MIND emerges from stealth with $11m to transform data security landscape

October 31, 2024

MIND has emerged from stealth alongside the unveiling of its cutting-edge platform designed to protect the most sensitive data within organizations.

FinTech News

Global FinTech investments projected to halve in 2024 as investors scale back

October 31, 2024

Global FinTech investments projected to halve in 2024 amid market caution

Key Global FinTech investment stats in Q3 2024: Global FinTech deal activity dropped by 57% YoY FinTech investments projected to halve in 2024 as investors grow cautious due to challenging economic conditions Fourcore Capital, a rising leader in AI-powered asset and wealth management, secured one of the biggest deals in Q3 with a $500m funding round In the third quarter...

Company News

Databento secures $10m investment to fuel global expansion in market data

October 31, 2024

Databento, an emergent leader in the market data industry, has successfully secured an additional $10m in funding.

Company News

BondBloxx secures $27m to bolster fixed income ETF offerings

October 31, 2024

BondBloxx Investment Management Corporation, a Larkspur, CA-based provider of bond ETFs, has successfully raised $27m in funding.

Compliance Management

The governance gap: AI risks unchecked in financial services

October 30, 2024

Financial services companies are rushing to integrate artificial intelligence (AI) into their operations, but many are doing so without adequate governance frameworks or testing procedures.

B2B Payments

Israeli FinTech Melio secures $150m led by US company Fiserv

October 30, 2024

Financial Services Firms Lag in AI Governance and Compliance Readiness, Survey Reveals Limited Testing and Formal Governance Creates Compliance and InfoSec Risks for Firms Adopting AI Despite eagerness to leverage artificial intelligence, financial services firms lack formal artificial intelligence (AI) governance frameworks, testing protocols, and third-party oversight, according to the 2024 AI Benchmarking Survey, a joint project of ACA Group’s ACA Aponix and the National Society of Compliance Professionals (NSCP), released today at the NSCP National Conference. The joint survey, conducted online in June and July 2024, gathered data from over 200 compliance leaders in the financial services industry around their firm’s use of AI tools and technologies, as well as compliance practices used to manage the risks AI tools and technologies present. According to the survey, firms are missing opportunities to better manage AI risks. It found that only 32% of respondents have established an AI committee or governance group, only 12% of those using AI have adopted an AI risk management framework, and just 18% have established a formal testing program for AI tools. Furthermore, most respondents (92%) have yet to adopt policies and procedures to govern AI use by third parties or service providers, leaving firms vulnerable to cybersecurity, privacy, and operational risks across their third-party networks. “We’re seeing widespread interest in using AI across the financial sector, yet there’s a clear disconnect when it comes to establishing the necessary safeguards,” said Lisa Crossley, Executive Director, NSCP. “Our survey shows that while many firms recognize the potential of AI, they lack the frameworks to manage it responsibly. This gap not only exposes firms to regulatory scrutiny, but also underscores the importance of building robust AI governance protocols as usage continues to grow.” Other notable findings include: 75% of respondents are exploring AI or using it internally, with 37% of firms reporting already having adopted AI tools for internal use and 38% currently exploring AI use cases. The most common use cases for AI were research, marketing, compliance and risk management, and operations support. Among respondents already using AI, 52% indicated they use public enterprise generative AI tools (such as ChatGPT), 50% reported using private/enterprise generative AI, and 43% are using machine learning. Compliance professionals reported that their primary goal for AI use in the compliance program is to improve efficiency (67%). Yet, as 68% of compliance professionals at firms who have already adopted AI tools reported that AI tools have had “no impact” on their compliance program, this goal has gone unrealized. Cybersecurity or privacy concerns around AI tools were identified as the top concern when integrating AI tools into compliance programs (45%). This was followed by uncertainty around regulations or regulatory examinations (42%), lack of talent with AI expertise (28%), and lack of tools that meet compliance programs’ needs (20%) as challenges to AI adoption. “The survey’s most concerning finding is the lack of policies governing third-party AI use,” said Carlo di Florio, President at ACA Group. “Regulators are heavily emphasizing third-party risk management, as we saw with the SEC’s Reg S-P updates, the SEC Cyber Rule, and the EU’s Digital Operational Resilience Act. ACA is actively helping clients build robust AI governance frameworks that align with regulatory demands, ensuring compliance and improving program efficiency. Without these measures, leveraging AI’s potential while remaining compliant will be challenging.” The full results of the 2024 AI Benchmarking Survey will be released during ACA’s and NSCP’s webcast on November 7, 2024. For more information, click here. About the Survey Respondents Governance, compliance, and risk professionals, including chief compliance officers, chief legal officers, and chief information security officers, at over 215 financial services firms of various size and RAUM (regulatory assets under management) participated in the survey. 40% of respondents were from firms with between 11 – 50 employees, with 42% managing between $1 billion to $10 billion in RAUM. Asset managers accounted for 43% of total respondents, with private market firms, alternative investment advisors, the second and third most common types of firms respectively.

Melio, an Israeli payments platform, has successfully raised $150m in a funding round spearheaded by the strategic US investor Fiserv. The financing, which values Melio at $2bn, comes as a resurgence following layoffs and a failed sale, according to a report from Globes. Melio's last capital influx in 2021 valued it at $4bn. Despite a reduction in valuation, which is a...

Company News

How can RegTechs improve the overall security of in-house AI?

October 30, 2024

The vast and breakneck expansion of in-house AI solutions is leading to many companies scrambling to ensure such solutions are complaint and strongly secure. What role can RegTech play in this challenge? According to Joseph Ibitola, growth manager at Flagright, as AI becomes more entrenched in financial institutions – especially in-house AI solutions tailored to specific business needs –...

FinTech News

Finfra secures $2.5m to boost embedded lending for Indonesian SMEs

October 30, 2024

Finfra, an Indonesian lending-as-a-service infrastructure provider, has successfully secured $2.5m in a funding round led by Cento Ventures.

FinTech News

Oportun secures $235m in new financing to bolster capital structure and profitability

October 30, 2024

Oportun, a mission-driven financial services company, has taken a significant step towards optimizing its capital structure to drive enhanced profitability.

FinTech News

PowerPay secures $60m in corporate bond funding to accelerate FinTech growth

October 30, 2024

PowerPay, a leader in digital point-of-sale lending for home improvement and patient financing, has successfully secured a $60m investment through a corporate bond issuance.