New documents submitted to state regulators for license applications are shedding light on how Elon Musk plans to make his X app into a payment platform that competes with services like Venmo and PayPal. Plans include letting users store money within their X accounts that can then be applied to purchases — including in physical stores — or issuing payment to other individuals or businesses. The filings come as X seeks to expand its revenue pool beyond advertising, which had in its Twitter days accounted for as much as 90 percent of sales. Ad income is said to have fallen below that threshold since Musk purchased the company in October 2022. Continue reading Musk Takes Next Step Toward Making X an ‘Everything App’

Apple, which has identified financial services as a growth area, has experienced delays in rolling out such products, including Apple Pay Later, a “buy now, pay later” (BNPL) service announced in June 2022 and initially scheduled to launch in September. The service reportedly began rolling out in a beta test among Apple’s retail employees this month and could be available to consumers by March or April this year, according to recent reports. A proposed high-yield savings account tied to the Apple Card and Wallet app was unveiled in October but has yet to release. Continue reading Apple Pushing Forward into Financial Services Despite Delay

As part of an overhaul of its AI ethics policies, Microsoft is retiring from the public sphere several AI-powered facial analysis tools, including a controversial algorithm that purports to identify a subject’s emotion from images. Other features Microsoft will excise for new users this week and phase out for existing users within a year include those that claim the ability to identify gender and age. Advocacy groups and academics have expressed concern regarding such facial analysis features, characterizing them as unreliable and invasive as well as subject to bias. Continue reading Microsoft Pulls AI Analysis Tool Azure Face from Public Use

Apple is exploring various financial technologies for future products that would reduce the company’s reliance on third-party products over time, reports say. Payment processing, lender risk assessment, consumer credit reports, dispute mediation and fraud analysis are among the areas Apple is looking into, according to those who claim knowledge of the situation. The move would build Apple’s profile in a category that currently includes Apple Wallet, branded credit cards, peer-to-peer payments and a merchant app involving iPhones. As previously reported, Apple is also working a subscription hardware model and further enhancements to Apple Pay. Continue reading Apple Explores Greater Role in Consumer Financial Services

Nasdaq says it will in 2022 begin migrating its North American markets to Amazon Web Services in a phased approach starting with the Nasdaq MRX U.S. options market. Nasdaq AWS will use a new edge computing solution the companies designed for market infrastructure that will be made available to other entities as well as leveraged across Nasdaq’s anti-financial crime, data and analytics, and market infrastructure software programs. The announcement was issued the same day Goldman Sachs said it was teaming with AWS on a suite of cloud-based solutions for financial institutions. Continue reading Nasdaq, Goldman Sachs Announce Migration to AWS Cloud

Google has purchased $1 billion of CME Group’s stock in a deal that will move the financial giant’s core trading systems to the Google Cloud. This 10-year partnership is all but guaranteed to boost Google Cloud’s bottom line, as well as improve its fourth-place market share. Google Finance calls Chicago-based CME “the world’s largest financial derivatives exchange,” trading in asset classes that span agricultural, currencies, energy, stock indexes, cryptocurrencies and more. However, the financial-services sector has lagged behind other industries when it comes to moving to the cloud, partly due to regulatory oversight and security concerns regarding client data. Continue reading Google Cloud Lands Exchange Giant CME in $1B Equity Deal

As data moves to the cloud, security has become increasingly important. Fully homomorphic encryption (FHE) has been developed in labs and is nearly ready to emerge to enable artificial intelligence and machine learning use cases for that data. Microsoft and Intel have been proponents of homomorphic encryption, which follows the data across systems. In December, IBM released its first FHE services, which include educational materials, prototyping environments for companies that want to experiment and support. Continue reading IBM Debuts Advanced Encryption Service After Years of R&D

