Home / International / Large fintechs tipped to benefit most from AI
8 October 2018
Large fintech firms are set to benefit the most from the revolution in artificial intelligence-driven business (AI), according to a report by Deloitte Global and the World Economic Forum.
Larger firms that use the data they generate through free services will have a distinct advantage in attracting new customers, as they use that data to offer differentiated products, single solutions and better value, Deloitte says.
AI has made the instant delivery of products and service deliver a basic consumer expectation. The report says traditional methods of using price, speed and access to attract new clients won’t work.
However, there will also be opportunities for smaller niche players, leading a bifurcated market structure, while mid-tier firms may disappear.
But Deloitte warns that companies which procrastinate over adapting to AI will suffer. The speed at which companies can implement AI will depend on how quickly they can transform their company talents. If they cannot, their competitive advantage will be at risk.
Profit margins will also narrow if organisations dither on how to differentiate their products, the report says.
Deloitte believes the safety of the financial system will be strengthened, because solutions built on shared data will increase accuracy, timeliness and performance of non-competitive functions.
But companies will be forced into uneasy alliances with potential competitors as they clamour for data to be widely available, and shared. Managing partnerships with potential competitors “will be critical but fraught with strategic and operational risks”.
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