Tag Archives: platform
#433696 3 Big Ways Tech Is Disrupting Global ...
Disruptive business models are often powered by alternative financing. In Part 1 of this series, I discussed how mobile is redefining money and banking and shared some of the dramatic transformations in the global remittance infrastructure.
In this article, we’ll discuss:
Peer-to-peer lending
AI financial advisors and robo traders
Seamless Transactions
Let’s dive right back in…
Decentralized Lending = Democratized Access to Finances
Peer-to-peer (P2P) lending is an age-old practice, traditionally with high risk and extreme locality. Now, the P2P funding model is being digitized and delocalized, bringing lending online and across borders.
Zopa, the first official crowdlending platform, arrived in the United Kingdom in 2004. Since then, the consumer crowdlending platform has facilitated lending of over 3 billion euros ($3.5 billion USD) of loans.
Person-to-business crowdlending took off, again in the U.K., in 2005 with Funding Circle, now with over 5 billion euros (~5.8 billion USD) of capital loaned to small businesses around the world.
Crowdlending next took off in the US in 2006, with platforms like Prosper and Lending Club. The US crowdlending industry has boomed to $21 billion in loans, across 515,000 loans.
Let’s take a step back… to a time before banks, when lending took place between trusted neighbors in small villages across the globe. Lending started as peer-to-peer transactions.
As villages turned into towns, towns turned into cities, and cities turned into sprawling metropolises, neighborly trust and the ability to communicate across urban landscapes broke down. That’s where banks and other financial institutions came into play—to add trust back into the lending equation.
With crowdlending, we are evidently returning to this pre-centralized-banking model of loans, and moving away from cumbersome intermediaries (e.g. high fees, regulations, and extra complexity).
Fueled by the permeation of the internet, P2P lending took on a new form as ‘crowdlending’ in the early 2000s. Now, as blockchain and artificial intelligence arrive on the digital scene, P2P lending platforms are being overhauled with transparency, accountability, reliability, and immutability.
Artificial Intelligence Micro Lending & Credit Scores
We are beginning to augment our quantitative decision-making with neural networks processing borrowers’ financial data to determine their financial ‘fate’ (or, as some call it, your credit score). Companies like Smart Finance Group (backed by Kai Fu Lee and Sinovation Ventures) are using artificial intelligence to minimize default rates for tens of millions of microloans.
Smart Finance is fueled by users’ personal data, particularly smartphone data and usage behavior. Users are required to give Smart Finance access to their smartphone data, so that Smart Finance’s artificial intelligence engine can generate a credit score from the personal information.
The benefits of this AI-powered lending platform do not stop at increased loan payback rates; there’s a massive speed increase as well. Smart Finance loans are frequently approved in under eight seconds. As we’ve seen with other artificial intelligence disruptions, data is the new gold.
Digitizing access to P2P loans paves the way for billions of people currently without access to banking to leapfrog the centralized banking system, just as Africa bypassed landline phones and went straight to mobile. Leapfrogging centralized banking and the credit system is exactly what Smart Finance has done for hundreds of millions of people in China.
Blockchain-Backed Crowdlending
As artificial intelligence accesses even the most mundane mobile browsing data to assign credit scores, blockchain technologies, particularly immutable ledgers and smart contracts, are massive disruptors to the archaic banking system, building additional trust and transparency on top of current P2P lending models.
Immutable ledgers provide the necessary transparency for accurate credit and loan defaulting history. Smart contracts executed on these immutable ledgers bring the critical ability to digitally replace cumbersome, expensive third parties (like banks), allowing individual borrowers or businesses to directly connect with willing lenders.
Two of the leading blockchain platforms for P2P lending are ETHLend and SALT Lending.
ETHLend is an Ethereum-based decentralized application aiming to bring transparency and trust to P2P lending through Ethereum network smart contracts.
Secure Automated Lending Technology (SALT) allows cryptocurrency asset holders to use their digital assets as collateral for cash loans, without the need to liquidate their holdings, giving rise to a digital-asset-backed lending market.
