Issue 4
Viewpoint
survey · United Kingdom
FCA: 44% of young Britons wrongly think AI financial advice is regulated
FCA research finds that 44% of young UK investors wrongly believe AI financial advice is regulated, and more than a third consider it acceptable to base an investment decision solely on AI output. The regulator warned on 26–27 August that people using AI chatbots are not covered by a safety net.
Who is affected and how
- retail customer
- An AI chatbot's answer is not regulated advice, so check it with an independent, authorised source before investing.
- fintech company
- AI assistant features should be presented so that customers do not mistake them for regulated advice.
supervision · United States
SEC probes near-collapse of AI hedge fund Situational Awareness
The SEC is reportedly investigating the near-collapse of a $30 billion AI fund and Wall Street's role in it, according to a report published on 24 August based on the New York Times. A Hungarian…
chief financial officerThe concentration and liquidity of AI positions should be reassessed.deployment · European UnionScalable Capital opens platform to AI assistants; Fortune reports on AI trading at a German bank
Scalable Capital has become the first bank in Europe to open its platform to AI assistants through Agentic Investing. According to Fortune, a German bank let AI trade for customers, and in one test…
retail customerGiving an AI assistant trading authority carries risk, so access levels should be set deliberately.banking professionalControl over AI assistants' access and the client's consent must be documented.fintech companyOpening the platform creates a new distribution channel but also raises liability questions.supervision · European UnionECB tells eurozone banks to tighten cyber-security as AI changes the threat picture
The European Central Bank has told eurozone banks to strengthen their cyber-security because AI is changing the threat picture. According to a Hungarian report, the ECB may also launch strict…
banking professionalCyber-risk controls and defences against AI-based attacks need to be reviewed.regulation · European UnionBaFin begins implementing EU AI rules in finance; ESAs issue statement on frontier AI
Germany's BaFin has begun implementing the EU's new AI rules for financial services. On 31 July the EBA, EIOPA and ESMA issued a joint statement on frontier AI, and the AI Act's credit-scoring…
banking professionalAs the buyer of a credit-scoring or pricing system, the bank must ensure instructions for use and human oversight are in place.insurerFor high-risk AI systems, the requirements apply to pricing and underwriting as well.fintech companyFor lending and scoring products, provider obligations under the AI Act need to be clarified.Hungary
oversightHungary's MNB reviews banks' AI sub-strategies as supervisors ask for evidence of AI operationsbanking professionalDocumented consistency must be established between the AI sub-strategy and actual operations.fraudHungarian warning: a family code word can protect against AI voice-cloning phone scamsretail customerAgree a code word with your family in advance, and call the relative back when asked for money urgently.banking professionalCustomer communication should include practical advice on fraud protection.deploymentUniqa uses AI tool NiQA to speed up customer claims handlinginsurerAI-based claims handling can bring measurable improvements in both customer experience and efficiency.retail customerClaims reported with the help of an AI assistant can be processed faster.caseColonnade Insurance: how AI-driven cyberattacks are assessed under cyber insuranceinsurerIn claims handling, the classification of events and losses must be clarified for AI-driven attacks.chief financial officerCyber policy terms should be checked on whether an AI-driven attack is covered.fraudPoland urges action against AI scammers using fake video of the presidentretail customerDo not treat public figures' video investment endorsements as authentic.caseAI is reshaping Czech insurance, but technology is no longer the deciding factorinsurerIn AI adoption, organisational and process factors matter more than the technology itself.
