Latest news with #Finextra
Finextra
an hour ago
- Business
- Finextra
The AI energy crisis: Why chatbots are using up our drinking water
0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Just this week, the Trump administration has introduced its new 'AI Action Plan' with the direct aim to speed up the adoption of AI and the build of more data centres, all the while cutting regulation to enable this. As the world continues its AI race, how much is too much? Concerns have long been raised about the amount of energy AI uses. The International Energy Agency has stated that, by 2030, electricity demand for AI-optimised data centres is forecast to more than quadruple. Similarly, increasingly large amounts of water are required to produce the energy needed to power AI. On top of that, data centres themselves have started using water in order to cope with the boom in AI usage. Historically, data centres have used air cooling systems, which was sufficient to cool systems up until AI came along. Now, air cooling is no longer enough to prevent systems from overheating. Generative AI uses up to 33 times more energy than machines running task-specific software, which is why liquid cooling mechanisms have been implemented in many data centres. The problem with liquid cooling, however, is that it relies on clean water in order to prevent corrosion to the systems or the growth of bacteria. The solution: Drinking water. And while the water used in the cooling mechanism is designed to be re-introduced into the natural water source, up to 80% evaporates in the process. 'What this means is that this type of water is gone, and we are extracting water from a water circuit that is necessary for irrigation, for human consumption and hygiene,' Lorena Jaume-Palasí, founder of the Ethical Tech Society, commented in the BBC. Dr Venkatesh Uddameri, an expert in water resources management, is additionally quoted stating that a 'typical data centre can use between 11 million and 19 million litres of water per day, roughly the same as a town of 30,000 to 50,000 people.' Data centres put pressure on the water sources of local communities While many tech giants like Microsoft, Facebook and Google have pledged to be water neutral by 2030, AI has changed the equation. One of the latest concerns has been Elon Musk's self-proclaimed 'largest data centre in the world' for xAI, Colossus, build in Memphis in 2024. Apart from sidestepping environmental laws, the 'expected water demand is 5+ million gallons per day in an area where arsenic pollution threatens the drinking water supply,' according to a local non-profit concerned about the data centre's environmental impact. Memphis is not alone. Research by Bloomberg News found that in the US, 'two thirds of new data centres built or in development since 2022 are in places already gripped by high levels of water stress.' In the UK, Prime Minister Starmer aims to become a world leader in AI, having pledged a £2 billion investment to data centre growth and digital skills development. However, some of these centres are proposed to be built in areas already under threat of water shortages. On top of that, the government has designated data centres as 'critical national infrastructure', which means they will face fewer planning restrictions than traditional developments. How do we fix the AI water problem? There is good news as well, which is that companies are already working on technology to be more water efficient. Closed-loop and immersion cooling are being adopted by companies like Microsoft in order to implement zero-water cooling systems. Closed-loop cooling eliminates the need for evaporating water, allowing systems to re-circulate coolants continuously. Immersion cooling is another technique applied, which sees servers submerged in non-conductive fluids. According to DataCentre, 'these fluids either circulate passively or follow a two-phase process, evaporating to absorb heat and condensing for reuse. There are no pumps, fans or water involved.' Communities around the world are urging their governments to ensure water and energy are part of the equastion. In the UK, the Royal Academy of Engineering has asked the government to ensure tech companies accurately report how much water and energy their data centres are using as the country gears up to become a 'world leader in AI.' The report also asks to introduce sustainability requirements for all data centres, including the move to zero-water cooling in order to preserve precious fresh water reserves. The crucial step is ensuring the water problem is being considered industry-wide, and that companies are being held accountable for their water and energy usage, as well as their dedication toward reducing their environmental impact. Unchecked AI expansion will only move us closer to Day Zero.
Finextra
7 hours ago
- Business
- Finextra
CME completes first phase of testing on Google Cloud
Trading venue CME Group has revealed more about its plan to introduce tokenisation services via its link up with Google Cloud 0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. Back in March, CME Group announced that it was extending its deal with Google Cloud to include a number of use cases involving tokenisation and wholesale payments. Four months on, the company has issued an update, stating that it has completed the first phase of integration and testing of Google Cloud Universal Ledger which is expected to be used for collateral, margin, settlement and fee payments. Speaking on a quarterly earnings call, CME's chief operaitng officer and global head of clearing said: "We've now entered the second phase of testing, focusing on settlement. We are very optimistic about our ability to bring solutions to market in 2026." Sprague added that it was too early to identify specific use cases. 'We're thinking about tokenizing cash and other noncash assets for our current ecosystem, not really looking at the clearing space to start."
