As AI continues to evolve, it holds promise for transforming financial services. Andreas Lutz, CEO of Fides, a leader in global treasury solutions, shares insights on how AI is being integrated into their offerings, and the practical implications for clients.

Global Finance: How is Fides integrating AI into its treasury services, and what benefits can clients expect?

Andreas Lutz: At Fides, we acknowledge the potential of AI to significantly enhance financial services, particularly in optimizing treasury operations. We are actively working on incorporating AI to better serve our clients. By leveraging AI algorithms, we aim to provide advanced data insights and predictive analytics, which help clients make informed financial decisions, improve cash management, and reduce risk. AI-powered automation is streamlining processes, reducing manual intervention, and minimizing human errors in areas such as workflow management, fraud detection, and sanctions screening. We believe these advancements will position our clients at the forefront of their industries, and we have exciting new solutions in the pipeline.

Global Finance: How is Fides advising clients who might be eager to adopt AI out of fear of falling behind?

Andreas Lutz: There is a lot of uncertainty around AI adoption, with many companies feeling pressure to implement it quickly. While AI has significant potential, it’s crucial for companies to approach it thoughtfully and not simply adopt it because it’s a trending topic. Responsible and ethical AI use is essential.

At Fides, we are committed to a careful approach. We rigorously test both existing AI tools and our own developments to address potential issues and ensure that we provide secure, responsible AI solutions. Our focus is on addressing real client challenges and needs rather than following market trends. We work closely with clients to tailor AI solutions that align with their strategic goals.

Global Finance: Do APIs offer transformative potential, and how does this affect Fides?

Andreas Lutz: APIs have significant potential, but their adoption is progressing slowly. The financial landscape remains a mix of modern digital systems and traditional protocols like SWIFT and EBICS. Many banks are still integrating APIs, so maintaining compatibility with both old and new systems is crucial.

AI can help bridge the gap between current API capabilities and existing systems. It can translate and normalize data, making it compatible with various communication protocols, and enhance transaction categorization and risk assessment. At Fides, we support multiple connectivity options, including APIs, and provide integration with over 13,000 banks and financial institutions. Our services are designed to seamlessly connect with both legacy and modern technologies, and AI will further enhance our capabilities.

Global Finance: What risks are associated with increasing API use, and how can they be mitigated?

Andreas Lutz: As API use grows, so do security risks. APIs can be vulnerable to attacks that may compromise sensitive data, disrupt operations, or enable ransomware. It’s crucial for organizations to remain vigilant against such threats and ensure their teams are trained to handle potential security issues.

At Fides, we prioritize security and risk management. We implement robust encryption, multi-layered authentication, data separation, and regular security audits to protect sensitive information. Our services include risk mitigation tools like validation and sanctions screening, and we work closely with clients to ensure they understand and enhance their security measures.

Global Finance: How is Fides addressing AI-related risks?

Andreas Lutz: AI presents challenges related to ethics, security, data privacy, accuracy, and transparency. However, it also offers the potential to create powerful solutions that adapt to new risks. At Fides, we are focused on leveraging AI responsibly to address these concerns and continue to provide innovative and secure services.