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Industry Landscape
The financial services industry is undergoing rapid digital transformation, driven by AI and automation. Stricter regulatory landscapes, coupled with consumer demand for seamless digital experiences, are pushing institutions to adopt advanced technologies. The focus is on leveraging AI for compliance, fraud detection, customer service, and operational efficiency, leading to significant investment in fintech solutions to maintain competitiveness and mitigate risks.
Total Assets Under Management (AUM)
Fintech Market Size in United States
~Approximately 128.5 billion USD (2023)
(15-20% (CAGR) CAGR)
• Driven by increasing digital adoption in banking and finance.
• Significant investment in AI, blockchain, and cloud technologies.
• Regulatory support and customer demand for innovative services.
Total Addressable Market
500 billion USD
Market Growth Stage
Pace of Market Growth
Emerging Technologies
Generative AI
Generative AI can create highly realistic synthetic data for training AI models, improve conversational AI agents for more natural customer interactions, and automate content creation for marketing and compliance.
Explainable AI (XAI)
XAI provides transparency into AI decision-making processes, crucial for regulatory compliance and building trust in financial institutions, especially for tasks like fraud detection and credit scoring.
Federated Learning
Federated Learning enables AI models to be trained on decentralized datasets across multiple financial institutions without sharing raw data, enhancing data privacy and security while improving model performance.
Impactful Policy Frameworks
CFPB Circular 2022-03: Unfair, Deceptive, or Abusive Acts or Practices (UDAAP) in the Use of Artificial Intelligence
This CFPB circular, issued in 2022, clarifies that existing UDAAP prohibitions apply to the use of artificial intelligence and complex algorithms by financial institutions, emphasizing risks of bias and discrimination.
This impacts Sei by reinforcing the need for their AI solutions to have robust ethical AI frameworks, ensuring unbiased and fair outcomes in customer interactions and decision-making processes.
FDIC Guidance on Third-Party Risk Management (2023)
The FDIC, along with other federal banking agencies, updated its guidance on managing risks associated with third-party relationships, including fintech partnerships and AI solution providers.
This policy increases the due diligence requirements for financial institutions when adopting third-party AI solutions like Sei, necessitating comprehensive risk assessments and ongoing monitoring.
Federal Reserve's 'Novel Activities' Supervision Framework (2023)
The Federal Reserve's 'Novel Activities' supervision framework, established in 2023, outlines a new approach to overseeing financial institutions engaged in crypto-asset activities, distributed ledger technology, and complex AI.
This framework encourages financial institutions to adopt innovative technologies while ensuring sound risk management, directly affecting how institutions can integrate advanced AI platforms like Sei.
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