Connect with us

Business

Big banks can ‘afford to be a little behind the curve’ on AI, and let smaller startups make riskier bets

Published

on


Banks are trying to navigate a tricky balance when it comes to AI adoption. Move too slow, and risk being overtaken by more nimble rivals—but move too fast, and one mishap could destroy one’s reputation as a responsible financial actor. 

Craig Corte, global head for digital, data and coverage platforms for corporate and investment banking at Standard Chartered, said he is fine if his employer decided to be a “good follower” on AI, given the risks involved if a major financial institution screws up.

“I don’t think we should be at the cutting edge of innovation around AI as a big bank. I think that’s a risky place to be, and there are a lot of other organizations and industries that can be there,” Corte said last week at the Fortune Brainstorm AI Singapore conference. “I think we can afford to be a little bit behind the curve.”

Tianyi Zhang, general manager of risk management and cybersecurity at Ant International, pointed to three risks posed by AI. (Ant International is a partner of Fortune Brainstorm AI Singapore.) The first is AI’s penchant to make things up, or “hallucinate.” The second is the possibility for different AI agents to work directly with each other, which opens up new avenues for external attacks. The third is deepfakes, including the possibility that fake customers are generated as an attack vector. 

Tianyi Zhang, general manager of risk management and cybersecurity at Ant International.

Fortune

Still, Zhang said AI was making parts of his job easier, offering up the example of how it can augment the skills of entry-level financial investigators. 

Banking customers are also thinking about whether to trust AI. Vivien Jong, chief digital and AI officer for Asia at BNP Paribas Wealth Management, noted that younger clients have embraced AI due to its speed and transparency. “They want to use AI to look for thematic investing around sustainability or tech,” she said. Older customers, however, are more cautious, seeing the new technology as a “support tool, and not something to be used for investing.”

Large vs. small

Corte and Zhang were part of a panel exploring how AI is set to transform the financial industry. One key question was what kind of institution might benefit most from AI: large established banks, or smaller scrappier startups? 

Larger established players have previously been slow to adopt new technologies—and often paid the price for their hesitation. But this time around, bigger companies are far more eager to adopt AI.

“For those of us that were around in the first digital revolution, it was a bunch of outsiders and small companies trying to convince the big incumbent players that they needed to digitize their businesses,” Corte said. 

But unlike previous instances of digital transformation, where larger established players struggled to keep up, bigger banks are more eager to adopt new technology this time around.

“For those of us that were around in the first digital revolution, it was a bunch of outsiders and small companies trying to convince the big incumbent players that they needed to digitize their businesses,” Corte said. “That is completely reversed today. The biggest players in the world with the most customers, with the biggest balance sheets, [they] are the ones driving the AI agenda.”

Smaller startups, meanwhile, can struggle with long-term horizons or lengthy documentation needed to work with a big bank. Jong, from BNP Paribas, shared her own struggles about working with smaller startups, including one that “went offline because it didn’t get paid for two weeks.” One hangup was the size of BNP’s contracts. Jong recounted that one startup was so uneasy about a 60-page master service agreement, it said it would rather work for free for six months. 

Vivien Jong, chief digital and AI officer for Asia at BNP Paribas Wealth Management.

Fortune

Zhang, from Ant, approached the conversation of size from a different vantage point: Ant’s customers.

“Some of our clients…are very small. They could be a couple, a husband and wife operating their online store in their one-bedroom apartment,” Zhang noted. Normally, such small customers would struggle to handle all the different risks that come with running a small business. But “with AI’s help, they can have access to all the new technology, new tools to deal with automated payments. They can deal with dispute solutions, risk management solutions, and they can collect money from different currencies and deal with foreign exchange volatility,” he said. 

AgentFi

Michael Wu, CEO of crypto firm Amber Group and a speaker on last week’s panel, is all-in on how AI can shake up the financial sector. Amber is now pursuing “AgentFi,” or finance driven by AI agents that can autonomously make their own decisions. (Disclosure: Fortune’s owner, Chatchaval Jiaravanon, is an investor in Amber Group)

Wu noted that AI agents currently don’t have the financial resources to carry out the actions they decide to take. “An agent cannot have the autonomy to say ‘hey, I want to spend this amount of money, or I want to invest in this versus that,” he said.

Michael Wu, CEO of Amber Group.

Fortune

Crypto, Wu argued, will give AI agents “financial freedom,” and give them the resources to put behind their decisions. “They could even hire humans back to do what they want,” he suggested. 

Amber launched its first “agent,” an AI dubbed “Mia,” to serve as the group’s “AgentFi Ambassador” in May. “My best analogy is [that Mia is] a very bright, young, super intern,” Wu said. “She can do some things amazingly. She still makes a lot of mistakes, and sometimes she behaves very dumb, to be upfront.”

