The Balancing Act of Big Banks and AI: Navigating Innovation Wisely
In today’s fast-paced world, banks face a unique challenge when it comes to adopting artificial intelligence (AI). If they take too long to embrace this technology, they risk falling behind nimble startups ready to take big leaps. However, if they rush the process, they could end up damaging their reputation as responsible financial institutions. Striking a perfect balance is key.
Craig Corte, who heads digital and data platforms at Standard Chartered, believes that large banks can afford to be cautious. Speaking at the recent Fortune Brainstorm AI conference in Singapore, he mentioned, “I’m fine with being a ‘good follower’ in the AI space, especially given the potential consequences if a major bank makes a mistake.” Corte feels it’s better for big banks to let others test the waters of innovation first. According to him, being cautious is a smart approach.
Tianyi Zhang, the head of risk management and cybersecurity at Ant International, highlighted some significant risks associated with AI. First, AI can “hallucinate,” which means it might produce false information. Second, the interaction between different AI agents could open new avenues for cyberattacks. Lastly, there’s the concerning issue of deepfakes, where fake identities could be created for malicious purposes. Yet, Zhang acknowledges that AI simplifies many aspects of work, such as assisting financial investigators.
When it comes to banking customers, there’s a divide. Younger clients are more ready to use AI because of its quickness and transparency. Vivien Jong, the AI officer for Asia at BNP Paribas Wealth Management, pointed out that these clients often seek out AI to help with sustainability and technology investments. In contrast, older clients are more skeptical and see AI as just an assisting tool rather than something to fully rely on for investments.
The Tug of War: Big vs. Small Players in Banking AI
During a panel discussion, Corte and Zhang explored which kinds of institutions could benefit the most from AI: the large, established banks, or smaller, agile startups. Historically, big banks have been slow in adopting new tech, often to their detriment. However, they seem more eager this time around to leverage AI.
Corte reflected on past experiences, stating, “In previous digital revolutions, it was small companies that pushed big banks to digitize. But now, the roles have reversed.” Today, it’s the large banks, with considerable resources and customer bases, that are championing the AI initiative.
On the other hand, smaller startups often struggle with long timelines and paperwork needed to collaborate with these large banks. Jong shared her own experiences in working with such startups, highlighting that one lost out on payment and had to shut down. In one case, a startup was uncomfortable signing a lengthy, 60-page contract and proposed working for free instead—an example of how daunting the process can be for smaller players.
Looking at things from another angle, Zhang at Ant International pointed out that even small businesses, like a couple running an online shop from their apartment, can benefit from AI technologies. AI can provide solutions for automated payments, risk management, and dealing with foreign currencies. This way, small players receive the same advantages as larger corporations.
The Future: AgentFi and the Rise of AI in Finance
Michael Wu, CEO of Amber Group, is all-in on the potential of AI to revolutionize finance. His company is focusing on “AgentFi,” where AI will be able to make autonomous financial decisions. Wu clarifies that current AI agents don’t yet have the resources to act on their choices but believes that cryptocurrencies could provide them the financial freedom they need.
Amber has recently launched its first AI, named “Mia,” who serves as the company’s “AgentFi Ambassador.” Wu describes Mia as a bright, but still learning, intern who can manage token liquidity but struggles to communicate her financial decisions effectively. “Just like humans, AI has a learning curve,” he noted.
Looking forward, Wu is optimistic that many of the challenges faced by AI agents today will be tackled and resolved in the near future.
Conclusion
As big banks and startups navigate the world of AI, it’s clear that a balance between innovation and caution is crucial. While younger clients are ready to embrace this technology, older generations are taking a more conservative approach. The conversation continues about how different institutions can best utilize AI, highlighting that both big and small players have their unique strengths and challenges.
In the end, the journey of AI in banking is just beginning, and the future looks promising.
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Original Text – https://fortune.com/asia/2025/07/29/banks-ai-standard-chartered-bnp-paribas-ant-international-amber/