# What’s better than OpenAI? Developers shop for alternatives
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-03-07
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: OpenAI Alternatives: AI Startups Embrace Competitors for
Meta Description: Explore how startups and investors are embracing competitors to OpenAI, leading to a shift in the generative AI landscape and a push for diversification in
URL: https://financedigest.com/whats-better-than-openai-developers-shop-for-alternatives-2html

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Whilst finance and technology have been linked ever since the first ATM in the late 1960s, the advent of mobile internet has truly changed the game for financial services technology, or “Fintech”, as it’s commonly known.

Often deemed a decentralising force, many Fintech companies are seen as directly oppositional to large, traditional banks and offer radically different, user-centric, experiences of things like mortgages, insurance, and currency exchange.

In many ways, Fintech has thrived because of its willingness to capitalise on user experience. Much in the same way that activities like shopping, online dating, and scheduling taxi-cabs have been revolutionised through mobile applications, Fintech’s accessibility, its transparency, and its attempts to keep charges to a minimum (all things banks have a bad reputation for), have led to similar disruption for the [financial sector](https://www.financedigest.com/big-data-analytics-fraud-prevention-in-the-financial-sector.html "BIG DATA, ANALYTICS & FRAUD PREVENTION IN THE FINANCIAL SECTOR").

![Darren Hockley](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/darren-hockley-450x329-1737287584855-compressed.jpg)

Darren Hockley

It’s true that Fintech offers clear opportunity for a new, more efficient, effective, and – dare I say – human [approach to finance](https://www.financedigest.com/uks-finance-minister-sets-out-new-economic-approach-to-finance-bosses.html "UK’s finance minister sets out new economic approach to finance bosses"), but it can also represent hidden risk. It could be argued that the speed, intangibility, and global nature of digital finance is in danger of creating unforeseen regulatory gaps as agencies like the Financial Conduct Authority (FCA) in the UK [rush to keep pace.](https://www.finextra.com/newsarticle/30417/uk-calls-for-global-fintech-regulations)

We can see these concerns play-out in the media at the moment. For example, self-described ‘beyond banking’ app, Revolut, [hit the news recently](https://www.telegraph.co.uk/technology/2019/02/28/revolut-failed-block-suspicious-transactions/) amid non-compliance accusations over money laundering.

Whilst Revolut vehemently denies any wrongdoing and CEO, Nik Storonsky, has clarified that the app simply reverted to its original anti-money laundering screening system rather than remove the function altogether (due to the technology recording too many false positives), the predicament nevertheless shed light on the internal struggle that exists for digital finance between customer satisfaction, speed, and matters of compliance.

The truth is, although many new finance apps appear more human (in that they offer an open, honest, and jargon-free experience without the lengthy approval processes that banks enforce), they are, in fact, [artificially intelligent](https://www.financedigest.com/how-to-unlock-greater-value-from-artificial-intelligence.html "How to unlock greater value from artificial intelligence").

That means that it’s often complex algorithms – not humans – that process customer details and translate them into requirements and decisions for things such as mortgages, lending/borrowing, and what constitutes a [safe or unsafe money](https://www.financedigest.com/your-money-is-safe-but-your-data-might-not-be.html "YOUR MONEY IS SAFE, BUT YOUR DATA MIGHT NOT BE") transfer.

In many ways, the mechanisation of everyday financial services is revolutionary (it has been likened to the [industry’s transformation](https://www.financedigest.com/signal-transformer-market-one-the-most-booming-industry-in-upcoming-years-due-to-global-demand-in-industry-by-2027.html "Signal Transformer Market| One the Most Booming Industry in Upcoming Years Due to Global Demand in Industry by 2027") in the 1980s at the advent of computerised banking). Machine learning and AI mean that computers can write and [test rules](https://www.financedigest.com/new-china-covid-rules-spur-concern-as-some-cities-halt-routine-tests.html "New China COVID rules spur concern as some cities halt routine tests") themselves. They can learn, for example, to make mathematically perfect lending decisions in seconds – possibly putting an end to unscrupulous and predatory lending practices (like the sort that contributed to the 2008 financial [crash)](https://www.financedigest.com/g20-watchdog-homes-in-on-decentralised-finance-after-ftx-crash.html "G20 watchdog homes in on decentralised finance after FTX crash").

On the other hand, there is a [cost of sorts used to generate this innovation](https://www.financedigest.com/cost-effective-digitized-innovation-to-drive-the-immune-thrombocytopenia-treatment-market.html "Cost-effective Digitized Innovation to drive the Immune Thrombocytopenia Treatment Market") and, for Fintech, this usually comes in the form of data. [Big Data](https://www.financedigest.com/banks-struggle-to-harness-big-data.html "BANKS STRUGGLE TO HARNESS BIG DATA") – such as the data gathered continuously by your smart phone (and which can be used to predict human behavioural patterns)– fuels Fintech in numerous ways. For example, financial technologies use our [personal data](https://www.financedigest.com/data-privacy-and-navigation-how-our-personal-data-is-used-in-navigation-apps.html "Data Privacy and Navigation: How our personal data is used in Navigation Apps.") to customise user experience, offering banking recommendations based off our spending patterns.

