The firm specialized in alternative assets iCapital announced the launch of its first model portfolio available to investors in Latin America. This is the iCapital International Balanced Model Portfolio, to which two additional income- and growth-based solutions will be added in the coming months.
“iCapital’s model portfolios offer an innovative solution that complements traditional asset allocation frameworks. These portfolios simplify access to alternative investments through a single digital subscription workflow. Integrated with iCapital’s multi-investment workflow tool, they enable efficient and simultaneous processing of multiple investments, supporting a holistic approach to portfolio construction,” the company announced in a statement.
The portfolio offers three models designed to achieve specific portfolio outcomes: the balanced portfolio seeks enhanced total return with reduced volatility, the income portfolio seeks stable and attractive return, and the growth portfolio focuses on long-term wealth accumulation. Advisors can also leverage Architect, iCapital’s proprietary portfolio analysis tool, to better assess the impact of adding alternatives to traditional investments.
“iCapital’s model portfolios were created to meet the growing need among financial advisors to intelligently incorporate alternative investments and align with a broader asset allocation framework,” said Kunal Shah, managing director and head of private asset research and model portfolios at iCapital.
“This launch marks a key milestone in the expansion of iCapital’s global offering, enabling wealth managers around the world to build diversified portfolios efficiently,” said Wes Sturdevant, head of international client solutions for the Americas at iCapital.
“Model-based solutions are essential for the successful adoption of private markets, and this launch brings us closer to our goal of making them more accessible,” he added.
iCapital is a fintech founded in 2013 and headquartered in New York that operates a global platform to facilitate access to alternative investments (private equity, real estate, private credit, etc.) for financial advisors, wealth managers, and high-net-worth clients, simplifying processes, compliance, due diligence, transactions, and reporting.
It manages more than $200 billion in assets on its platform. More than 104,000 financial professionals have executed transactions on its platform over the past 12 months. The firm provides access to more than 1,630 funds offered by over 600 asset managers. iCapital has offices in multiple cities worldwide, including New York, London, Zurich, Lisbon, Singapore, Hong Kong, Tokyo, and Toronto, and is expanding into Australia and the Middle East.
UBS has incorporated Annick Iwanowski into its Coral Gables International branch as managing director, according to a post on LinkedIn by Catherine Lapadula, managing director/market executive of UBS Florida International. “We are delighted to welcome Annick Iwanowski to UBS as she joins our Coral Gables International branch,” wrote Lapadula.
“Annick brings a client-centered philosophy and deep industry experience, making her a trusted advisor to the most prominent families in Latin America as they navigate wealth preservation and growth in today’s dynamic financial landscape,” she added.
Catherine Lapadula also said in her post on the professional social network that at the Swiss bank they are “excited” about the professional’s return “to the UBS family and look forward to the impact she will have on our Florida International market,” she added.
Iwanowski worked for nearly a decade at J.P. Morgan Private Bank in Miami, where she held the position of managing director, team leader PEB & senior private banker. Previously, she served at Credit Suisse as director – private banking Latin America, and before that was first VP wealth management at SunTrust Bank. She also holds an MBA awarded by Johns Hopkins University.
After a nine-month pause, the Federal Reserve cut rates again at its latest meeting—a widely expected decision, though not without implications. Jerome Powell made it clear that the balance between inflation and employment—the core of the Fed’s mandate—has shifted, with growing concern over the deterioration of the labor market.
In line with his message at Jackson Hole, Powell emphasized that inflationary risks have moderated. The uncertainty generated by the Trump administration’s tariff policy remains, but the data points to contained inflation in both the short and long term. Metrics such as the “trimmed” CPI (Cleveland Fed) or the “sticky” CPI (Atlanta Fed) have risen since April, although two-year swaps indicate that the peak is already behind us.
The 5y5y swaps, meanwhile, remain stable and very close to the Fed’s long-term target, reinforcing the thesis that the monetary authority is comfortable with the projected level of inflation.
Labor Market: Tensions Beneath the Surface
The labor market is now at the center of attention. The sharp decline in immigration has reduced the supply of workers. And although demand has also moderated, the participation rate continues to decline, which keeps unemployment within the Fed’s comfort range… for now.