More key stories of the week
case · global
Rogue AI agents expose cyber cover gap for brokers as insurers revise policies
A data breach caused by a rogue AI exposed gaps in cyber insurance cover for brokers, and insurers are adjusting their terms to the risks posed by AI agents. The topic was covered between 24 and 27…
insurerCyber policy wording should be reviewed for losses caused by autonomous AI agents.chief financial officerCheck whether existing cyber insurance covers losses caused by an AI agent.tool · globalGoogle Cloud launches Gemini Enterprise for Financial Services, with Deutsche Bank's input
On 25–26 August, Google Cloud unveiled Gemini Enterprise for Financial Services, an agentic AI solution built for finance professionals, and Deutsche Bank helped shape it. According to Hungarian…
banking professionalManual research tasks can be automated, but checking the results remains a professional responsibility.chief financial officerIt is worth starting a pilot for recurring analysis and research processes.case · United StatesGoldman Sachs partner warns AI could erode bankers' independent thinking and the talent pipeline
A Goldman Sachs partner warned that if AI takes over bankers' reasoning, "cognitive atrophy" could set in and bankers could grow up unable to think for themselves. Junior hiring data also support…
banking professionalAI output must be something bankers can argue for and verify, or professional judgment will deteriorate.chief financial officerIndependent analytical tasks should be preserved in juniors' learning process.deployment · globalAI agents run 23 million stablecoin transfers in 30 days on x402 protocol as Payouts.com and Casper launch it
Payouts.com and Casper Association launched the x402 protocol for AI agent payments, and data show agents made 23 million stablecoin transfers in 30 days. Because their value is predictable…
fintech companyAgent payment rails require planned stablecoin integration and API-level authentication.banking professionalMachine-to-machine payments are a new transaction channel, and products need to be prepared for it.fraud · United KingdomVoice-cloning scams: banks respond as campaign says 28% of UK adults were targeted
Banks are taking action against deepfake voice scams, according to coverage from GFF 2026, while a UK campaign says 28% of adults have been targeted by a voice-cloning scam. The topic was covered…
retail customerIf a call asks for money, verify it through an independent channel.banking professionalVoice authentication alone is not sufficient; additional checks are needed.fraud · United StatesAI investment scams: New York issues official alert, losses reach $8 billion
The New York State Department of State's Division of Consumer Protection has warned of a surge in AI investment scams, and a Hungarian report puts losses from the scams at $8 billion. Other sources…
retail customerBefore investing, check the platform and the firm's licence in an official register.banking professionalFor unusual transfers to a platform, consider warning the customer.case · globalAI liability insurance: exclusions appear in D&O and E&O policies as carriers hesitate
The insurance market is struggling to cover risks arising from AI: AI exclusions are appearing in D&O and E&O policies, and generative AI liability insurance is an emerging product. One of the…
insurerPolicies need to define precisely what counts as damage arising from AI.chief financial officerAI exclusions in existing D&O and E&O policies should be reviewed.investment · United StatesJPMorgan leads $5 billion debt financing for Volta's AI buildout as investor tolerance is tested
JPMorgan is leading $5 billion in debt financing for Volta's AI infrastructure buildout. According to Bloomberg, one of the bank's top bond bankers says AI debt is testing investor tolerance.
banking professionalFinancing AI infrastructure involves large-ticket credit risk that needs to be monitored.chief financial officerThe market's reception of AI debt also affects financing terms.deployment · globalVisa, Mastercard and 24 other firms form alliance to set standards for AI agent payments
In the Agentic Payments Alliance launched by Rain, Visa, Mastercard and Circle are joined by 23 other firms, including Solana, to shape the rules for AI agent payments. According to the alliance's 24…
fintech companyIt is worth joining the standard-setting, as it will define the technical framework for agent payments.banking professionalAuthorisation and dispute resolution for agent transactions should be designed in line with the card networks' direction.case · globalChatbots are a risky source of tax advice, sources warn
Several sources, including Hungarian and Romanian ones, warn that tax advice from AI chatbots is unreliable and can lead to costly mistakes. The articles appeared on 27 and 28 August.