Fintechs also use data and [predictive analytics](https://www.financedigest.com/transportation-predictive-analytics-and-simulation-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2027.html "Transportation Predictive Analytics And Simulation Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2027") to make credit and lending decisions, to manage risk, detect fraud, to fuel marketing, as well as devise customer retention/loyalty programmes. We shouldn’t underestimate just how much [Fintech relies on access](https://www.financedigest.com/matchly-the-us-fintech-platform-that-enables-employees-to-access-their-401k-employer-match-raises-1-7m-in-pre-seed-round.html "Matchly, the US fintech platform that enables employees to access their 401(k) employer match, raises .7m in Pre-Seed Round") to data, and what that data can be used for. After all, Big [Data](https://www.financedigest.com/avoiding-a-big-data-car-crash-how-to-organise-your-data-to-detect-fraudulent-claims.html "Avoiding a big data car crash: How to organise your data to detect fraudulent claims") begs Big questions:

- What happens if [data security](https://www.financedigest.com/cyber-security-data-re-assurance.html "Cyber Security: Data ‘Re’-Assurance") is compromised?
- Who (or what) is held [accountable by regulatory watchdogs for decisions made](https://www.financedigest.com/covid-19-has-made-your-customer-accounts-more-valuable.html "Covid-19 has made your customer accounts more valuable") by robots?
- Just how do Fintech firms protect our consumer rights?

Champions of Fintech argue that consumers, indeed, society, will benefit from increased access to more personalised, more cost-effective finance products that encourage fair [competition and inspire change](https://www.financedigest.com/foley-catheters-market-pin-point-analysis-for-changing-competitive-dynamics.html "Foley Catheters Market: Pin-Point Analysis For Changing Competitive Dynamics"). However, those who are more sceptical argue that more data naturally equals more risk, pointing to cyber-security attacks like [the one suffered by Tesco bank](https://www.theguardian.com/business/2018/oct/01/tesco-bank-fined-cyber-attack-fca) in late 2018. [Tesco was fined £16.4M by the FCA for the breach which saw 34 unauthorised online](https://www.financedigest.com/tesco-says-online-services-back-up-after-interference-attempt.html "Tesco says online services back up after interference ‘attempt’") transactions take place.

Others question FinTech’s use of automated decision software, arguing that it could actually increase the risk of financial [exclusion as customers with little or no digital](https://www.financedigest.com/digitized-exclusivity-to-be-the-epicenter-of-primary-peritoneal-cancer-therapeutics-market.html "Digitized Exclusivity to be the epicenter of Primary Peritoneal Cancer Therapeutics Market") footprint could become ‘invisible’ to applications that rely on data to profile people and assess risk. Similarly, [customers might be unfairly profiled due](https://www.financedigest.com/why-due-diligence-is-so-important-for-direct-debit-customers.html "Why due diligence is so important for Direct Debit customers") to their spending or shopping habits being similar to someone else’s that has been refused credit in the past. Lumping people together like this suddenly doesn’t [sound all that human](https://www.financedigest.com/u-n-climate-change-report-sounds-code-red-for-humanity.html "U.N. climate change report sounds ‘code red for humanity’") …

With so much digital information available for Fintech firms to use and analyse, it is imperative that regulatory bodies like the FCA continue to question how [Big Data](https://www.financedigest.com/the-benefits-of-big-data-how-to-convince-your-cfo.html "THE BENEFITS OF BIG DATA – HOW TO CONVINCE YOUR CFO") is being used, and for firms to implement safeguards that ensure data is processed ethically and lawfully. This is particularly true under GDPR (or the UK’s implementation of it, the [Data Protection](https://www.financedigest.com/how-financial-organisations-can-stay-protected-from-financial-data-breaches.html "How Financial Organisations can Stay Protected from Financial Data Breaches ") Act 2018). Under this legislation, data [controllers must:](https://www.financedigest.com/psd2-merchants-must-regain-checkout-control-through-delegated-authentication.html "PSD2: Merchants Must Regain Checkout Control Through Delegated Authentication")

- Be transparent about how they intend to use data (including putting measures in place to [track and audit data use and for customers to access records](https://www.financedigest.com/britain-on-track-for-record-black-friday-sales.html "Britain on track for record Black Friday sales") about how their data is being used).
- Obtain informed consent from data subjects to use their data in the manner they want to. Organisations risk breaching data [privacy](https://www.financedigest.com/how-to-navigate-multiple-data-privacy-regulatory-frameworks.html "How to navigate multiple data privacy regulatory frameworks") and data security laws if they carry-out group or individual profiling on data they only have implied consent for.
- Ensure that [automated decision software](https://www.financedigest.com/guide-to-the-most-affordable-marketing-automation-software.html "Guide To The Most Affordable Marketing Automation Software") is fair and unbiased.
- Protect data integrity by using only accurate data and updating this data as and when required.

As we might suspect, underpinning [Fintech’s regulatory obligations is yet another innovation](https://www.financedigest.com/the-role-of-fintech-in-shaping-innovative-future.html "The Role of Fintech in Shaping Innovative Future"), aptly named Regulatory Technology, or “Regtech” for short. Whilst not a new concept, the continued crossover between regulation and [technology may well become crucial as Fintech](https://www.financedigest.com/financial-technology-fintech-how-to-navigate-the-latest-trends-and-innovations.html "Financial Technology (FinTech): How to Navigate the Latest Trends and Innovations") encounters ever more regulatory and reporting requirements in the future. Extending disruptive [digital technologies](https://www.financedigest.com/how-banks-can-use-digital-technology-to-become-more-sustainable.html "How banks can use digital technology to become more sustainable") to regulation, indeed, seems like the next logical step.

**Darren Hockley is MD of eLearning provider DeltaNet International. The company offers a wide range of** [**compliance courses**](https://www.delta-net.com/compliance) **for businesses.**

**Home page:** [**https://www.delta-net.com/**](https://www.delta-net.com/)


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