DoFinTechand financial incumbents have different experiences and perspectives on the adoption of artificial intelligence?

Abstract

Although FinTechs and incumbents are applying artificial intelligence (AI) differently, they both expect that the status-quo will likely be maintained through collaboration rather than competition. Both perceive BigTechs as a strategic threat given their AI capabilities and their entrance into financial services. Incumbents are experimenting with more different kinds of AI than FinTechs: FinTechs use the technologies for new products and services while incumbents are using them for incremental innovations to existing products and services. The incumbents expect that adopting AI will lead to a loss in jobs of 9% over the next 10 years and, because these companies represent a large percentage of the workforce (median company size surveyed has more than 10,000 employees), this loss in jobs cannot be compensated by the 19% increase in jobs provided by existing FinTechs (median company size surveyed has less than 50 employees). AI can reduce and increase risk, and most incumbents and FinTechs agree that there will be no effect on risk at the organizational level but that there will be an increase in risk at the societal level. While both FinTechs and incumbents agree on the relative importance of legal and human hurdles and consider the biggest hurdle is related to data and regulations concerning data, FinTechs perceive these hurdles to be greater than do incumbents.

Internet Financial Risk Management in the Context of Big Data and Artificial Intelligence

“…e foundation of Internet finance is the development of information technology, and information carries the development of Internet finance like blood. erefore, the most important task of understanding Internet risks is to ensure information security [39,40].…”

Analyzing the Barriers Affecting the Adoption of Green Computing: A Hybrid Method Approach

“…Financial Costs (Schwister & Fiedler, 2015), (Luthra et al, 2014) Managerial Complexity (Schwister & Fiedler, 2015), (Chien et al, 2022), (Agarwal et al, 2021) Transactional Risk (Schwister & Fiedler, 2015), (Luthra et al, 2014), (Solangi et al, 2021), (Xia et al, 2019) Legal Barriers (Schwister & Fiedler, 2015), (Luthra et al, 2014), (Zhang et al, 2021) Technological Barriers Lack of Infrastructure (Luthra et al, 2014), (Abellana & Mayol, 2022), (Khandelwal et al, 2019) Technological Complexity (Schwister & Fiedler, 2015), (Luthra et al, 2014), (Acakpovi et al, 2019) Perceived Cost (Schwister & Fiedler, 2015), (Yang & Zhao, 2011), (Xia et al, 2019) Perceived Risk (Abellana & Mayol, 2022), (Xia et al, 2019), (Khandelwal et al, 2019) Internal Lack of Necessary Technical Skills and Knowledge (Thomas et al, 2016), (Luthra et al, 2014) Lack of Environmental Awareness (Bagla et al, 2022;Ogiemwonyi et al, 2020) Firm's Size (Thomas et al, 2016), (Xia et al, 2019), (Abellana & Mayol, 2022) Switching Cost (Schwister & Fiedler, 2015), (Younis & Sundarakani, 2020) barriers that defines an environment in which the organization operates, and (2) Internal barriers that defines firm's related factors as enablers of change implementation. External barriers are further categorized into two groups of adoption costs and technological barriers.…”

Artificial intelligence and loan default: The case of commercial banks in India

“…FinTech and officials deploy AI differently. The formers use the technologies for new products and services while the latter uses them for incremental innovations to existing products and services (Zhang et al, 2021).…”

“…Machine Learning and data analytics in banking organizations have become a trend and essential to keep up with the market competition and reduce credit risks (Motwani et al, 2018). Most incumbents and FinTech agree that AI can reduce or increase risk without affecting risk at the organizational level but that there will be an increase in risk at the societal level (Zhang et al, 2021).…”

“…Most incumbents and FinTech agree that AI can reduce or increase risk without affecting risk at the organizational level but that there will be an increase in risk at the societal level (Zhang et al, 2021).…”