retail customerOn tax matters, an AI answer should be checked against an official source or a professional.accountantTax advice that clients obtain from AI must be verified, and accountants should be prepared for it.fraudAI raises fraud risk at Australian banks as lending control gaps persist
According to Asian Business Review, bank fraud in Australia is becoming harder to detect because criminals use AI to forge identities and documents. Fake AI-generated payslips are also causing…
banking professionalVerify income statements and identity documents against an independent source as well.supervision · European UnionECB experts warn AI bubble burst could put €440 billion at risk
ECB experts have warned of the risk of an AI bubble bursting, with euro-area exposure to the Magnificent Seven reported to be mainly indirect. OMFIF analyses the financing needs of AI infrastructure…
chief financial officerExposure linked to AI equities should be examined through stress testing.retail customerSavings with indirect exposure to AI equities are worth checking.In brief
deploymentFour major banks deploy Ant International's AI model for currency hedgingchief financial officerAI forecasting models are already in live use in FX and liquidity management.banking professionalA pilot of AI models in treasury is worth considering.surveyBank of Japan: over 90% of Japanese financial institutions use generative AIbanking professionalAs an industry benchmark, generative AI use has become commonplace.survey63% of advisers have clients using AI tools, and quality concerns persistbanking professionalIn client conversations, expect clients to bring AI-generated suggestions, and address them openly.retail customerIt is worth discussing AI answers with your adviser as well.layoffsJPMorgan files layoff notice in New Jersey as DBS reskills 11,000 staff for AIbanking professionalReskilling programmes and AI skills are increasingly a factor in keeping a job.chief financial officerWorkforce planning must treat the AI effect and the cost of reskilling together.surveyProtiviti survey: 76% of CFOs use AI for forecasting, but only 35% measure returnschief financial officerAI investments need measurable return metrics attached to them.accountantThe role and oversight of AI tools in the forecasting process should be documented.regulationFCA's Mills Review puts AI governance at the heart of UK fintechfintech companyThe AI governance framework should be documented and aligned with supervisory expectations.investmentNvidia signs letter of intent with financial giants on $500 billion AI alliancechief financial officerThe private credit and equity players financing AI infrastructure are being reshuffled.banking professionalThe role of large alternative asset managers in AI financing is competition for bank lending.deploymentTax authorities adopt AI in the Philippines, China and GreeceaccountantTax authorities' AI tools may change expectations for data reporting and audits.chief financial officerAI use by tax authorities may demand stricter discipline in data reporting.caseJPMorgan: rising bond yields may price in AI productivity gains; central bank AI analysischief financial officerThe shift in the yield environment may also reflect AI productivity expectations, which should be factored into financing plans.toolRSM and Andera launch AI control-testing platform for internal auditorsaccountantAutomating control testing changes the workflow of sample-based checks.fraudGroup-IB: deepfake investment scams could spread to Gulf marketsretail customerCheck a celebrity's or expert's video investment offer separately before transferring any money.deploymentRevolut sets up AI research unit, Revolut Research, for banking and fraud preventionfintech companyLarge fintechs are building their own AI research units, extending competition into research.banking professionalDeveloping AI models against fraud requires in-house capacity.investmentAnthropic IPO could be led by major US banks at a valuation of up to $2 trillionchief financial officerExposure to AI equities should be assessed against volatility around the IPO.banking professionalThe large stakes of investment banking roles shape the capital-market position of the AI sector.deploymentDBS and Stripe partner on agentic commerce while Visa and Dunamu plan stablecoin AI paymentsfintech companyAgent payment partnerships offer a template for bank–payment provider partnerships.banking professionalAgentic and cross-border payment offerings should be designed together with partners.investmentLunar co-founders launch AI-native audit firm Repodo with €8.2m in fundingaccountantAI-native audit firms are new competitors for traditional audit providers.fintech companyInvestor interest is turning toward audit automation.toolMeridian AI launches as an AI tool that understands accounting workaccountantThe tool can be tried on repetitive accounting tasks, but checking the results remains the accountant's