AI in Finance: Artificial intelligence (AI) spending across hardware, software, and services totaled about $200 billion last year, according to Grand View Research. But that figure is expected to soar 820% to exceed $1.8 trillion by 2030. In other words, the AI market is forecast to compound at 37% annually through the end of the decade.
Over the last 10 years, fintech has evolved from a niche and elusive industry trend into a transformative force in the global financial landscape. Initially associated with small startup ventures, fintech today includes multibillion-dollar enterprises. Pinning down a precise definition of fintech proves challenging because of the segmentation within the industry. Online and mobile banking, digital payments, cryptocurrency and blockchain, insurtech, wealthtech, artificial intelligence, all classified as fintech as they combine innovation in the financial industry with technology.
Fintech is often associated with small startup ventures, but it is important to note that the list of fintech unicorns – startups valued at over one billion U.S. dollars – numbers in the hundreds. The United States and China are home to eight of the 10 largest fintech companies worldwide.
Asia’s economic influence, especially in the Emerging Asia region, has grown significantly over the years. Excluding Japan, the region now accounts for about 36% of the global Gross Domestic Product (GDP), a substantial increase from around 10% in 1980. Notably, China has emerged as the world’s second-largest economy and financial market, trailing only the United States. This expansion underscores Asia’s rising prominence in the global economic landscape.
Asia’s economic growth has outpaced that of other regions, with the region contributing approximately half of the world’s growth in the previous year. The dynamism of Asian economies plays a pivotal role in driving global economic expansion, highlighting the region’s growing importance on the world stage.
The nature of growth in Asia is evolving, with a greater emphasis on domestic and regional sources of economic expansion. While exports remain crucial, Asian economies are increasingly relying on supply-chain integration, intra-regional trade, and the development of financial markets to fuel growth.
In response to the rapid economic development, equity markets in Asia have thrived, now commanding nearly 40% of global market capitalization. Emerging Asia, in particular, has experienced remarkable growth in its equity markets, reflecting the region’s economic progress and attractiveness to investors.
The development of local currency bond markets has been a significant milestone for the region. These markets have expanded the range of investible assets available, while also promoting stability by reducing currency mismatches that previously plagued Asian economies during the Asian Financial Crisis in the late 1990s. This development underscores Asia’s commitment to strengthening its financial infrastructure and enhancing its resilience to external shocks.
The landmark partnership between ETT | iByond™ and Knightsbridge Group marks a significant milestone in advancing digital innovation and fintech solutions globally, it is also the 1st USA/Asia Joint Venture in the space.
The collaboration, valued at an impressive $1.2 billion, signifies a convergence of cutting-edge technologies aimed at driving innovation and transformation across industries. Leveraging ETT | iByond™’s expertise in the burgeoning AI landscape and Knightsbridge’s global network and resources, the joint venture aims to deliver unparalleled solutions tailored to meet the evolving needs of businesses and consumers worldwide.
AI in Finance
| Company Name | Stock Ticker | Market Cap (in billions USD) |
|---|---|---|
| NVIDIA Corporation | NVDA | $815.62 |
| Alphabet Inc. | GOOGL | $1,829.81 |
| Microsoft Corporation | MSFT | $2,592.06 |
| International Business Machines Corporation | IBM | $108.09 |
| Amazon.com, Inc. | AMZN | $1,600.67 |
| Intel Corporation | INTC | $217.36 |
| Salesforce.com, Inc. | CRM | $277.95 |
| Baidu, Inc. | BIDU | $56.72 |
| Twitter, Inc. | TWTR | $27.89 |
| Twilio Inc. | TWLO | $68.72 |
Under the agreement, ETT | iByond™’s Asia Division has executed a five-year software services and licensing agreement with Knightsbridge, valued at $683 million to ETT and over $500 million to Knightsbridge. This partnership seeks to revolutionize the financial services industry and AI in Finance through cutting-edge digital transformation solutions.
By harnessing ETT’s state-of-the-art data management and AI infrastructure alongside Knightsbridge Group’s advanced market technologies, the joint venture will deliver a comprehensive fintech platform. This platform promises unparalleled efficiency, security, and scalability, empowering financial institutions to streamline operations, enhance customer experiences, and drive sustainable growth in today’s dynamic marketplace.
The collaboration represents a significant stride in Knightsbridge’s expansion strategy and underscores its commitment to driving growth in the region. The rapid growth of AI and fintech in Asia is reshaping the region’s economic landscape, with advancements in technology fueling innovation and investment across sectors.
The expansion of Knightsbridge Group into Hong Kong and China presents a significant opportunity for the ETT Knightsbridge Joint Venture to capitalize on the growing demand for financial technology (fintech) solutions in these key markets. As Knightsbridge extends its presence into these regions, the joint venture stands to benefit from access to a broader customer base, increased market visibility, and enhanced business opportunities.
With its established network and expertise in the fintech sector, Knightsbridge Group’s expansion into Hong Kong and China provides the ETT Knightsbridge Joint Venture with a strategic foothold in two of Asia’s most dynamic and rapidly growing economies. These markets offer immense potential for fintech adoption, driven by factors such as rising internet penetration, increasing smartphone usage, and a growing demand for digital financial services.
By leveraging Knightsbridge Group’s local market knowledge and established relationships in Hong Kong and China, the joint venture can effectively navigate regulatory requirements, cultural nuances, and business practices unique to these regions. This local expertise will be instrumental in tailoring fintech solutions to meet the specific needs and preferences of customers in Hong Kong and China, ultimately enhancing the joint venture’s competitiveness and relevance in these markets.
Knightsbridge Group’s expansion into Hong Kong and China signals its commitment to fostering innovation and driving digital transformation in the financial sector. This aligns with the goals of the ETT Knightsbridge Joint Venture, which aims to harness cutting-edge technologies, such as artificial intelligence (AI) and data analytics, to deliver innovative fintech solutions to businesses and consumers worldwide.
The ETT Knightsbridge Joint Venture represents a groundbreaking collaboration poised to drive AI-fueled transformation in finance, revolutionizing the industry and empowering businesses across Asia and beyond.
