JP Morgan, Capital One and Wells Fargo. US banks lead the AI race in the banking sector
US banks dominate AI transformation race, according to recent report by banking data provider Evident
North American banks are winning the global race to transform banking into an AI-powered industry.
That's according to a new report from banking data provider Evident, picked up by Axios .
Banking sector investment in early-stage AI companies is dominated by five US banks. JP Morgan Chase is a leader in AI research, Capital One in AI patents and Wells Fargo in AI investments. Other top performers include Royal Bank of Canada, TD Bank, Goldman Sachs and First Citizens (successor to Silicon Valley Bank).
As Axios points out, AI research, patents and partnerships can help a bank distinguish itself with new products and processes. In fact, major lenders are using artificial intelligence to be more competitive in markets such as trading and high-frequency payments and to improve performance in fields ranging from fraud detection to marketing.
But a gap is developing here: Banks and smaller fintech competitors that lack an AI-driven innovation strategy are losing ground to the big banks' competitors.
All the details.
WHY AI IS KEY IN BANKING
“AI is critical for banks to gain and maintain a competitive edge, and our research shows that North American banks continue to outperform their European counterparts,” said Alexandra Mousavizadeh, co-founder and CEO of Evident.
“Pushing the various levers of AI innovation not only helps drive efficiencies in day-to-day banking operations, but offers a roadmap for the future of the industry and an opportunity to radically reimagine what it means to be a bank. Fundamentally, this competitive advantage is likely to be self-sustaining – a major problem for all banks today that are too far behind in the race for AI innovation,” Mousavizadeh highlighted.
US BANKS LEAD THE AI RACE IN THEIR INDUSTRY
According to Evident's research, the same names consistently appear: JPMorgan Chase, Capital One, Wells Fargo alongside RBC (and in some cases TD Bank) when it comes to lenders and AI.
Specifically, North American banks published 80% of all banking AI research and made 60% of all banking AI-related investments in 2022, filing 99% of all banking-related patents. 'AI in 2021. Many banks have developed AI labs or, in the case of BBVA, an 'AI factory'.
But the report's authors say just six banks, all in the United States or Canada, are strategically pursuing patent registration, even in unexpected areas like marketing.
WHAT'S HAPPENING IN EUROPE AND CHINA?
Thus, major US banks have a large lead over global competitors, although it is narrowing in some areas.
According to Evident's report, European banks are best placed on early-stage investments in AI companies, with six of the top 10 pre-seed and seed investors coming from Europe.
However, US lenders as a group have published more AI research and papers than banks in other regions. Though China-based Ant Financial surpassed JP Morgan Chase as the financial institution that publishes the most research.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/jp-morgan-capital-one-e-wells-fargo-le-banche-americane-guidano-la-corsa-allia-nel-settore-bancario/ on Sun, 20 Aug 2023 05:42:25 +0000.