanghai. The meeting was co chaired by Xuan Changneng, Vice President of the People's Bank of China, and Naiman, Assistant Secretary of the Treasury of the United States. The National Financial Supervisory Administration, China Securities Regulatory Commission, as well as departments such as the Federal Reserve and the US Securities and Exchange Commission attended the conference. The two sides had a professional, pragmatic, candid and constructive communication on the overall plan of the third plenary session of the 20th Central Committee of the CPC to further comprehensively deepen reform, the economic and financial situation and monetary policy of China and the United States, financial stability and regulation, securities and capital markets, cross-border payments and data, international financial governance, financial technology, sustainable finance, anti money laundering and anti terrorist financing, and other financial policy issues of concern to both sides.

 

Information link: https://www.gov.cn/lianbo/bumen/202408/content_6969241.htm

 

Federal Reserve Daley: It's time to consider cutting interest rates

Federal Reserve FOMC member Daley said this year that recent economic data has given me "more confidence" that inflation has been brought under control. It is time to consider adjusting the current interest rate range of 5.25% -5.50%. Although the labor market is slowing down, it is not weak. The US CPI data released last week showed that the inflation rate dropped to 2.9% in the year ending in July, a three-year low. Daley said, "Inflation has been gradually moving towards 2% since the first quarter of this year." The Federal Reserve hopes to relax the "restrictive" nature of its policies while still maintaining some restraint to "fully complete" the work of addressing inflation.

 

Information link: https://www.36kr.com/newsflashes/2912270412470914

 

European Central Bank Managing Director Ren: The recent increase in negative growth risks in the eurozone strengthens the reasons for the European Central Bank to cut interest rates in September

European Central Bank Managing Director Ren stated that there are no clear signs of recovery in the manufacturing sector; Industrial production may not be as temporary as expected; The recent increase in negative growth risks in the eurozone further strengthens the reasons for the European Central Bank to cut interest rates at its next monetary policy meeting in September.

 

Information link: https://finance.sina.com.cn/roll/2024-08-20/doc-inckfuvq0602468.shtml

Bezos' space company plans to conduct rocket maiden flight in mid October

According to foreign media reports, Blue Origin and its heavy carrier rocket, New Glenn, which carries NASA's Mars mission, finally have a tentative launch date. The company announced on Friday that the first flight will take place on October 13th, carrying two probes manufactured by Rocket Lab to assist NASA in studying the impact of solar wind on the Martian atmosphere. This will be the first flight of the New Glenn rocket after years of development delays, and this date coincides with the best launch window to Mars, which occurs approximately every two years depending on the alignment of the planets.

 

Information link: https://www.thepaper.cn/newsDetail_forward_13658930

 

Apple may release new iPhone, AirPods, and Watch models on September 10th

According to informed sources, Apple plans to hold its largest product launch event of the year on September 10th, during which the company will introduce its latest iPhones, watches, and AirPods. After its release, the new phone will go on sale on September 20th, in line with Apple's consistent approach in recent years. At the same time, Apple's wearable devices will undergo even greater changes. The Apple Watch Series 10 will be thinner but equipped with a larger screen. Apple will also change its AirPods product line and launch new low-end and mid-range versions. The company will provide noise cancellation on mid-range AirPods for the first time, while entry-level models will undergo their first update since 2019. The company also plans to transition its Mac computers to M4 processors later this year, but updates for Mac typically take about a month after the annual iPhone launch event.

 

Information link: https://www.apple.com.cn/newsroom/2022/09/apple...

 

The Japanese government strengthens control over the chip supply chain network

The Japanese Ministry of Finance stated that Japan has decided to apply foreign trade regulations to chip manufacturing equipment as part of measures to ensure supply chain stability. The department stated in a statement that foreign investors now need to be notified in advance when making direct investments in equipment related to chip manufacturing, including when acquiring 1% or more of the shares of listed companies or buying shares of non listed companies. The Japanese Ministry of Finance stated that other products included in the so-called "core business areas" list include advanced electronic components, machine tool parts, marine engines, optical cables, and multifunctional machines. The department stated that its core business areas now cover all specific key products as stipulated by the National Economic Security Promotion Law.

 

Information link: https://www.36kr.com/newsflashes/2694303235632772

 

OpenAI will allow enterprise clients to customize the most powerful artificial intelligence models

Recently, OpenAI announced that it will release a new feature that allows enterprise clients to customize OpenAI's strongest model GPT-4o using their own company's data. Nowadays, the artificial intelligence products of startups are facing increasingly fierce competition, and companies urgently need to demonstrate the benefits they have gained from investing in artificial intelligence. The customized feature launched by OpenAI is commonly referred to as "fine-tuning" in the artificial intelligence industry. Fine tuning allows existing artificial intelligence models to receive additional training on specific types of tasks or thematic domains. For example, a company that produces skateboards may fine tune its artificial intelligence model so that it can be used as a customer service chatbot to solve detailed issues related to wheel and skateboard care.

 

Information link: https://www.yicai.com/news/102239531.html

 

 

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