responsibility.investmentPrivate equity is buying accounting firms, with AI technology part of the investment thesisaccountantOwnership changes and the adoption of AI tools together are reshaping how smaller accounting firms operate.chief financial officerOwnership and technology changes at supplier accounting firms are worth monitoring.toolStarling and Xelix use agentic AI against invoice and payment fraudchief financial officerVerification steps against invoice and payment fraud can be automated.fintech companyAgentic fraud prevention can be a competitive advantage in corporate payment services.accountantThe invoice-checking process should also be reinforced with AI tools.caseAI hallucinations help sink $34 million class action against AIGinsurerErroneous AI-generated citations can be a source of professional liability insurance claims.toolGrowhill Wealth launches AI automation tools for independent advisorsbanking professionalClient-management and documentation tasks can be automated, but professional responsibility remains.fintech companyFirms can compete with AI tools aimed at the independent advisor market.deploymentTD Bank realizes $141 million in AI value, DBS scales agentic AI in corporate creditbanking professionalAutomating lending and corporate workflows can deliver measurable benefits.chief financial officerThe method for calculating AI savings should be clarified before deployment.layoffsEntry-level adjuster hiring falls as insurers turn to AIinsurerClaims-handling headcount planning and the junior career path need to be rethought.banking professionalAutomation of entry-level positions may also affect the skills people bring when entering the profession.fraudBank Negara warns of deepfake ads impersonating its Governorretail customerTreat any investment ad appearing in the name of a central bank or official leader as suspicious.deploymentPhilippines' AMLC deploys AI to detect suspicious financial transactionsbanking professionalThe authority's analysis of reported transactions may become more advanced.toolAviva launches AI video analysis tool to flag risk of workplace injuryinsurerThe risk assessment service can be extended to loss prevention and pricing.chief financial officerReducing workplace accident risk may also affect insurance premiums.caseMortgage lenders weigh AI, alternative data and credit modelsbanking professionalWhen using alternative data, model risk and the obligation to explain decisions must be managed.regulationCalls to tax AI emerge: proposals for a levy and an international agencychief financial officerA possible AI tax could affect cost calculations and the return on AI investments.accountantAI taxation proposals may become new topics in tax advisory.oversightKorean regulator to review banks' call centers over AI chatbot delaysbanking professionalAn AI chatbot must not come at the expense of access to human customer service.retail customerThe regulator is checking how reachable customer service is.surveyTwo in five Singapore firms plan cyber insurance within 12 months as AI raises cyber riskinsurerDemand for cyber policies is rising, which also puts the pricing of AI-related risks in focus.chief financial officerBecause of the risks that come with adopting AI, cyber insurance cover should also be planned for in the budget.regulationAustralia's Tax Practitioners' Board issues guidance on AI use by tax professionalsaccountantAfter AI-assisted tax research, the accountant must verify the legal reference personally.fraudAI-assisted property scams target Australian homebuyersretail customerWhen buying property, confirm payment details and the counterparty through an independent channel.regulationFive AI steps to take before the SEC examiner knockschief financial officerAI-related claims in public disclosures should be verifiable.surveyExperian report links fraud risk to AI: 60% of businesses report higher fraud losseschief financial officerWith fraud losses rising, payment and supplier controls need to be strengthened.surveyFintech survey: 86% productivity gain in tech and product, but AI impact is unevenfintech companyAI impact is not the same across all functions, so returns should be measured function by function.surveynCino: banks' prepaid AI allowance has run out, and they are buying morebanking professionalThe cost of AI use and consumption of the allowance need to be measured.chief financial officerPurchases of AI capacity should be budgeted on a usage basis.investmentNeno raises €6.6m for AI-native SME finance, Adfin $18m for agentic business financefintech companyInvestors are backing AI-native SME finance and agentic finance services.chief financial officerNew AI-based providers of SME finance are emerging.investmentKita raises $4.5 million to expand AI credit assessment for lendersfintech companyInvestor interest in credit-assessment AI continues.banking professionalLenders can also buy AI-based scoring from an external provider.