Revised forecasts for 2026 and 2027 anticipate lower unemployment, but the context remains fragile. The BLS revision placed job creation between March 2024 and March 2025 at 900,000 fewer workers than originally reported. The average number of new jobs created has fallen to just 29,000 per month over the past three months—well below the 70,000 to 100,000 needed to maintain equilibrium. This keeps the Fed on alert, with a high probability of further 25-basis-point cuts in October (87%) and December (92%), according to the futures market and the dot plot. Even so, only half of the FOMC members support this double cut.
Powell was clear: “Labor demand has weakened, and the recent pace of job creation appears to be below the equilibrium rate needed to keep the unemployment rate constant.”
Monetary Policy: The Path Toward Neutrality
Powell emphasized that there is no predefined plan: each decision will be made meeting by meeting. However, the new balance—less inflationary pressure and greater weakness in employment—suggests that rates should move toward neutral levels.
The Taylor Rule confirms that Fed Funds are still in restrictive territory. The projections implied in the futures and swaps curves appear reasonable, although the margin of error remains high due to macro uncertainty. Powell was unequivocal: “There is no risk-free path.”
Political Tensions and Mixed Signals
During the press conference, questions arose about the apparent disconnect between the economic projections—higher inflation and lower unemployment—and the moderate pace of monetary adjustment. Some interpret this as a sign of political pressure, particularly from President Trump.
The contrast between those favoring a moderate adjustment (Waller and Bowman, with 0.25%) and the more aggressive camp (Miran, proposing 0.5%) could be seen as a statement of independence in the face of external pressure. The Fed appears determined to distance itself from any partisan narrative.
Market Implications: Duration, Dollar, and Positioning
With the curve pricing in up to five additional cuts between now and December 2026, the risk now falls on those holding short dollar positions and long duration.
The OBBA fiscal plan, which balances stimulus with spending cuts, is favorable to growth in 2026. Monetary policy is easing while companies continue to report growth in earnings per share—an unusual combination at this stage of the cycle.
The normalization of the labor market following post-pandemic distortions reinforces the thesis that there will not be a demand-induced recession. The Atlanta Fed’s GDP model for the current quarter, in fact, anticipates an acceleration in growth.
Dollar Valuation and Flows Toward U.S. Assets
The dollar remains overvalued according to purchasing power parity, but its recent drop against the euro has been abrupt. Positioning and sentiment indicators suggest room for a consolidation of the euro’s gains.
Business confidence data in Europe, such as the ZEW or Sentix, deteriorated in September. This increases the likelihood of positive macroeconomic surprises in the United States, which could attract flows toward dollar-denominated assets.
From a technical standpoint, the positive divergence between price and the RSI (Relative Strength Index) reinforces this view of short-term support for the dollar.
The week draws to a close with attention focused on how markets have reacted to the latest monetary policy decisions: the Federal Reserve (Fed) confirmed a 0.25% cut, while the Bank of England (BoE) and the Bank of Japan (BoJ) kept rates unchanged. As a result, the U.S. dollar edged higher on Thursday after a volatile trading session, the British pound weakened, and the dollar/yen rate dropped more than 0.52% immediately after the decision.
According to the view of international asset managers, Western central banks are currently at a point in the cycle close to the neutral interest rate. “That is, the equilibrium point at which interest rates neither restrict nor stimulate economic activity and may be influenced by various factors, such as productivity growth or demographics,” explains James Bilson, global fixed income strategist at Schroders. Despite the great expertise of monetary institutions, it is very difficult to determine exactly what the neutral rate is. In Bilson’s view, if a central bank believes it has reached neutrality, it is likely to react to new data differently than one that believes it is still in restrictive territory.
The Fed: A Balancing Act
In that pursuit of balance, data continues to serve as a compass for monetary institutions and, of course, for the Fed. According to Jean Boivin, head of BlackRock Investment Institute, the outlook for Fed rate cuts depends on the labor market remaining sufficiently weak, making future policy highly data-dependent. In fact, Powell referred to this as a “risk management” cut, emphasizing the move as a form of insurance against growing signs of labor market weakness.