Finextra
7 hours ago
- Business
- Finextra
Australians embrace digital banking as digital wallet use surges
Australian consumers are adopting digital banking services in increasing numbers with 99.3% of transactions taking place over digital channels, including A$160bn in payments made via mobile wallets. 0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The increased use of digital wallets is the standout statistic from the latest report published by the Australian Bankers' Association (ABA) on consumer trends. According to the ABA, more than four billion payments were made via mobile wallets in the last year, which is 11 times more than the 353 million ATM cash withdrawals which were valued at A$106bn. Digital banking interactions have increased by 70% since 2019 while the value of mobile payments has increased 23-fold in the same time period including a 28% increase in the last year alone. Meanwhile ATM cash withdrawals and branch banking have continued to decrease with mobile wallet transactions overtaking ATM withdrawals in 2023. According to ABA chief Anna Bligh, the statistics show Australian consumers' "overwhelming appetite for speed and convenience". 'We are undergoing a massive transformation in how people bank in this country,' said Bligh. 'Making payments with your phone is also now the norm for millions of customers. "Mobile wallet usage continues to surge and is closing in on the use of physical cards or cash." Yet despite the clear preference for digital banking channels, Bligh and the ABA insist that there remains a place for the use of cash. "Digital is now the norm, yet banks continue to invest in face-to-face banking options for Australians who want to use them," said Bligh. "Australia's banks maintain a denser commercial branch network than comparably urbanised OECD peers." The report comes six months after the ABA called for the Australian government to introduce regulation for the country's rapidly growing mobile wallet market. 'With mobile wallets becoming a dominant force in Australia's payments architecture - it's only fair that global tech companies are subject to the same oversight and consumer protection laws as the rest of the payments system," said Bligh back in February.
Finextra
9 hours ago
- Business
- Finextra
Private credit fintech Credibur raises $2.2m
Berlin-based FinTech Credibur has secured $2.2 million (€1.85 million) in pre-seed funding to launch its credit infrastructure platform. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The round is led by European FinTech VC Redstone, followed by Silicon Valley's MS&AD Ventures and Canadian VC Inovia. The round also includes several prominent business angels from the FinTech scene, including Malte Rau, Founder of Pliant, Topi Co-Founders Estelle Merle and Charlotte Pallua, along with super angel Bjarke Klinge Staun. From Manual Spreadsheets to Automated Solutions Nicolas Kipp, Founder and CEO of Credibur, knows the industry's challenges firsthand. As Co-Founder of embedded lending platform Banxware and Chief Risk Officer at Ratepay, he witnessed daily how funding and reporting processes can become operational bottlenecks that hinder growth. With Credibur, Kipp and his 10-person team are developing infrastructure that solves a central problem in the structured credit portfolio business between non-bank lenders and institutional capital providers: it automates complex, Excel-based workflows and provides all critical decision-making data in real-time. "Debt facility management is the underestimated Achilles' heel in non-bank lending – operationally complex and technologically neglected. With Credibur, we're digitalising this final frontier in the value chain and efficiently connecting institutional capital with new credit models," Kipp explains. The new platform for debt facility management goes far beyond traditional reporting tools, orchestrating the full lifecycle of institutional funding: from structuring through reporting and contract management, to capital calls and the administration of special purpose vehicles (SPVs). The solution targets alternative lenders such as buy now, pay later providers, factoring and leasing companies, as well as institutional investors, including asset managers, debt funds, and family offices. Private Credit: A High-Growth Market Facing Hurdles The majority of institutional capital providers continue to rely on manual processes or outdated systems to this day. Credibur replaces these with a modular API-and-AI-first infrastructure. This enables a more informed risk assessment and improved decision-making in the credit business. Time-consuming, error-prone Excel lists managing millions of euros become a thing of the past, as data is delivered directly from systems via interfaces. The volume of credit outside the banking sector is growing rapidly. Last year alone, global private credit volume