While blockchain poses a threat to many of the large, centralized banking institutions, some are taking advantage of the new technology to optimize their internal lending, credit scoring, and collateral operations.
In March 2018, ING and Credit Suisse successfully exchanged 25 million euros using HQLA-X, a blockchain-based collateral lending platform.
HQLA-X runs on the R3 Corda blockchain, a platform designed specifically to help heritage financial and commerce institutions migrate away from their inefficient legacy financial infrastructure.
Blockchain and tokenization are going through their own fintech and regulation shakeup right now. In a future blog, I’ll discuss the various efforts to more readily assure smart contracts, and the disruptive business model of security tokens and the US Securities and Exchange Commission.
Parallels to the Global Abundance of Capital
The abundance of capital being created by the advent of P2P loans closely relates to the unprecedented global abundance of capital.
Initial coin offerings (ICOs) and crowdfunding are taking a strong stand in disrupting the $164 billion venture capital market. The total amount invested in ICOs has risen from $6.6 billion in 2017 to $7.15 billion USD in the first half of 2018. Crowdfunding helped projects raise more than $34 billion in 2017, with experts projecting that global crowdfunding investments will reach $300 billion by 2025.
In the last year alone, using ICOs, over a dozen projects have raised hundreds of millions of dollars in mere hours. Take Filecoin, for example, which raised $257 million in only 30 days; its first $135 million was raised in the first hour. Similarly, the Dragon Coin project (which itself is revolutionizing remittance in high-stakes casinos around the world) raised $320 million in its 30-day public ICO.
Some Important Takeaways…
Technology-backed fundraising and financial services are disrupting the world’s largest financial institutions. Anyone, anywhere, at anytime will be able to access the capital they need to pursue their idea.
The speed at which we can go from “I’ve got an idea” to “I run a billion-dollar company” is moving faster than ever.
Following Ray Kurzweil’s Law of Accelerating Returns, the rapid decrease in time to access capital is intimately linked (and greatly dependent on) a financial infrastructure (technology, institutions, platforms, and policies) that can adapt and evolve just as rapidly.
This new abundance of capital requires financial decision-making with ever-higher market prediction precision. That’s exactly where artificial intelligence is already playing a massive role.
Artificial Intelligence, Robo Traders, and Financial Advisors
On May 6, 2010, the Dow Jones Industrial Average suddenly collapsed by 998.5 points (equal to 8 percent, or $1 trillion). The crash lasted over 35 minutes and is now known as the ‘Flash Crash’. While no one knows the specific reason for this 2010 stock market anomaly, experts widely agree that the Flash Crash had to do with algorithmic trading.
With the ability to have instant, trillion-dollar market impacts, algorithmic trading and artificial intelligence are undoubtedly ingrained in how financial markets operate.
In 2017, CNBC.com estimated that 90 percent of daily trading volume in stock trading is done by machine algorithms, and only 10 percent is carried out directly by humans.
Artificial intelligence and financial management algorithms are not only available to top Wall Street players.
Robo-advisor financial management apps, like Wealthfront and Betterment, are rapidly permeating the global market. Wealthfront currently has $9.5 billion in assets under management, and Betterment has $10 billion.
Artificial intelligent financial agents are already helping financial institutions protect your money and fight fraud. A prime application for machine learning is in detecting anomalies in your spending and transaction habits, and flagging potentially fraudulent transactions.
As artificial intelligence continues to exponentially increase in power and capabilities, increasingly powerful trading and financial management bots will come online, finding massive new and previously lost streams of wealth.
How else are artificial intelligence and automation transforming finance?
Disruptive Remittance and Seamless Transactions
When was the last time you paid in cash at a toll booth? How about for a taxi ride?
EZ-Pass, the electronic tolling company implemented extensively on the East Coast, has done wonders to reduce traffic congestion and increase traffic flow.
Driving down I-95 on the East Coast of the United States, drivers rarely notice their financial transaction with the state’s tolling agencies. The transactions are seamless.