For Boivin, it is important to take a broader view. “Powell acknowledged that there is no risk-free path for policy and the ongoing tension in his dual mandate to support growth and contain inflation. We see the real tensions elsewhere: keeping inflation in check and managing debt servicing costs. Again, a weak labor market gave the Fed cover to resume rate cuts. That tension between inflation and debt servicing costs could easily reemerge if Fed rate cuts help boost business confidence – and hiring. For now, markets see that tension easing – and the premium investors demand for holding long-term bonds has sharply declined in recent weeks,” he notes.
BoE: Containing Inflation
In the United Kingdom, the Bank of England (BoE) met market and expert expectations by holding interest rates steady, once again at 4%. According to Mahmood Pradhan, director of Global Macroeconomics at the Amundi Investment Institute, although the decision was clear, the monetary institution still faces tough choices on what to do next. “August figures showed that inflation is high and persistent, but growth is patchy, and the Fed appears to be back on a prolonged rate-cutting path. We believe the BoE will need to cut 25 basis points in December, and reducing its balance sheet by £70 billion over the next 12 months is in line with expectations, but the £20 billion reduction in gilt sales should support the bond market,” explains Pradhan.
According to Mark Dowding, BlueBay CIO at RBC BlueBay Asset Management, the BoE governor may want to cut rates if possible, but this will depend on price moderation or a faster cooling in employment data. His outlook is clear: “We continue to believe that stagflation risks are present in the UK, and therefore it will be difficult for the BoE to act. Meanwhile, political risks keep us cautious on the pound. Certainly, if Starmer were to step down suddenly at some point, we think this could lead to significant pressure on UK assets and the currency, due to fears of a more hard-left alternative.”
BoJ: A Hawkish Tone
In Japan’s case, the BoJ kept rates unchanged—a decision also widely expected by the market. However, experts noted the surprisingly hawkish tone, and a rate hike is now being priced in for the October meeting. According to Dowding, it seems plausible that the BoJ wants to wait for greater clarity around Japan’s political leadership following Ishiba’s departure. “If the LDP leadership race results in a ‘business-as-usual’ candidate like Koizumi, this could pave the way for a potential rate hike as early as October – a scenario that could also see the yen strengthen further,” says the RBC BlueBay AM expert.
For Christophe Braun, Director of Equity Investments at Capital Group, the BoJ’s decision underscores its cautious stance amid slowing inflation and global uncertainty, prioritizing stability over premature tightening. “By preserving policy flexibility, the BoJ signals its readiness to respond to external volatility while continuing to assess the strength of Japan’s economic recovery. Unlike the U.S. and Europe, where central banks are leaning toward rate cuts, Japan’s macroeconomic conditions require a more deliberate approach. The BoJ’s strategy supports the early stages of a deflationary cycle, rather than reversing course. We expect the yen to strengthen gradually as interest rate differentials narrow, which will increase Japan’s purchasing power and support domestic demand,” explains Braun.
The U.S. SEC approved new rules that simplify the listing of exchange-traded products (ETPs) based on commodities, including those backed by cryptoassets.
The measure will allow three national securities exchanges to list and trade these instruments under generic standards, eliminating the need for individual agency approval in each case. From now on, if an ETP meets the established requirements, the exchange will only need to publish information on its website within five business days after the start of trading. “This simplified listing process will benefit investors, issuers, other market participants, and the Commission by reducing the time and resources needed to bring new ETPs to market,” the regulator stated in a press release.
According to the SEC, the goal is to facilitate market innovation without compromising investor protection.
In the past, the agency had been criticized for delays and regulatory hurdles, especially regarding ETPs linked to cryptoassets. Until now, exchanges were required to demonstrate that they had surveillance-sharing agreements with regulated markets of significant size, which limited the development of such products.
New Eligibility Criteria
With the approved rules, the underlying commodities of an ETP may be considered eligible if they meet any of the following requirements:
Listed on a market that is a member of the Intermarket Surveillance Group.
Underlie a futures contract with at least six months of trading on a market regulated by the CFTC.
Represented in an ETF that allocates at least 40% of its net asset value to that commodity and is already listed on a national exchange.
In this way, ETPs based on cryptoassets will have a clearer and more direct path to market.
The SEC emphasized that exchanges will still need to file special applications when a product does not meet the generic standards. However, it left the door open for the criteria to be expanded in the future, for example, through objective quantitative standards that would provide more predictability and speed in the approval of new instruments.
