Afternoon Coffee: Fintechs to outpace banks in AI development; TikTok talks slowed by China; SIG webinar targets nearshoring, automation

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Experts say fintech and big technology companies could outpace traditional banks in the development of artificial intelligence tools to personalize services, evaluate credit risk and handle other financial matters, according to the Wall Street Journal.

Fintechs may not face the internal red tape that a traditional bank would to develop and test these AI tools. Companies like Square Inc. and PayPal Holdings Inc. have digitized functions like payment and lending for years. Fintech firms tout a digital-first approach and willingness to consider alternative data. Larger tech companies are shifting into areas typically led by traditional banks. According to the article, banks are still working on AI development though.

“The larger institutions actually have a lot of initiatives underway,” data scientist Javed Ahmed told the Wall Street Journal. He added that AI increasingly is being tapped to better personalize customer experiences, such as offering services, information and advice catered to individual customers. He also said banks are using it for risk-and-compliance tasks, such as anti-money-laundering (AML) and politically exposed persons screening.

Read more of our payments coverage to understand the trends popping up in procurement today.

TikTok deal slow after China adds limits

The race for TikTok to make a deal with a U.S. company has been thrown off track as the parties weighed new Chinese restrictions that appear designed to affect a potential sale, according to the Wall Street Journal.

On Friday, China issued restrictions on the export of artificial intelligence technology, forcing ByteDance — TikTok’s parent company — to slow talks with possible buyers like Microsoft, Walmart and Oracle to buy a portion of the U.S. operations. The Trump administration set a mid-September deadline for ByteDance to sell American operations, according to the article.

“We are studying the new regulations that were released Friday,” ByteDance General Counsel Erich Andersen said. “As with any cross-border transaction, we will follow the applicable laws, which in this case include those of the U.S. and China.”

However, some other news organizations reported Monday that TikTok had chosen a bidder for the deal and could make a formal announcement as soon as Tuesday, according to CNBC.

SIG to host a webinar discussing nearshore delivery, automation

The procurement pros at SIG are hosting a webinar this week discussing the unique topic of nearshore delivery and the benefits of automation that extend beyond direct cost savings.

With COVID-19 exposing the fragility of global supply chains, many companies have been transitioning from outsourcing across the globe to nearshore locations. The Sourcing Industry Group's webinar will be free to attend at 1 p.m. Eastern on Thursday, Sept. 3.

Dextra Technologies CEO Daniel Chavez will be a part of the webinar discussing how nearshore delivery can help you extend automation capabilities and help companies be more agile and flexible to changes in the market.

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