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- [00:00]
Indiana University Narrator
Indiana University is shaping the future of healthcare. Advancing discoveries that become treatments for Alzheimer's, obesity, cancer and rare diseases. And training the providers trusted to deliver them from the lab to the clinic. IU powers medical breakthroughs and the talent behind them. See how IU solves. What's next? Iu Edu Impact.
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Commercial Announcer
Bloomberg Audio Studios Podcasts, Radio News.
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Interviewer
When you look at financial services in general, how they will be transformed but also disrupted. If you look at AI and private markets, where will the biggest transformation come from?
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Jane Fraser
So I think both are going to be transformational and frankly, financial leaders, we're all going to have to win at both of them. Here's, here's how we, here's how we're thinking about it. On the front is probably the biggest shift, but it's in the longer term. It's. We're just beginning to unleash the potential in AI at the moment, but it will be the rewiring of a lot of the global economy. It will be of financial services. And I think on AI we can see it in three different areas. The one that's more immediate, which is the operational benefits we're getting as we're replacing manual tasks, we're able to move data at greater speed, we're able to find anomalies faster. So the operational side, I think we're all beginning to see bottom line benefits. You have the revenue side, the one that's exciting immediately is personalization and people then always say, oh, financial services, empathy. I think this is our opportunity to make some of the changes there, but it will change business models, it will change revenue models. I don't think we quite know how yet. And then you've got the risk dimension. And that's one where it's going to enable us to manage risk better, but it's also going to create new ones. And the bottom line for us all on AI is whether it's going to happen. It's how thoughtfully and well do we execute it in our businesses. Private credit, that one is happening pretty quickly. Right now we've got to decide is this a tug of war or a team sport? In private credit, as banks, it's usually more fun to play in a team sport, but there's some areas where there's a zero, some game. There's other areas where it's the benefit of both. Right now, it's not a huge part of the business model, but the inflection point is where private credit and AI meet. And I think that's what we're seeing in particular in the kingdom Is how is the AI infrastructure getting built out? How are we going to finance some of the models that are out there? What's happening to the power equation? And this is where it's not easy. This is not cooker cutting finance. So. So banks play an important role in structuring as you sure you'll hear from all of us, different deals we're working on and private credit is important part of the equation. The world needs both of us. So let's try and make this more of a team sport and as big a pie as possible. Let's not be complacent. There's going to be winners and losers.
- [03:14]
Interviewer
I like the way you put it. Is a team sport or not? Venkat, what's your take on private markets? But also I because I could accelerate really quickly.
- [03:22]
Venkat
As always, it's hard to follow Jane because she said all the good things but I do think on AI just to add first, it represents obviously a great general purpose technology which can have a transformative effect not only in how we run ourselves, but how we present ourselves to our customers with empathy, hopefully equally, when we think about our workforce and our colleagues, it is an opportunity and a risk. It's an opportunity to create a much more dynamic, enabled, empowered workforce and help it manage the transition because some jobs will transition. It's a risk because if you don't pay attention to it then you can end up with divisions in the workforce and more disruption than you'd like on private credit. At one level, this is something that banks have been doing all the time, right? And when we think about a definition, at least the definition I like to use is that it's credit that does not come through banks and does not come through the public market. But it comes through lots of recognized players, insurance companies, asset managers directly, including what we call the private credit funds. And I think it should be a team sport. I think there are some things banks will not find it appropriate to do under the capitalization rules. Others should do it because the world needs the credit and banks should work with them, either by financing them or even working jointly directly. But that's the best way to get credit into the economy.
- [04:49]
Indiana University Narrator
Indiana University is shaping the future of health care. Advancing discoveries that become treatments for Alzheimer's, obesity, cancer and other rare and complex diseases. And training the next generation of providers, doctors and nurses trusted to address health challenges with skill, compassion and purpose. From the lab to the clinic, from research teams to patient care, IU talent is driving medical innovation, improving health outcomes and strengthening communities. See how IU solves. What's next? Iu.
- [05:21]
Commercial Announcer
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