Slowly but surely, the view of cryptocurrency as a fringe asset embraced only by a loyal, speculative few is changing. This switch in sentiment is being driven by several factors, with one of the most influential being the development of proper regulatory frameworks to support cryptocurrency. Whilst the average consumer might not be overly invested in the technical details of regulation, the knock on effects for the wider economy must be considered. Recent months and years have seen the UK’s two biggest trading partners, the US and EU surge ahead of them in the development of regulation that provides clarity, consumer protections and encourages investment. 

## What's been going on abroad?
Readers of the financial news and market analysts witnessed a big shake up in Crypto markets at the back end of last year. The re-election of former President Donald Trump sent markets soaring across the board with none benefitting more so than crypto markets. Bitcoin, the world’s most universally recognised digital currency, broke the $90,000 barrier, and the total global market value of Cryptocurrency climbed above $3 trillion for the first time in three years. This renewed enthusiasm was fueled by the expectation that the incoming President will continue his ‘pro-crypto’ stance, encouraging widespread adoption of the asset class by American businesses and streamlining compliance requirements. 

Meanwhile in Europe, the Markets in Crypto-Asset regulations (MiCA) have taken full effect across the EU, providing cryptocurrency firms, investors and consumers alike with a clearer set of rules and boundaries that are to be followed. Whilst some Crypto leaders, especially the less established players, will view much of the regulation as overly burdensome and as a drag on investment, having a clear framework dedicated to the asset class is undoubtedly a step in the right direction. A step that the UK has yet to emulate. 

## What’s going on at home? 
In short, not as much as our counterparts in Europe and America. Last year the FCA only regulated four new cryptocurrency firms in the UK, including a full 6-month patch where not a single new firm was authorised. As with any type of business regulation, there is of course a difficult balancing act to strike between ensuring consumer protection, preventing market abuse and encouraging innovation. But if the UK wants to continue living up to its moniker as one of the world's ‘Financial Capitals’ then one would think more has to be done in this space to prevent falling well behind our peers. 

Whilst not without its challenges, Crypto offers the potential for faster international transfers, greater transparency and lower transaction costs. These positives, coupled with recent research from the regulator revealing that 12% of UK adults now own a form of cryptocurrency, offers ample evidence that this growing sector of finance needs to be embraced.

## Steps in the right direction?
Despite the slow start, positive steps are being made in the right direction. The FCA recently regulated two significant players in the Cryptocurrency space, Coinbase and Bitpanda, with the former noting that the UK has quickly grown into their largest market outside of the US. Furthermore, the FCA also announced that their full cryptoasset regulatory regime is due to go live in 2026, providing standardised rules for Crypto firms operating in the UK and therefore bolstering market integrity. 

The UK has long been the home to innovative, world beating financial services companies, from high street giants like Barclays to emerging fintechs like Monzo. Moreover, the FCA itself has proven itself to be a pioneering innovator, with their fintech regulatory sandbox proving so successful it has been implemented by several other nations. If the right regulatory balance is struck, there is no reason why the UK cannot also be home to pre-eminent Cryptocurrency firms of the future.

## Key stats 
- Bitcoin - broke 90k dollars for the first time and global markets value topped 3 trillion usd for the first time in three years - [https://www.qmul.ac.uk/media/news/2024/hss/why-donald-trumps-election-win-fuelled-a-stock-market-surge.html](https://www.qmul.ac.uk/media/news/2024/hss/why-donald-trumps-election-win-fuelled-a-stock-market-surge.html)
- Criticism of MICA - [https://www.ulam.io/blog/mica-regulations-and-their-impact-on-the-crypto-industry](https://www.ulam.io/blog/mica-regulations-and-their-impact-on-the-crypto-industry)
- UK being sluggish on approvals - [https://www.cityam.com/the-uk-is-at-a-crypto-crossroads/](https://www.cityam.com/the-uk-is-at-a-crypto-crossroads/) 
- Coinbase approval and statistics - [https://coinmarketcap.com/academy/article/f632bdd5-6b46-48b1-b473-5cfee459c281](https://coinmarketcap.com/academy/article/f632bdd5-6b46-48b1-b473-5cfee459c281)
- Bitpanda approval - [https://www.cityam.com/bitpanda-shake-up-uk-crypto-market/](https://www.cityam.com/bitpanda-shake-up-uk-crypto-market/)

The view of cryptocurrency as a fringe asset embraced only by a loyal, speculative few is changing. Here’s what’s been going on and why the FCA may yet be a pioneering innovator in the space

Why the UK is playing catchup in the race for Cryptocurrency infrastructure

Let’s get real about AI was the subject of our second event this year, in conjunction with the Financial Services Forum.  While our earlier event in March discussed the ethics and challenges involved in the use of genAI for marketing and product dev, this second event was focused on actual use cases.  

