SUSANNE CHISHTI is the CEO of FINTECH Circle and the Founder of the FINTECH Circle Institute, a leading global FinTech learning and innovation platform to gain FinTech and digital skills. She is the bestselling author of several FinTech books and a global public speaker.

IVANA BARTOLETTI is Technical Director, Privacy, at Deloitte, co-founder of the Women Leading in AI Network and an international public speaker and media commentator. Ivana was awarded Woman of the Year 2019 in the Cyber Security Awards.

ANNE LESLIE is a Senior Managing Consultant at IBM Security. Passionate about responsible technology, she has spent her entire career at the intersection between financial services, regulation and IT, in pivotal roles in both sales and advisory.

SHÂN M. MILLIE specializes in practical innovation primarily for firms and high-performing individuals in Insurance/InsurTech, focusing on Design & Incubation and Business Storytelling. She founded Bright Blue Hare in 2016, and is Founding Associate of London Market specialists, GreenKite.

Preface viii

About the Editors xi

Acknowledgements xiii

1. AI: Need to Know

The Future of AI in Finance 6

What is AI and How to Make It Work for You 9

Getting to Day Zero: Let's Get the Foundation Right 11

Navigating a Sea of Information, News and Opinion with Augmented Human Intelligence 14

The Seven Deadly Sins of AI 16

A New Internet, Data Banks and Digital World War 18

AI: A Cross Country Analysis of China versus the West 20

The AI Advantage: Near-Term Workforce Opportunities and Challenges 23

The Art of Involving Boards in Embracing AI 26

2. Deposits and Lending

AI in Lending 34

Financial Technology and China's Inclusive Finance 39

The Future of Deposits and Lending 43

Applications of AI in Deposits and Lending 46

Showcase and Customer Service: Leveraging Chatbots in the Banking Industry 49

The Power of AI to Transform the Global SME Credit Landscape 52

Using AI for Credit Assessment in Underserved Segments 54

Why Video Games Might Help You Buy Your First House 56

AI Opportunities in the African Financial Sector: Use Cases 58

3. Insurance

Insurance and AI: Choices in Leadership, Purpose and Trust 65

Drifting into Algocratic Insurance? 71

Moving the AI Needle: Strategies for Health Insurers to Put AI into Practice 75

AI and Healthcare: Doctor Will FaceTime You Now! 78

Using Artificial Intelligence in Commercial Underwriting to Drive Productivity Growth 81

The Digitally-Enabled Underwriter: How AI is Transforming Commercial Insurance Underwriting 83

Improving Policy Life Cycle Management with AI and Data Science 86

Disrupting the Insurance Value Chain 89

Cutting to the Chase: Mapping AI to the Real-World Insurance Value Chain 92

4. Payments

Artificial Intelligence: The Next Leap Forward in the Payments Revolution 102

Frictionless Payments: If or When? 105

Big Data, AI and Machine Learning: How to Unlock Their Potential in the New Payment Environment 108

The Rise of Conversational AI Platforms 111

Two Dimensional Virtual Vertical Integration: Solving the Impossible SC Problem 113

5. Investment and Wealth Management

The True Value of AI to Transform Push/Pull Wealth Management Offers 122

Machine Learning in Digital Wealth Management 125

The Impact of AI on Environmental, Social and Governance (ESG) Investing: Implications for the Investment Value Chain 129

AI in Indian Investment and Asset Management: Global Perspective 132

Finding Order in the Chaos: Investment Selection Using AI 134

Dispelling the Illusion 137

ETF 2.0: Mega Block Chains with AI 140

Fear and Greed 143

6. Capital Markets

Introduction on AI Approaches in Capital Markets 150

AI, Machine Learning and the Financial Service Industry: A Primer 157

Compliance as an Outcome 160

Alternative Data and MetaQuants: Making the Most of Artificial Intelligence for Visionaries in Capital Markets 163

AI and Capital Markets: Where to Now? 166

7. Trust, Transparency and Ethics

Trust in FinTech and AI: Some Introductory Reflections 172

Building Trust through Sound Governance 175

Independent AI Ethics Committees and ESG Corporate Reporting on AI as Emerging Corporate and AI

Governance Trends 180

The Wisdom Vantage 186

AI and Business Ethics in Financial Markets 188

AI Trust, Ethics, Transparency and Enablement 191

Invisible Hand, Spontaneous Order and Artificial Intelligence 195

Transforming Black Box AI in the Finance Industry: Explainable AI that is Intuitive and Prescriptive 197

Making Data Your Most Valuable Asset 200

The Data Promise 202

8. Legal Risk and Regulation

AI and the Law: Challenges and Risks for the Financial Services Sector 209

Algorithm Assurance 214

Regulation of AI within the Financial Services Sector 217

Is Risk-Based Regulation the Most Efficient Strategy to Rule the Unknown Risks Brought by FinTech? 220

The Changing Face of Regulatory, Compliance and Audit 223

Robocop on Wall Street 225

Sure, AI Can Answer Our Questions - But Who Will Answer Our Questions About AI? 229

Technology for Regulations and Compliance: Fit4Future! 232

9. The Future of AI in Finance

Welcome to the Future 238

An AI-Embedded Financial Future 242

Open Banking, Blockchain and AI: The Building Blocks for Web 3.0 245

Automated Machine Learning and Federated Learning 248

Deep Learning and Financial Regulation 251

AI for Development and Prosperity 254

The AI Trends That Will Shape Winning Businesses 257

Mastering the AI Talent Transformation: Present and Future 259

Humans versus Machines: Who Will Still Have a Job in 50 Years? 262

Is AI Ready for Morality? 265

Confessions of an AI Portfolio Manager 267

Appendix 270

List of Contributors 272

Index 283