Wu’s engineers gave Mia the ability to manage the liquidity of its own token. Yet, Wu noted the agent struggled to describe what financial actions it was taking on social media. “It happens to humans too, right? Sometimes we learn a new thing very quickly, and our left or right brain…doesn’t realize what the other half is doing.” 

“Hopefully, this time next year, a lot of these engineering problems will be spotted, identified and potentially solved by these agents themselves,” he added. 



Source link

Continue Reading

Business

Hero bystander who tackled Bondi gunman praised by Trump, Ackman

Published

on



A bystander who rushed and disarmed one of the Bondi Beach attackers has won praise from leaders around the world, including US President Donald Trump and hedge fund billionaire Bill Ackman, who announced a reward program for community heroes.

Extraordinary footage of the civilian’s actions began circulating on social media on Sunday, shortly after two men, later identified as a father and son, started shooting into a crowd gathered to celebrate the first day of Hanukkah. The massacre has left at least 16 people dead in the worst terrorist attack in Australia’s history. 

Read More: Sixteen People Killed in Bondi Beach Hanukkah Terror Attack 

In the mobile-phone video, which has not been verified by Bloomberg News, one of the attackers is standing near a tree and firing. A few meters away, a crouched man emerges from behind a parked car. He grabs the shooter from behind and wrestles the weapon from his hands. Local media named the bystander as Ahmed el Ahmed, a 43-year-old father-of-two from south Sydney. He was shot twice and is being treated in the hospital, according to reports.

He was also soon lauded for his feat. Trump said at the White House that Ahmed had saved many lives and expressed “great respect” for him. In Sydney, New South Wales Premier Chris Minns went further, describing Ahmed’s wrestle with the shooter as “the most unbelievable scene I’ve ever seen.”

“That man is a genuine hero and I’ve got no doubt there are many, many people alive tonight as a result of his bravery,” Minns said at a press conference late Sunday.

Australian Prime Minister Anthony Albanese also praised Ahmed, and other bystanders who helped treat victims in the immediate aftermath of the shooting. 

“People rushing towards danger to show the best of the Australian character,” Albanese told reporters Monday. “That’s who we are, people who stand up for our values.” 

Pershing Square Capital Management’s founder Ackman called Ahmed  “a brave hero” and said his hedge fund firm would establish a reward program for people who had carried out similar acts.

The top donor to a gofundme page set up for the “hero” who tackled the shooter is listed as William Ackman, who gave $99,999. More than $170,000 has been raised so far. 

Salesforce Inc. Founder and Chief Executive Officer Marc Benioff also expressed his gratitude for Ahmed in a post on X.



Source link

Continue Reading

Business

A ‘new era’ in the housing market is about to begin as affordability finally improves

Published

on



Next year should mark a shift in the housing market after years of largely being frozen in place, according to Mike Simonsen, chief economist at top residential real estate brokerage Compass.

Home sales flatlined amid unaffordable conditions after rising demand collided with tepid supply growth, pushing up home prices. Would-be buyers became so discouraged that demand cooled and remains slow.

Prices are now becoming more favorable for house hunters, a trend that should continue in 2026 and change the narrative in the housing market.

“In the next era, that story flips. So sales are starting to move higher, but prices are capped or maybe down. Incomes are rising faster than prices, and so affordability improves for the first time in a bunch of years,” Simonsen told CNBC on Friday. “It’s not a dramatic improvement, but it’s the start of the new era.” 

His view echoes a recent report from Redfin, which also cited stronger income and weaker homes prices as it predicted a “Great Housing Reset” in 2026.

In addition to potential buyers giving up on finding an affordable home, sellers have been giving up on finding someone willing to buy at the price they want.

As a result, the number of homes that were withdrawn from the market jumped this year. In June, these so-called delistings shot up 47% from a year earlier.

Simonsen said listing withdrawals tend to be owner-occupied homes, meaning they could be latent demand as well as supply. That’s because two transactions would be needed: owners want to buy a new home but must sell their current one.

“In an environment where conditions improve a little bit, we actually estimate that that’s a representation of shadow demand—people that want to move, people that have delayed moves for maybe four years now,” he said, adding that there are about 150,000 such homeowners.

His housing market outlook for a new era of improving affordability doesn’t depend on a steep drop in mortgage rates. In fact, a plunge might spur so much demand that prices would overheat.

Simonsen expects rates to stay in the low-6% range, allowing sales to grow while also keeping home prices in check as more inventory comes on the market.

The price environment is already showing auspicious signs for prospective buyers. More than half of U.S. homes have dropped in value over the last year, but homeowners can still sell with a net gain as values are up a median 67% since their home’s last sale, accordion to data from Zillow.

And a separate report fromZillow found that homebuyers are getting record-high discounts. While the typical individual discount remains $10,000, desperate sellers are increasingly offering multiple reductions as muted demand leaves homes on the market for longer. As a result, the cumulative price cut in October hit $25,000.