OpenAI’s natural language processing (NLP) model GPT-3 offers 175 billion parameters, compared with its predecessor, GPT-2’s mere 1.5 billion parameters. The result of GPT-3’s immense size has enabled it to generate human-like text based on only a few examples of a task. Now, many users have gained access to the API, and the result has been some interesting use cases and applications. But the ecosystem is still nascent and how it matures — or whether it’s superseded by another NLP model — remains to be seen. Continue reading GPT-3: New Applications Developed for OpenAI’s NLP Model

With an initial focus on the Indian market, Facebook is developing a cryptocurrency aimed for use on its WhatsApp messaging app. More specifically, sources said the company is developing a so-called stablecoin, which is pegged to the U.S. dollar to reduce volatility. The company is, however, still working on its strategy, meaning that debut of the coin is still some time off. In 2014, Facebook hired former PayPal president David Marcus to run Messenger, fueling belief the company was going to engage in financial services. Continue reading Facebook Strategizing Cryptocurrency for WhatsApp in India

Chinese smartphone manufacturer Xiaomi plans to launch its IPO in Hong Kong in what is anticipated to be the world’s biggest IPO in 2018. The filing with the Hong Kong stock exchange did not reveal the size or projected valuation of the offering, but sources say the company hopes to raise at least $10 billion. A source also reported that the listing will value the company at “less than the $100 billion figure previously suggested.” Xiaomi’s filing also uncovered some financial details for the first time. Continue reading Xiaomi Plans Hong Kong IPO, China Reins In Tech Companies

If measured in press impressions, 2017 has most definitely been the “Year of AI,” But looking past the hype, a few things are clear: 1) progress in actual machine intelligence capability has been slow and fragmented; 2) applied AI is still the domain of less than 20 companies; and 3) still, machine learning (not AI) is being deployed across enterprise domains of numerous business sectors and creating big value. Similarly, and since it will take another year or two for current advances in machine learning to trickle down to the consumer sector, we’re not really expecting much breakthrough in AI or even machine learning at CES 2018. Continue reading Artificial Intelligence at CES 2018: Expect More of the Same

The federal government, financial service companies, and other regulated industries store their most important data on tape, an old-fashioned and inconvenient format that is, nonetheless, impervious to hackers. As cyberattacks become more skillful and persistent, other companies are now following suit. Starting in the 1950s, digital tape, stored in on-site libraries, was the only means of reliable storage for massive amounts of data. Eventually, companies moved to digital records and, in recent years, the cloud. Continue reading Companies Return to Tape As Protection From Cyberattacks

Chief execs Marc Benioff of Salesforce.com and Ginni Rometty of IBM announced a new partnership yesterday that will combine the two companies’ artificial intelligence technologies to create new data analytics offerings for helping others target products and services. Available in the second half of 2017, the offerings will introduce “integrated AI services that weave the broad human-like conversation and learning capabilities of IBM’s Watson with Salesforce’s more sales-oriented Einstein,” reports The Wall Street Journal. In an “effort to reinvent itself for the cloud-computing era,” IBM has been tailoring Watson “for a variety of industries including health care, financial services and automobiles.” Continue reading IBM and Salesforce to Link AI Technologies for Data Analytics

China’s Ant Financial Services Group, an affiliate of Alibaba Group Holdings, is building a global network of merchants that accept its payment services via the Alipay mobile payments app. Ant Financial just announced a partnership with the online-payments arm of Thai conglomerate Charoen Pokphand Group, meaning that Chinese tourists can use their familiar payment app there. Alibaba has also launched its new Digital Media and Entertainment Group as the company continues its push into movies, online video, music, gaming and more. Continue reading Alibaba Expands Alipay, Creates Media Entertainment Group

In a private meeting with no media in attendance, more than 100 executives from some of the world’s largest financial institutions met at NASDAQ’s New York City office. They gathered to delve deeper into the promise of blockchain, the technology behind Bitcoin, which became active in 2009. These financial institutions have been wary of Bitcoin, because users are anonymous and can engage in money-laundering and other banking violations. What they looked at was digital U.S. dollars, a “fiat currency” that avoids those risks. Continue reading Wall Street Firms Gather to Discuss Blockchain, Digital Dollars