Intelligent CIO Middle East Issue 40 - Page 46

CIO opinion CIO OPINION We can be ahead of the curve instead of looking backwards through the mirror of what happened yesterday or the week or quarter before in order to make a prediction about the future. Analytics isn’t only going to be one tool. It’s going to be multiple tools. Every central bank is struggling to have a consolidated view of all of their financial indexes in one place on one dashboard. The software market today is not mature enough to provide the central banks around the globe with the technology needed to do this. The importance of AI and Blockchain There is a huge amount of promise for AI in the financial sector especially for detecting fraud. AI will be the pinnacle of fraud investigation from now on. There is another side of AI for the financial sector which is empowering the consumer. Today in the market we are seeing this happening with something called Personal Finance Management. This will tell you how to better spend your money, how to better save your money and how to do whatever goal you are going to put into place. Today with AI and Personal Finance Management this information will be accessible for the masses whereas before it was only accessible for the high net-worth and done by face to face consultation. The explosion of FinTech in Kuwait We are seeing a lot of traction of FinTechs in Kuwait. Some of these became regional powers as they spread from Kuwait all the way to Oman, and some of them beyond the GCC. We also saw an influx of international investors investing in these newly established Fintechs. “ YOU NEED SOMEBODY IN THE ORGANISATION THAT CAN SPEAK THE BUSINESS LANGUAGE AS WELL AS THE IT LANGUAGE. The future of Blockchain in the financial sector This is a technology that is promising a lot but we would like to be very cautious. We would like to see how it is being implemented as the impact on the person using Blockchain is likely to be huge. Going forward FinTechs and the FinTech ecosystem is going to play a vital role in the economies of every country. Whatever is written in the block cannot be rewritten. If there was a mistake and a transaction needs to be reversed it cannot be reversed in Blockchain. A person’s credit history could be ruined for life. From our perspective as the Central Bank of Kuwait we want to see a healthy FinTech ecosystem running in Kuwait. So we are very cautious about this technology although we believe in it and we believe it will transform the banking sector 46 INTELLIGENTCIO but we have to be cautious to see how it will be implemented. The banking sector and young people There is a big disconnect from the expectations of young people and what the current financial systems are providing to them. They cannot comprehend why they need to go into a bank and take in a small piece of paper and sit down for half an hour to have somebody serve them. They are very ‘digital native’. They know how to use a computer. They know how to type. They have been feeding themselves and clothing themselves using their mobile. They have been communicating to their friends through digital means. This is not just a phenomenon in Kuwait. There is this huge disconnect globally. They want the same consumer grade of flexibility that they use to feed themselves, clothe themselves and do everything they need to do. They want the same thing to apply to their financials through their mobiles. Some of the smaller banks are more agile and more youth-orientated and they are gaining market share. Some of the bigger banks are a little bit slower attending to these needs and are maybe more conservative. n