US presidential candidate champions blockchain banking
An independent presidential candidate and banking entrepreneur has testified before the Wyoming Legislature regarding the benefits of blockchain banking
Brock Pierce, a 39-year-old child actor turned tech innovator and politician, recently gave his supportive testimony via video link at The President's House on the University of Wyoming campus.
According to a recent blockchain banking technology is an innovative way of storing data, which is then distributed in a secure ledger that enables several stakeholders to safely access information. The benefits of blockchain include speed, heightened security and transparency, states the report: “The speed is just one of the many potential benefits blockchain brings to banking. It’s not only about greater efficiency but also a new level of transparency and security.”
Blockchain technology also creates new infrastructure to provide future innovative applications, beyond cryptocurrencies, thus motivating positive changes across businesses.
Pierce, who is a pioneer of blockchain technology, spoke about how the system can extend capital to businesses throughout the USA, rather than just the coastal hubs. He also commented on ways to upgrade banking and deliver financial inclusion that enables banking services to be available to all.
He said, "Financial inclusion is something that's very relevant to not just this country but the world at large -- and creating systems to provide for more cost-effective mobile banking solutions, lowering the bar and making banking more accessible, is just good for humanity and this country in general.”
Pierce, who is committed to supporting accessible, global banking services, added: “The major impact of this legislation and the job-creation and all of the things that I assume you're hoping will come from this really starts to happen once you have your first successful bank. It is an arduous process but, once you've established your first successful operation, that's when others will follow.”
Photo sourced from Pierces' LinkedIn profile
AI and the future of global trade
Artificial intelligence (AI) is becoming entrenched in our daily lives, but the technology is still surrounded by misconceptions and skepticism. Ask the public and they may jump to dystopian scenarios where robots have taken over the world.
While this makes for a good sci-fi blockbuster plot, the reality is different and more benign. Those products that Amazon suggested you buy? AI. That TV series you were recommended to watch on Netflix? AI. That self-driving Tesla car you crave to take for a spin? You guessed it: AI.
There is no single industry that is not being re-shaped by technology. Until recently, however, there was one noteworthy exception: global trade. Fortunately, that is slowly changing.
The mechanism that underpins global trade – trade finance – is an industry that remains largely paper-based and reliant on manual processes. This US$18tn a year industry is now being influenced by a new wave of technological innovation, including AI.
Exploring the potential of AI in Trade Finance
AI refers to the use of computer-aided systems to help people make decisions or make decisions for them. It relies on large volumes of data and models to make sense of information and draw intelligence.
In trade finance, AI is helpful in analysing quantitative data, and the repetitive nature of trade finance means that there is a lot of non-traditional data at our disposal.
This means that when trade finance providers need to assess the risks of funding a transaction, AI models can be a very efficient tool for data analysis and reveal intelligence and risks relating to small companies.
AI helps the industry move beyond traditional credit scoring processes, which are often outdated and remain reliant on historical accounting entries – a barrier that prevents small companies from accessing trade finance and has resulted in a $1.5tn global shortfall.
Overcoming the barriers
AI can tackle this shortfall by creating accurate credit scoring models. This can include a company’s payment history, measure the risks of funding a transaction, identify supply chain risks, and benchmark them against their peer group.
Trade finance providers can use this information to communicate effectively with their SME clients, ultimately helping establish better business relationships.
Towards a technological utopia?
The adoption of AI has the potential to do a lot of good in the industry, and the industry is in the early stages of radical transformation.
Advances are driven by fintechs as well as a willingness to change. The industry is working together to create new infrastructure for distributing trade finance assets to other investors in a transparent, standardised format.
The creation of infrastructure is possible due to improvements in technology and integrated across the trade ecosystem in cooperation with banks, insurers, and other industry participants.
It’s collaboration at its best: together, the industry is using technology to re-shape global trade as we know it.