“Most homeowners have seen their home values soar over the past several years, which gives them the flexibility for a price cut or two while still walking away with a profit,” Zillow Senior Economist Kara Ng said in a statement last month. “These discounts are bringing more listings in line with buyers’ budgets, and helping fuel the most active fall housing market in three years. Patient buyers are reaping the rewards as the market continues to rebalance.”



Source link

Continue Reading

Business

Attacker who killed US troops in Syria was a recent recruit to security forces

Published

on



A man who carried out an attack in Syria that killed three U.S. citizens had joined Syria’s internal security forces as a base security guard two months earlier and was recently reassigned amid suspicions that he might be affiliated with the Islamic State group, a Syrian official told The Associated Press Sunday.

The attack Saturday in the Syrian desert near the historic city of Palmyra killed two U.S. service members and one American civilian and wounded three others. It also wounded three members of the Syrian security forces who clashed with the gunman, interior ministry spokesperson Nour al-Din al-Baba said.

Al-Baba said that Syria’s new authorities had faced shortages in security personnel and had to recruit rapidly after the unexpected success of a rebel offensive last year that intended to capture the northern city of Aleppo but ended up overthrowing the government of former President Bashar Assad.

“We were shocked that in 11 days we took all of Syria and that put a huge responsibility in front of us from the security and administration sides,” he said.

The attacker was among 5,000 members who recently joined a new division in the internal security forces formed in the desert region known as the Badiya, one of the places where remnants of the Islamic State extremist group have remained active.

Attacker had raised suspicions

Al-Baba said the internal security forces’ leadership had recently become suspicious that there was an infiltrator leaking information to IS and began evaluating all members in the Badiya area.

The probe raised suspicions last week about the man who later carried out the attack, but officials decided to continue monitoring him for a few days to try to determine if he was an active member of IS and to identify the network he was communicating with if so, al-Baba said. He did not name the attacker.

At the same time, as a “precautionary measure,” he said, the man was reassigned to guard equipment at the base at a location where he would be farther from the leadership and from any patrols by U.S.-led coalition forces.

On Saturday, the man stormed a meeting between U.S. and Syrian security officials who were having lunch together and opened fire after clashing with Syrian guards, al-Baba said. The attacker was shot and killed at the scene.

Al-Baba acknowledged that the incident was “a major security breach” but said that in the year since Assad’s fall “there have been many more successes than failures” by security forces.

In the wake of the shooting, he said, the Syrian army and internal security forces “launched wide-ranging sweeps of the Badiya region” and broke up a number of alleged IS cells. The interior ministry said in a statement later that five suspects were arrested in the city of Palmyra.

A delicate partnership

The incident comes at a delicate time as the U.S. military is expanding its cooperation with Syrian security forces.

The U.S. has had forces on the ground in Syria for over a decade, with a stated mission of fighting IS, with about 900 troops present there today.

Before Assad’s ouster, Washington had no diplomatic relations with Damascus and the U.S. military did not work directly with the Syrian army. Its main partner at the time was the Kurdish-led Syrian Democratic Forces in the country’s northeast.

That has changed over the past year. Ties have warmed between the administrations of U.S. President Donald Trump and Syrian interim President Ahmad al-Sharaa, the former leader of an Islamist insurgent group Hayat Tahrir al-Sham that used to be listed by Washington as a terrorist organization.

In November, al-Sharaa became the first Syrian president to visit Washington since the country’s independence in 1946. During his visit, Syria announced its entry into the global coalition against the Islamic State, joining 89 other countries that have committed to combating the group.

U.S. officials have vowed retaliation against IS for the attack but have not publicly commented on the fact that the shooter was a member of the Syrian security forces.

Critics of the new Syrian authorities have pointed to Saturday’s attack as evidence that the security forces are deeply infiltrated by IS and are an unreliable partner.

Mouaz Moustafa, executive director of the Syrian Emergency Task Force, an advocacy group that seeks to build closer relations between Washington and Damascus, said that is unfair.

Despite both having Islamist roots, HTS and IS were enemies and often clashed over the past decade.

Among former members of HTS and allied groups, Moustafa, said, “It’s a fact that even those who carry the most fundamentalist of beliefs, the most conservative within the fighters, have a vehement hatred of ISIS.”

“The coalition between the United States and Syria is the most important partnership in the global fight against ISIS because only Syria has the expertise and experience to deal with this,” he said.

Later Sunday, Syria’s state-run news agency SANA reported that four members of the internal security forces were killed and a fifth was wounded after gunmen opened fire on them in the city of Maarat al-Numan in Idlib province.

It was not immediately clear who the gunmen were or whether the attack was linked to the Saturday’s shooting.



Source link

Continue Reading

Trending

Copyright © Miami Select.