Transforming Paradigms: A Global AI in Financial Services Survey

128 Pages Posted: 18 Mar 2020

See all articles by Lukas Ryll

Lukas Ryll

University of Cambridge - Department of Engineering; University of Cambridge - Cambridge Centre for Alternative Finance

Mary Emma Barton

affiliation not provided to SSRN

Bryan Zheng Zhang

Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge

R. Jesse McWaters

affiliation not provided to SSRN

Emmanuel Schizas

University of Cambridge - Cambridge Centre for Alternative Finance

Rui Hao

affiliation not provided to SSRN

Keith Bear

University of Cambridge - Judge Business School

Massimo Preziuso

affiliation not provided to SSRN

Elizabeth Seger

affiliation not provided to SSRN

Robert Wardrop

University of Cambridge - Cambridge Centre for Alternative Finance

P. Raghavendra Rau

University of Cambridge

Pradeep Debata

Open University, UK; University of Cambridge

Philip Rowan

affiliation not provided to SSRN

Nicola Adams

affiliation not provided to SSRN

Mia Gray

University of Cambridge - Cambridge Centre for Alternative Finance

Nikos Yerolemou

University of Cambridge - Cambridge Centre for Alternative Finance

Date Written: February 4, 2020

Abstract

This report presents the findings of a global survey on AI in Financial Services jointly conducted by the Cambridge Centre for Alternative Finance (CCAF) at the University of Cambridge Judge Business School and the World Economic Forum in Q2-Q3 2019. Representing one of the largest global empirical studies on AI in Financial Services, a total of 151 respondents from 33 countries participated in the survey, including both FinTechs (54% of the sample) and incumbent financial institutions (46% of the sample). The study was supported by EY and Invesco. The study’s objective was to analyse and understand the current state of AI adoption in Financial Services, as well as its subsequent implications. This was done through the comparative analysis of empirical data collected via a web-based questionnaire.

This research provides a comprehensive picture of how AI is currently being applied in Financial Services by both FinTechs and Incumbents; driving different business models; underpinning new products and services; and playing a strategic role in digital transformation. The findings also reveal how financial service providers across the globe are meeting the challenges of AI adoption with its emerging risks and regulatory implications, as well as the impact of AI on the competitive landscape and employment levels.

The overarching findings of the study suggest that AI is expected to transform a number of different paradigms within the Financial Services industry. These anticipated changes include how data is utilised to generate more actionable insights; business model innovation (e.g., selling AI as a service); changes to the competitive environment with the entrance of ‘Big Tech’ and consolidation; various impacts on jobs and regulation; impacts on risks and biases; and the further development and adoption of game-changing technologies.

Keywords: Artificial Intelligence, Financial Services, FinTech

JEL Classification: G00, G20, G21, G23, G28, M13, M15, O10, O30, O31, O32, O33, O38, Y10, Y20

Suggested Citation

Ryll, Lukas and Barton, Mary Emma and Zhang, Bryan Zheng and McWaters, R. Jesse and Schizas, Emmanuel and Hao, Rui and Bear, Keith and Preziuso, Massimo and Seger, Elizabeth and Wardrop, Robert and Rau, P. Raghavendra and Debata, Pradeep and Rowan, Philip and Adams, Nicola and Gray, Mia and Yerolemou, Nikos, Transforming Paradigms: A Global AI in Financial Services Survey (February 4, 2020). Available at SSRN: https://ssrn.com/abstract=3532038 or http://dx.doi.org/10.2139/ssrn.3532038

Lukas Ryll (Contact Author)

University of Cambridge - Department of Engineering ( email )

Cambridge
United Kingdom

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Mary Emma Barton

affiliation not provided to SSRN

Bryan Zheng Zhang

Cambridge Centre for Alternative Finance, Cambridge Judge Business School, University of Cambridge ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

HOME PAGE: http://www.jbs.cam.ac.uk/ccaf

R. Jesse McWaters

affiliation not provided to SSRN

Emmanuel Schizas

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Rui Hao

affiliation not provided to SSRN

Keith Bear

University of Cambridge - Judge Business School ( email )

Trumpington Street
Cambridge, CB2 1AG
United Kingdom

Massimo Preziuso

affiliation not provided to SSRN

Elizabeth Seger

affiliation not provided to SSRN

Robert Wardrop

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

P. Raghavendra Rau

University of Cambridge ( email )

Cambridge Judge Business School
Trumpington Street
Cambridge, Cambridgeshire CB21AG
United Kingdom
3103626793 (Phone)

HOME PAGE: http://www.raghurau.com/

Pradeep Debata

Open University, UK ( email )

Walton Hall
Milton Keynes, Buckinghamshire MK7 6AA
United Kingdom

University of Cambridge ( email )

Trinity Ln
Cambridge, CB2 1TN
United Kingdom

Philip Rowan

affiliation not provided to SSRN

Nicola Adams

affiliation not provided to SSRN

Mia Gray

University of Cambridge - Cambridge Centre for Alternative Finance

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Nikos Yerolemou

University of Cambridge - Cambridge Centre for Alternative Finance ( email )

10 Trumpington Street
Cambridge, CB21QA
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
117
Abstract Views
393
rank
253,711
PlumX Metrics