reached approximately €2.1 trillion in assets under management according to the European Central Bank (ECB), with more than 20 percent (€430 billion) in Europe. With his experience in the structured finance business, Founder Nicolas Kipp positions Credibur as the infrastructure layer between alternative lenders and institutional investors – and as a key enabler for streamlining debt facility management. "Nicolas has already proven with Banxware and Ratepay that he can master the complexity of the credit business. With Credibur, he's now solving the next fundamental problem: manual debt facility management is slowing growth across the entire private credit sector. His infrastructure can finally digitalise this €430 billion industry in Europe", says Timo Fleig, Managing Partner at FinTech VC Redstone. "While everyone's talking about private credit as an asset class, many overlook the operational hurdles behind it. Credibur creates the technical infrastructure that institutional investors need to efficiently invest in this growing market. This is a classic infrastructure play with enormous scaling potential," adds Jon Soberg, CEO and Managing Partner at MS&AD Ventures. With this funding round, Credibur is emerging from stealth mode and is already launching with its first pilot customers. The fresh capital will flow into technical development of the API-and-AI-first infrastructure, customer acquisition, and team expansion.
Finextra
9 hours ago
- Business
- Finextra
Mosaic launches cyber insurance for digital assets companies
Mosaic Insurance has entered the digital asset market, launching a combined cyber and financial institutions (FI) crime product that provides robust protection to the rapidly growing, yet historically underserved sector. 0 This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. The new modular product suite offers stand-alone or blended coverage across cyber, technology errors and omissions (E&O), and crime—tailored to complex, evolving risks faced by digital asset businesses. The solution provides up to £/$/€10 million in capacity for cyber and tech, and up to £/$/€5 million for crime exposures, underwritten via Mosaic's worldwide agency network on behalf of its Lloyd's Syndicate 1609 and backed by its A+-rated global carrier partners. The solution is designed for a broad spectrum of digital asset clients, spanning fast-growing innovators to mature market participants and including exchanges, custodians, trading platforms, blockchain analytics firms, miners, exchange-traded funds (ETF) structures, real world asset (RWA) platforms, and wallet providers. These businesses have often faced fragmented market responses, with narrow cover, limited capacity, or declinations driven by perceived volatility or regulatory uncertainty. 'Mosaic is bringing the first comprehensive Lloyd's A+-rated cyber, tech E&O, and crime capacity to the digital asset space—it's a true differentiator, delivering a level of trust and financial strength that has been lacking in this space,' said Brian Bonkoski, Global Head of Cyber at Mosaic. 'With global regulatory licences and underwriting hubs in London, the US, Bermuda, Canada, Europe, Dubai, and Singapore, we offer seamless coverage to clients, regardless of domicile or the jurisdictions they serve.' Line sizes and policy structure mirror those accessible to Mosaic's non-digital asset clients and the product offers cyber, tech, and crime coverage from a single underwriting platform, removing common coverage gaps. The launch is underpinned by Mosaic's first strategic partnership in the sector with Native, a specialist broker in digital assets. Through the 'Native Risk Collective,' companies which integrate approved vendors and services that materially improve their risk posture can access enhanced coverage and more competitive premiums. The collaboration reflects Mosaic's commitment to forming sustainable partnerships that advance insurance solutions for emerging industries. 'Digital asset clients have long needed insurance that understands their risks, offers meaningful capacity, and brings a long-term view,' said Mosaic's Kieran Quigley, VP, Underwriter, Cyber, who spearheaded the firm's entry into the sector. 'We've listened to clients and brokers and built solutions that reflect the ambition and growing sophistication of this space. We're proud to support innovators driving the next wave of global economic change.' 'The market's been calling for a smarter, joined-up approach to underwriting digital asset risk,' added Tom Dilley, Global Head of Financial Institutions for Mosaic. 'Mosaic is answering that call with a credible, thoughtful solution.' Cyber and financial institutions liability are two of seven lines of specialty business at Mosaic; the others include environmental liability, transactional liability, political risk, political violence, and professional liability.