The Uber app enables me to travel without my wallet. I can forget about payment on my trip, free up my mental bandwidth and time for higher-priority tasks. The entire process is digitized and, by extension, automated and integrated into Uber’s platform (Note: This incredible convenience many times causes me to accidentally walk out of taxi cabs without paying!).
In January 2018, we saw the success of the first cutting-edge, AI-powered Amazon Go store open in Seattle, Washington. The store marked a new era in remittance and transactions. Gone are the days of carrying credit cards and cash, and gone are the cash registers. And now, on the heals of these early ‘beta-tests’, Amazon is considering opening as many as 3,000 of these cashierless stores by 2023.
Amazon Go stores use AI algorithms that watch various video feeds (from advanced cameras) throughout the store to identify who picks up groceries, exactly what products they select, and how much to charge that person when they walk out of the store. It’s a grab and go experience.
Let’s extrapolate the notion of seamless, integrated payment systems from Amazon Go and Uber’s removal of post-ride payment to the rest of our day-to-day experience.
Imagine this near future:
As you near the front door of your home, your AI assistant summons a self-driving Uber that takes you to the Hyperloop station (after all, you work in L.A. but live in San Francisco).
At the station, you board your pod, without noticing that your ticket purchase was settled via a wireless payment checkpoint.
After work, you stop at the Amazon Go and pick up dinner. Your virtual AI assistant passes your Amazon account information to the store’s payment checkpoint, as the store’s cameras and sensors track you, your cart and charge you auto-magically.
At home, unbeknownst to you, your AI has already restocked your fridge and pantry with whatever items you failed to pick up at the Amazon Go.
Once we remove the actively transacting aspect of finance, what else becomes possible?
Top Conclusions
Extraordinary transformations are happening in the finance world. We’ve only scratched the surface of the fintech revolution. All of these transformative financial technologies require high-fidelity assurance, robust insurance, and a mechanism for storing value.
I’ll dive into each of these other facets of financial services in future articles.
For now, thanks to coming global communication networks being deployed on 5G, Alphabet’s LUNE, SpaceX’s Starlink and OneWeb, by 2024, nearly all 8 billion people on Earth will be online.
Once connected, these new minds, entrepreneurs, and customers need access to money and financial services to meaningfully participate in the world economy.
By connecting lenders and borrowers around the globe, decentralized lending drives down global interest rates, increases global financial market participation, and enables economic opportunity to the billions of people who are about to come online.
We’re living in the most abundant time in human history, and fintech is just getting started.
Join Me
Abundance Digital Online Community: I have created a Digital/Online community of bold, abundance-minded entrepreneurs called Abundance Digital. This is my ‘onramp’ for exponential entrepreneurs – those who want to get involved and play at a higher level. Click here to learn more.
Image Credit: Novikov Aleksey / Shutterstock.com Continue reading
Posted in Human Robots
#433288 The New AI Tech Turning Heads in Video ...
A new technique using artificial intelligence to manipulate video content gives new meaning to the expression “talking head.”
An international team of researchers showcased the latest advancement in synthesizing facial expressions—including mouth, eyes, eyebrows, and even head position—in video at this month’s 2018 SIGGRAPH, a conference on innovations in computer graphics, animation, virtual reality, and other forms of digital wizardry.
The project is called Deep Video Portraits. It relies on a type of AI called generative adversarial networks (GANs) to modify a “target” actor based on the facial and head movement of a “source” actor. As the name implies, GANs pit two opposing neural networks against one another to create a realistic talking head, right down to the sneer or raised eyebrow.
In this case, the adversaries are actually working together: One neural network generates content, while the other rejects or approves each effort. The back-and-forth interplay between the two eventually produces a realistic result that can easily fool the human eye, including reproducing a static scene behind the head as it bobs back and forth.
The researchers say the technique can be used by the film industry for a variety of purposes, from editing facial expressions of actors for matching dubbed voices to repositioning an actor’s head in post-production. AI can not only produce highly realistic results, but much quicker ones compared to the manual processes used today, according to the researchers. You can read the full paper of their work here.