In August, Tariff Revenues Reached a New Monthly Record in the U.S. of $30 Billion, Rising Nearly 300% Compared to the Same Month Last Year. However, they were overshadowed by the fiscal deficit figure, which amounted to $345 billion for the month. Analysts consulted by Funds Society agreed that the deficit will continue to grow. It is one of the issues that concerns investors the most.
With one month remaining in the 2025 fiscal year, the year-to-date deficit increased by $76 billion, or 4%, reaching $1.973 trillion. This figure was only surpassed in 2020 and 2021, years of extraordinary federal government spending in response to the coronavirus crisis.
The Congressional Budget Office (CBO) projects that deficits between 2025 and 2034 will total about $21.1 trillion if current tax and spending laws remain essentially unchanged.
The agency stated that the debt-to-GDP ratio would reach 107% during the 2029 fiscal year, surpassing the peak reached in the 1940s, and would continue rising to 156% by 2055. This ratio is projected to be 100% for fiscal year 2025.
Market Consensus: No Swift Deficit Correction Expected
There is market consensus: a rapid correction of the deficit is unlikely. On the contrary, it is expected to remain high in the coming years, partly due to mandatory spending commitments (pensions, healthcare, debt interest), which will continue to increase.
Key Concern
Larry Adam, CIO of Raymond James, indicated a few days ago in a webinar that U.S. debt remains a “key concern” for the markets, especially along the long end of the yield curve.
Although yields remain relatively stable in global comparison, fiscal fears, inflation, and the independence of the Federal Reserve are putting pressure on long-term bonds, he explained.
Despite record debt issuance and price increases driven by tariffs, a sustained rise in Treasury yields is not expected, although episodes of volatility are. The yield curve could continue to steepen if the Fed cuts rates, but the potential for capital appreciation is limited, he added.
Fragile Fiscal Outlook
“While the improvement (in the latest Monthly Treasury Statement) is welcome, it does not change our assessment of the fragile fiscal outlook,” Tomás Villa, Head International Strategist at Argentine firm ConoSur Investments, told Funds Society.
“The level of the deficit is very high and, in fact, the improvement we are seeing benefits from a transition period in which tariff revenues are beginning to be collected, but the loss of fiscal resources associated with the Big Beautiful Bill has not yet been felt,” he added.
Although the latest data show an improvement in the U.S. fiscal balance—annualized to a moderated 6% of GDP—“spending momentum is not easing. Healthcare (including Medicare), Social Security, and interest on the debt, which are the three major spending categories and together represent nearly two-thirds of total outlays, are among the fastest-growing items this year,” Villa explained.
For this reason, ConoSur Investments envisions “a deficit widening again starting next year and remaining elevated, given the current mix of revenues and expenditures.”
Tariffs and Trade
Looking ahead, the Trump administration has reinforced the narrative of using tariffs as a tool for deficit correction, with measures already implemented in strategic sectors such as steel, aluminum, and Chinese consumer goods, noted Felipe Mendoza, financial markets analyst at ATFX LATAM.
However, he believes the trade deficit will likely remain high. “A true correction would only occur if tariffs were accompanied by a strong rebound in domestic production and competitiveness—something that requires time, investment, and complementary industrial policies,” he explained.
Investment Strategy Outlook
In this context, Raymond James believes it is a good time to continue taking advantage of current high rates, especially in investment-grade corporate bonds (BBB or higher), positioning portfolios with individual bonds in an active and strategic manner.
These bonds, the firm believes, offer capital security and a known yield if held to maturity. Although their prices may fluctuate with the market, a personalized portfolio of individual bonds fulfills its purpose: to return the principal within set timeframes and generate income through coupons.
The report, produced by One Goldman Sachs Family Office, gathered the opinions of a total of 245 decision-makers in family offices around the world on how they are approaching the current complex investment landscape.
“Family offices have shown extraordinary consistency in their investment approach, despite concerns over geopolitical tensions and protectionist trade policies. The 2025 results underscore how long-term orientation and flexibility enable family groups to manage volatility and seize opportunities,” says Meena Flynn, Co-Head of Global Private Wealth Management and Co-Head of One Goldman Sachs, in the report’s conclusions.
