This presentation was made on an Awarenss Seminar on Artificial Intelligence Disrupting Financial Industry, held on 29-September-2018 at National Incubation Center, NED University Karachi, Pakistan.

1. Sayyid Mansoob Hasan
• FCMA, ACIS, Accredited Mediator, Certified Lead Assessor
• Have over 27 years of professional experience
• Managing Partner MANSOOB & CO.
Cost and Management Accountants
Management, Corporate and Taxation Consultants
Mediators and Arbitrators
• Chairman – Small Dispute Resolution Committee, Karachi (Sindh &
Baluchistan) formed under Insurance Ordinance, 2000
• Member – Permanent Panel of Arbitrators Pakistan Stock Exchange
• Chairman Taxation Commission International Chambers of Commerce
Pakistan
• President – Circle of Voice Trust and Young Leaders Club
• General Secretary – Help International Welfare Trust
• Former Vice President – Pakistan Institute of Public Finance
Accountants
• Former Chairman – SME Board ICMA Pakistan
Contact: mansoob@mncglobal.com
Website: www.mncglobal.com

2. A.I., Financial Industry and Professionals

3. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Financial Industry
PAST PRESENT FUTURE
Passive
Manual records
Few
Highly conservative
Physical
Voice based trading
Reforms
Proactive
Strict regulations
PAST
Private banks
NBFCs
Universal banking
Destroys NBFCsFIs
Stock Ex.
3 exchanges
National clearing
CDC
Electronic trading
Proactive
Strict regulations
Private banks
Few NBFCs
Universal banking
1 exchange PSX (DM)
National clearing
CDC
Electronic trading

4. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Funding
PAST PRESENT FUTURE
Few lending products
Highly conservative
Political lending
Large groups
Capital securities
PAST
Project finance
Trade finance
Mortgage finance
Consumer finance
Universal banking
FIs
Stock Ex.
Capital securities
Debt securities
Project finance
Trade finance
Mortgage finance
Consumer finance
Universal banking
Microfinance
Capital securities
Debt securities
Elementary funding
mechanism
Semi regulated
funding mechanism
Regulated Islamic
Finance
Semi regulated
funding mechanism
Regulated Islamic
Finance

5. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Finance Professionals
PAST PRESENT FUTURE
Government
employees
Elementary banking
Accounting
Reconciliation
Accounting
Operations
Regulations
Supervision
Monitoring
PAST
Financial products
Accounting
Reconciliation
Corporate financeFIs
Stock Ex.
Accounting
Operations
Corporate finance
Regulations
Supervision
Monitoring
Accounting
Operations
Corporate finance
Electronic settlement
Compliances
Financial products
Accounting
Compliances
Corporate finance
Microfinance

6. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Mobile banking changes traditional banking
• Funds transfer
• Bills payment
• E-commerce
• Mobile apps by traditional banks

7. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Future of Financial Industry
Passive
Manual records
Few
Highly conservative
Physical
Voice based trading
Reforms
Proactive
Strict regulations
Private banks
NBFCs
FIs
Stock Ex.
Electronic trading
National clearing
3 exchanges
Proactive
Strict regulations
Private banks
NBFCs (destroyed)
Electronic trading
National clearing
1 exchange
Demutualized
F
R
A
U
D
S
F
R
A
U
D
S
T
R
U
S
T
D
E
F
I
C
I
T
Banks
NBFCs
Electronic Exchanges
Fintech Companies
PAST PRESENT FUTUREPAST

8. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Funding
Highly conservative
Political lending
Large groups
Capital securities
Project finance
Trade finance
Mortgage finance
Consumer finance
Universal banking
FIs
Stock Ex.
Capital securities
Debt securities
Project finance
Trade finance
Mortgage finance
Consumer finance
Universal banking
Capital securities
Debt securities
Traditional financing
Islamic financing
Venture capital
Private equity
Crowdfunding
Community funding
Funding on social rating
Standard exchange
SME exchange
PAST PRESENT FUTUREPAST
Elementary funding
mechanism
Semi regulated
funding mechanism
Regulated Islamic
Finance
Semi regulated
funding mechanism
Regulated Islamic
Finance

9. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
• Major job disruption
• 133 million roles emerging
• 75 million roles getting redundant
• Roles that are going to be redundant by
2022
• Factory workers, cashiers, drivers,
mechanics, financial analysts, lawyers,
auditors and accountants
World Economic Forum Report
Future of jobs 2018-22

10. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Finance Professionals
Government
employees
Elementary banking
Accounting
Reconciliation
Accounting
Operations
Regulations
Supervision
Monitoring
Financial products
Accounting
Reconciliation
Corporate financeFIs
Stock Ex.
Accounting
Operations
Corporate finance
Regulations
Supervision
Monitoring
Accounting
Operations
Corporate finance
Electronic settlement
Financial products
Accounting
Reconciliation
Corporate finance
 CFO
 Compliance
 Risk management
 Business analyst and
modelling
 Innovative corporate
finance
 Transaction/data
capturing, analytics
PAST PRESENT FUTUREPAST
 Regulations
 Supervision
 Monitoring

11. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
• Take over repetitive tasks
• Decision making tool
• Predictive modelling
• Fraud detection
• Customer churn / behavioral analysis
• Credit scoring
• Target marketing
Potential of AI / Machine Learning
in Financial Industry

12. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
• Traditional business mindset – The Seth
• Parallel (black) economy
• Unethical market practices
• Data collection (Big data)
• Regulatory framework
• Taxation authorities
• Coping with international
developments
Challenges

13. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Financial industry with technology
Technology companies in
financial business
Major paradigm shift

14. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
11 / 11 - 2017of Alibaba
• Total sales of 24 hours USD 25.3 billion
• Pakistan’s total exports in 2017-18 were USD
24.77 billion
• 90% of all orders were through mobile
• Total orders processed 812 million
• Ali pay processed 1.5 billion payments
• At peak Ali Baba Cloud processed 325,000
orders per second

15. SAYYID MANSOOB HASAN
MANSOOB & CO.AI, FINANCIAL INDUSTRY AND PROFESSIONALS
Some more…
Total revenues for the year 2017
• Samsung USD 223 billion
• Apple USD 215.6 billion
• Pakistan total exports in 2018
were USD 24.772 billion