With thanks to our amazing panel who provided a range of perspectives:
- Ben Lee, Head of Data & AI, Bidwells
- Michael Jung, CFO and Head of Global Business, DeepBrain AI
- Danielle Moore, Digital Marketing Manager, Lifesearch
- James Maxwell, Executive Creative Director, Teamspirit

Setting up the conversation, Chair Fiona Couper, CMO, Teamspirit, outlined the transformation expectations that generativeAI will have on financial services brands and their communication remain high.

According to Gartner[1] by 2025, 30% of marketing messages will be AI generated, up from less than 2% in 2022. While over 70% of consumers expect AI to negatively impact social channels, so much so that by 2025 50% of consumers are expected to significantly limit their use of major platforms due to a decay in the quality of social media sites - which for marketers, means creating new search and channel strategies for lead gen.

In financial services specifically, use of genAI is widening across operations, with banks’ spending on genAI, as estimated by Juniper Research, set to rise from the current estimate of £4.5bn in 2024 to hit £64.3bn globally in 2030[2].   

Chipmaker NVIDIA’s State of AI in Financial Services report found that 46% of respondents reported an improved customer experience as a result of using AI[3].  The same report found:
- 26% of fs companie are using Natural language processing (NLP) or large language models (LLMs) 
- 23% are utilising recommender systems / next-best action 
- 12% are using AI for their environmental, social, and governance (ESG)
- 12% use it for fraud detection across anti-money laundering and know your customer.

Headline makers in the past few months include:
- NatWest’s AI chatbot, Cora, handled 10.8m queries in 2023 and the bank is rolling out Cora+ with IBM which promises to deliver a more seamless ‘human’ experience’ using the latest AI innovations[4].
- In May this year JPMorgan Chase launched IndexGPT, a ChatGPT-like A.I. that builds thematic indexes currently for institutional clients[5], which they believe will result in an increase in client engagement and broader adoption of quantitative techniques applied to thematic indexes.
- Bunq, the EUS 2nd largest neobank, is expecting to automate 90% of operations with the help of AI and leading to new hires in areas such as AI management and compliance and predictive analytics. 

The panel began by sharing a topline on how AI is being used in their respective businesses, with both Bidwells and Lifesearch building on use that began either during or coming out of Covid.  Repetitive tasks have been sped up, such as note taking, outlining case studies, content brainstorming, creative concept ideation and business development.  

For all, despite early concerns around usage in the businesses, the benefits have outweighed concerns and the challenge is more around ensuring its use and implementation is used well.  Human direction and judgement remains vital.

Conversation then turned to discussing how to create better tailored communications and ensure consumer confidence/trust.  Counteracting the risk of AI homogenisation the panel agreed on the need to use AI as a helpful tool rather than the finished product.

For DeepbrainAI who specialise in creating AI Avatars the business is wholly focused on helping to scale businesses and at a reduced cost.  Michael Jung shared a couple of examples from retail banks in Asia where avatars deliver an improved and more personalised experience.  

Ben Lee, Bidwells talked about how AI is helping across multiple areas of the business especially internally and could see how the use of avatars would be hugely beneficial in onboarding inductions for new employees, and in bringing key policies to life.  How much more engaging to watch an avatar of the Chief People Officer than wade through the dry text manual.  He also talked about the ability to start to interact within the text which will make life even easier.

Danielle Moore, Lifesearch, shared how she is focusing on the impact of Google’s Search Generative Experience (SGE) on search engine results pages (SERPs), exploring how this evolving technology reshapes digital marketing landscapes and enhances user interactions - particularly as google is no longer the search engine of choice for the younger generation who are happy to use social platforms such as TikTok.

From an agency point of view, James Maxwell, Teamspirit spoke of AI helping inform strategy, concepting and as a helpful copywriting tool to build on.  But reinforced that human guidance and differentiated brand personality are even more vital in an AI underpinned world.  Particularly for financial services where trust is so fundamental.

Questions from the floor ranged from how to ensure AI imagery and avatars still met Consumer Duty requirements (achieved by ensuring clear supers), distinction in a world of AI (by using AI as a helpful tool rather than the whole answer) to whether there remained some fear around its usage and giving ‘the machine’ too much power (reality is that careful trial is required).

In conclusion, the panel all felt that AI was a helpful addition that made their jobs easier and freed up time to allow them to focus on the more strategic and creative requirements.

If you’d like to discuss how to use your brand's personality to ensure a more distinctive brand experience in a world of AI, you know who to contact [hello@teamspirit.co.uk](mailto:hello@teamspirit.co.uk).