“Deep Video Portraits shows how such a visual effect could be created with less effort in the future,” said Christian Richardt, from the University of Bath’s motion capture research center CAMERA, in a press release. “With our approach, even the positioning of an actor’s head and their facial expression could be easily edited to change camera angles or subtly change the framing of a scene to tell the story better.”
AI Tech Different Than So-Called “Deepfakes”
The work is far from the first to employ AI to manipulate video and audio. At last year’s SIGGRAPH conference, researchers from the University of Washington showcased their work using algorithms that inserted audio recordings from a person in one instance into a separate video of the same person in a different context.
In this case, they “faked” a video using a speech from former President Barack Obama addressing a mass shooting incident during his presidency. The AI-doctored video injects the audio into an unrelated video of the president while also blending the facial and mouth movements, creating a pretty credible job of lip synching.
A previous paper by many of the same scientists on the Deep Video Portraits project detailed how they were first able to manipulate a video in real time of a talking head (in this case, actor and former California governor Arnold Schwarzenegger). The Face2Face system pulled off this bit of digital trickery using a depth-sensing camera that tracked the facial expressions of an Asian female source actor.
A less sophisticated method of swapping faces using a machine learning software dubbed FakeApp emerged earlier this year. Predictably, the tech—requiring numerous photos of the source actor in order to train the neural network—was used for more juvenile pursuits, such as injecting a person’s face onto a porn star.
The application gave rise to the term “deepfakes,” which is now used somewhat ubiquitously to describe all such instances of AI-manipulated video—much to the chagrin of some of the researchers involved in more legitimate uses.
Fighting AI-Created Video Forgeries
However, the researchers are keenly aware that their work—intended for benign uses such as in the film industry or even to correct gaze and head positions for more natural interactions through video teleconferencing—could be used for nefarious purposes. Fake news is the most obvious concern.
“With ever-improving video editing technology, we must also start being more critical about the video content we consume every day, especially if there is no proof of origin,” said Michael Zollhöfer, a visiting assistant professor at Stanford University and member of the Deep Video Portraits team, in the press release.
Toward that end, the research team is training the same adversarial neural networks to spot video forgeries. They also strongly recommend that developers clearly watermark videos that are edited through AI or otherwise, and denote clearly what part and element of the scene was modified.
To catch less ethical users, the US Department of Defense, through the Defense Advanced Research Projects Agency (DARPA), is supporting a program called Media Forensics. This latest DARPA challenge enlists researchers to develop technologies to automatically assess the integrity of an image or video, as part of an end-to-end media forensics platform.
The DARPA official in charge of the program, Matthew Turek, did tell MIT Technology Review that so far the program has “discovered subtle cues in current GAN-manipulated images and videos that allow us to detect the presence of alterations.” In one reported example, researchers have targeted eyes, which rarely blink in the case of “deepfakes” like those created by FakeApp, because the AI is trained on still pictures. That method would seem to be less effective to spot the sort of forgeries created by Deep Video Portraits, which appears to flawlessly match the entire facial and head movements between the source and target actors.
“We believe that the field of digital forensics should and will receive a lot more attention in the future to develop approaches that can automatically prove the authenticity of a video clip,” Zollhöfer said. “This will lead to ever-better approaches that can spot such modifications even if we humans might not be able to spot them with our own eyes.
Image Credit: Tancha / Shutterstock.com Continue reading
Posted in Human Robots
#433284 Tech Can Sustainably Feed Developing ...
In the next 30 years, virtually all net population growth will occur in urban regions of developing countries. At the same time, worldwide food production will become increasingly limited by the availability of land, water, and energy. These constraints will be further worsened by climate change and the expected addition of two billion people to today’s four billion now living in urban regions. Meanwhile, current urban food ecosystems in the developing world are inefficient and critically inadequate to meet the challenges of the future.
Combined, these trends could have catastrophic economic and political consequences. A new path forward for urban food ecosystems needs to be found. But what is that path?
New technologies, coupled with new business models and supportive government policies, can create more resilient urban food ecosystems in the coming decades. These tech-enabled systems can sustainably link rural, peri-urban (areas just outside cities), and urban producers and consumers, increase overall food production, and generate opportunities for new businesses and jobs (Figure 1).