## Sources:

1. Gartner 2024 CMO Priorities
2. [https://www.cityam.com/theres-little-room-for-caution-banks-and-fintechs-gear-up-for-ai-revolution/](https://www.cityam.com/theres-little-room-for-caution-banks-and-fintechs-gear-up-for-ai-revolution/)
3. [https://resources.nvidia.com/en-us-state-ai-report/finance-survey](https://resources.nvidia.com/en-us-state-ai-report/finance-survey)
4. [https://www.cityam.com/theres-little-room-for-caution-banks-and-fintechs-gear-up-for-ai-revolution/](https://www.cityam.com/theres-little-room-for-caution-banks-and-fintechs-gear-up-for-ai-revolution/)
5. [https://www.pionline.com/money-management/jp-morgan-chase-launches-indexgpt](https://www.pionline.com/money-management/jp-morgan-chase-launches-indexgpt)


AI Applied. Let’s get real

### In today’s rapidly evolving business landscape, sustainability has transcended the realm of buzzwords to become a baked-in pillar of business strategies.

### However, sustainability in branding extends beyond just reducing carbon footprints; it entails the creation of a durable and enduring brand identity.

Ultimately, a brand’s assets need to be adding value at every touchpoint. Having a strong brand ecosystem, or brand world, that enables a brand to show up consistently, is definitely worth it – in fact consistent branding has been proven to lead to a 23% increase in revenues (1).

But as technology, particularly Artificial Intelligence (AI), continues to redefine various aspects of our lives, it has emerged, perhaps inadvertently, as a catalyst to fortifying the foundations of sustainable brands.

After all, this is an era of urgency. From the 24-hour news cycle, to urgent global challenges, to the rapid onset of incredibly fast asset creation through AI, brands, brand owners and marketers can feel that they must always act in haste. But at what cost?

In this paper we are looking specifically at the effect of a rushed, AI-speed world on financial services brands, and how to create strong brands built to adapt and last. We explore the key components of what makes a strong brand in this new world, and how to maximize brand assets.

*__“In an AI world, a strong brand has never been more vital.”__*

Read more in our latest report: [Sustainable Brands in the Era of Urgency](https://assets.ctfassets.net/sxw14dxmazhg/3n2htqNs4tyWVTNbvGlyD2/f1d1441c2e38601d212a88d8badfddeb/Sustainable_Brands_in_the_era_of_urgency.pdf)
<br>

![sustainabilityreport-ts-2](//images.ctfassets.net/sxw14dxmazhg/6Cbk8FNXEwXwbrngtOeYl1/c88cbfee4218fdfbb24d39dbdf9f15d4/sustainabilityreport-ts-2.png)

__Sources:__

1. Strategies to go digital so that your brand survives. Forbes September 2022.

As we navigate the era of urgency and rapid technological advancements, it is imperative for financial services brands to re-evaluate and strengthen their brand assets to ensure sustainability. Read more in our latest report. 

Brands in the Era of Urgency

### In today’s rapidly evolving business landscape, sustainability has transcended the realm of buzzwords to become a baked-in pillar of business strategies.

### However, sustainability in branding extends beyond just reducing carbon footprints; it entails the creation of a durable and enduring brand identity.

Ultimately, a brand’s assets need to be adding value at every touchpoint. Having a strong brand ecosystem, or brand world, that enables a brand to show up consistently, is definitely worth it – in fact consistent branding has been proven to lead to a 23% increase in revenues (1).

But as technology, particularly Artificial Intelligence (AI), continues to redefine various aspects of our lives, it has emerged, perhaps inadvertently, as a catalyst to fortifying the foundations of sustainable brands.

After all, this is an era of urgency. From the 24-hour news cycle, to urgent global challenges, to the rapid onset of incredibly fast asset creation through AI, brands, brand owners and marketers can feel that they must always act in haste. But at what cost?

In this paper we are looking specifically at the effect of a rushed, AI-speed world on financial services brands, and how to create strong brands built to adapt and last. We explore the key components of what makes a strong brand in this new world, and how to maximize brand assets.

*__“In an AI world, a strong brand has never been more vital.”__*

Read more in our latest report: [Sustainable Brands in the Era of Urgency](https://assets.ctfassets.net/sxw14dxmazhg/1v5ywOij3YHUVvEJV3wvyy/1bcdae7f49bf548cfab9ac23ff7d15da/US_Brands_in_era_of_Urgency_Report.pdf)
<br>

![sustainabilityreport-ts-2](//images.ctfassets.net/sxw14dxmazhg/6Cbk8FNXEwXwbrngtOeYl1/c88cbfee4218fdfbb24d39dbdf9f15d4/sustainabilityreport-ts-2.png)

__Sources:__

1. Strategies to go digital so that your brand survives. Forbes September 2022.

Venture Capital firm Northzone, which has previously backed the likes of Spotify, iZettle and London-based fintech start up MarketInvoice, has just closed its Europe-focussed eighth fund at a capped value of [€300million](https://techcrunch.com/2016/09/05/northzone-8/).

In a vote of confidence for London’s fintech scene, Northzone will be targeting early-stage start ups in London, Berlin and the Nordics.

They are particularly interested in fintech and e-commerce companies that offer mobile-first propositions, which aligns with the continuing trend for financial services to go mobile.

Venture Capital funds are still targeting London

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AI Applied. Let’s get real

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Brands in the Era of Urgency

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Brands in the Era of Urgency