Figure 1: The urban food value chain nodes from rural, peri-urban and urban producers
to servicing end customers in urban and peri-urban markets.
Here’s a glimpse of the changes technology may bring to the systems feeding cities in the future.
A technology-linked urban food ecosystem would create unprecedented opportunities for small farms to reach wider markets and progress from subsistence farming to commercially producing niche cash crops and animal protein, such as poultry, fish, pork, and insects.
Meanwhile, new opportunities within cities will appear with the creation of vertical farms and other controlled-environment agricultural systems as well as production of plant-based and 3D printed foods and cultured meat. Uberized facilitation of production and distribution of food will reduce bottlenecks and provide new business opportunities and jobs. Off-the-shelf precision agriculture technology will increasingly be the new norm, from smallholders to larger producers.
As part of Agricultural Revolution 4.0, all this will be integrated into the larger collaborative economy—connected by digital platforms, the cloud, and the Internet of Things and powered by artificial intelligence. It will more efficiently and effectively use resources and people to connect the nexus of food, water, energy, nutrition, and human health. It will also aid in the development of a circular economy that is designed to be restorative and regenerative, minimizing waste and maximizing recycling and reuse to build economic, natural, and social capital.
In short, technology will enable transformation of urban food ecosystems, from expanded production in cities to more efficient and inclusive distribution and closer connections with rural farmers. Here’s a closer look at seven tech-driven trends that will help feed tomorrow’s cities.
1. Worldwide Connectivity: Information, Learning, and Markets
Connectivity from simple cell phone SMS communication to internet-enabled smartphones and cloud services are providing platforms for the increasingly powerful technologies enabling development of a new agricultural revolution. Internet connections currently reach more than 4 billion people, about 55% of the global population. That number will grow fast in coming years.
These information and communications technologies connect food producers to consumers with just-in-time data, enhanced good agricultural practices, mobile money and credit, telecommunications, market information and merchandising, and greater transparency and traceability of goods and services throughout the value chain. Text messages on mobile devices have become the one-stop-shop for small farmers to place orders, gain technology information for best management practices, and access market information to increase profitability.
Hershey’s CocoaLink in Ghana, for example, uses text and voice messages with cocoa industry experts and small farm producers. Digital Green is a technology-enabled communication system in Asia and Africa to bring needed agricultural and management practices to small farmers in their own language by filming and recording successful farmers in their own communities. MFarm is a mobile app that connects Kenyan farmers with urban markets via text messaging.
2. Blockchain Technology: Greater Access to Basic Financial Services and Enhanced Food Safety
Gaining access to credit and executing financial transactions have been persistent constraints for small farm producers. Blockchain promises to help the unbanked access basic financial services.
The Gates Foundation has released an open source platform, Mojaloop, to allow software developers and banks and financial service providers to build secure digital payment platforms at scale. Mojaloop software uses more secure blockchain technology to enable urban food system players in the developing world to conduct business and trade. The free software reduces complexity and cost in building payment platforms to connect small farmers with customers, merchants, banks, and mobile money providers. Such digital financial services will allow small farm producers in the developing world to conduct business without a brick-and-mortar bank.
Blockchain is also important for traceability and transparency requirements to meet food regulatory and consumer requirement during the production, post-harvest, shipping, processing and distribution to consumers. Combining blockchain with RFID technologies also will enhance food safety.
3. Uberized Services: On-Demand Equipment, Storage, and More
Uberized services can advance development of the urban food ecosystem across the spectrum, from rural to peri-urban to urban food production and distribution. Whereas Uber and Airbnb enable sharing of rides and homes, the model can be extended in the developing world to include on-demand use of expensive equipment, such as farm machinery, or storage space.
This includes uberization of planting and harvesting equipment (Hello Tractor), transportation vehicles, refrigeration facilities for temporary storage of perishable product, and “cloud kitchens” (EasyAppetite in Nigeria, FoodCourt in Rwanda, and Swiggy and Zomto in India) that produce fresh meals to be delivered to urban customers, enabling young people with motorbikes and cell phones to become entrepreneurs or contractors delivering meals to urban customers.
Another uberized service is marketing and distributing “ugly food” or imperfect produce to reduce food waste. About a third of the world’s food goes to waste, often because of appearance; this is enough to feed two billion people. Such services supply consumers with cheaper, nutritious, tasty, healthy fruits and vegetables that would normally be discarded as culls due to imperfections in shape or size.
4. Technology for Producing Plant-Based Foods in Cities
We need to change diet choices through education and marketing and by developing tasty plant-based substitutes. This is not only critical for environmental sustainability, but also offers opportunities for new businesses and services. It turns out that current agricultural production systems for “red meat” have a far greater detrimental impact on the environment than automobiles.
There have been great advances in plant-based foods, like the Impossible Burger and Beyond Meat, that can satisfy the consumer’s experience and perception of meat. Rather than giving up the experience of eating red meat, technology is enabling marketable, attractive plant-based products that can potentially drastically reduce world per capita consumption of red meat.
5. Cellular Agriculture, Lab-Grown Meat, and 3D Printed Food
Lab-grown meat, literally meat grown from cultured cells, may radically change where and how protein and food is produced, including the cities where it is consumed. There is a wide range of innovative alternatives to traditional meats that can supplement the need for livestock, farms, and butchers. The history of innovation is about getting rid of the bottleneck in the system, and with meat, the bottleneck is the animal. Finless Foods is a new company trying to replicate fish fillets, for example, while Memphis meats is working on beef and poultry.
3D printing or additive manufacturing is a “general purpose technology” used for making, plastic toys, human tissues, aircraft parts, and buildings. 3D printing can also be used to convert alternative ingredients such as proteins from algae, beet leaves, or insects into tasty and healthy products that can be produced by small, inexpensive printers in home kitchens. The food can be customized for individual health needs as well as preferences. 3D printing can also contribute to the food ecosystem by making possible on-demand replacement parts—which are badly needed in the developing world for tractors, pumps, and other equipment. Catapult Design 3D prints tractor replacement parts as well as corn shellers, cart designs, prosthetic limbs, and rolling water barrels for the Indian market.
6. Alt Farming: Vertical Farms to Produce Food in Urban Centers
Urban food ecosystem production systems will rely not only on field-grown crops, but also on production of food within cities. There are a host of new, alternative production systems using “controlled environmental agriculture.” These include low-cost, protected poly hoop houses, greenhouses, roof-top and sack/container gardens, and vertical farming in buildings using artificial lighting. Vertical farms enable year-round production of selected crops, regardless of weather—which will be increasingly important in response to climate change—and without concern for deteriorating soil conditions that affect crop quality and productivity. AeroFarms claims 390 times more productivity per square foot than normal field production.
7. Biotechnology and Nanotechnology for Sustainable Intensification of Agriculture
CRISPR is a promising gene editing technology that can be used to enhance crop productivity while avoiding societal concerns about GMOs. CRISPR can accelerate traditional breeding and selection programs for developing new climate and disease-resistant, higher-yielding, nutritious crops and animals.
Plant-derived coating materials, developed with nanotechnology, can decrease waste, extend shelf-life and transportability of fruits and vegetables, and significantly reduce post-harvest crop loss in developing countries that lack adequate refrigeration. Nanotechnology is also used in polymers to coat seeds to increase their shelf-life and increase their germination success and production for niche, high-value crops.
Putting It All Together
The next generation “urban food industry” will be part of the larger collaborative economy that is connected by digital platforms, the cloud, and the Internet of Things. A tech-enabled urban food ecosystem integrated with new business models and smart agricultural policies offers the opportunity for sustainable intensification (doing more with less) of agriculture to feed a rapidly growing global urban population—while also creating viable economic opportunities for rural and peri-urban as well as urban producers and value-chain players.
Image Credit: Akarawut / Shutterstock.com Continue reading
Posted in Human Robots