Key Findings
The document shows that portfolios remained in line with those of 2023, with slight shifts in allocations to listed equities (rising from 28% to 31%) and a slight decline in alternative assets (from 44% to 42%). Moderate increases in investments in private credit, fixed income, real estate, and private infrastructure partially offset the slight decrease in private equity. When it comes to risks, geopolitics remains the main concern. In fact, 61% of respondents cited geopolitical conflicts as the greatest investment risk, followed by political instability (39%) and economic recession (38%).
As in 2023, geopolitical conflicts remain the most cited investment risk, with 61% of respondents including it among their top three concerns (75% in APAC) and 66% expecting geopolitical risks to increase over the next year. Political instability (39%) and economic recession (38%) follow closely, with global tariffs not far behind (35%). According to the report, most now consider higher tariffs to be the new normal, with 77% expecting increased economic protectionism and 70% anticipating tariff levels to remain stable or rise over the next 12 months. Even so, respondents generally believe that the fundamental drivers of global growth and traditional investment themes remain intact.
Among the conclusions, it stands out that family offices are willing to allocate capital. In this regard, more than one-third of respondents plan to reduce their cash balances (currently at 12%) and invest in risk assets. Notably, most family offices plan to increase their exposure to private equity (39%), followed by equities (38%) and private credit (26%).
Innovation and Thematic Trends
Finally, a key trend is that family offices are becoming more open to investing in technology, especially in AI. “58% expect their portfolios to overweight the sector in the next 12 months. Widespread investments in artificial intelligence (AI): 86% have exposure to AI, largely through listed equities, although many cite concerns about valuation,” the report notes in its conclusions.
In addition to AI, a growing interest in cryptocurrencies has been observed: 33% invest in cryptocurrencies compared to 26% in 2023. A relevant nuance is that the APAC region shows the greatest interest in future investments.
Asset Allocation
Family offices maintain a strong weighting in risk assets, with public equities at 31% and alternatives at 42% (with private equity standing out at 21%). There are slight increases in real estate, infrastructure, and private credit, the latter booming due to its attractive yield. Exposure to hedge funds remains stable, though with greater interest in EMEA and APAC. Looking ahead, they plan to maintain overall stability with selective adjustments: more allocations to private equity (39%), public equities (38%), and private credit (26%), along with a reduction in cash (34%).
On the other hand, innovation is emerging as a central driver. Most are already investing in artificial intelligence, and many are integrating it into their investment processes, with expectations that the technology will gain more weight in portfolios. Interest is also growing in digital assets, especially in Asia-Pacific, as well as in secondary markets due to their increased transparency. Another emerging area is sports, where a growing number of family offices are seeking opportunities related to both teams and media/content.
On August 22, we likely witnessed Jerome Powell’s final Jackson Hole appearance as head of the Federal Reserve (Fed). As usual, his speech covered key topics: inflation, the labor market, and economic growth. However, this time there was a special emphasis on something that often goes unnoticed: the importance of distinguishing between cyclical and structural factors when crafting monetary policy. Gradually, the Fed’s focus seems to be shifting. Inflation, which dominated headlines in recent years, is now giving way to the labor market, which—with each new report and revision—is becoming the Fed’s main challenge.
Inflation: No Longer the Main Problem?
After several months of slowing down, some inflation indicators—like the PCE, CPI, and PPI—have started to rise again since April. Even the “prices paid” components in the ISM manufacturing and services indices continue to show expansion. However, looking beyond the short term, there are signs that inflation may be structurally losing strength. For example, housing inflation, which carries significant weight in price indices, continues to decelerate. Additionally, concerns about the impact of tariffs on prices, while visible in some goods categories, appear to be under control for now. Powell noted that, for now, he sees this effect as more temporary than structural. The two major risks that could complicate the outlook—unanchored inflation expectations and persistent wage increases—don’t seem likely given current labor market behavior.
For now, inflation data leading up to the Fed’s next meeting will be key: an uptick could suggest strong demand and the ability to pass costs to consumers, while a downside surprise might indicate consumer weakness and potential job cuts to manage costs. Currently, major indicators and surveys show inflation expectations remain aligned with the long-term 2% target, while the labor market no longer appears as tight as in previous months.
Labor Market: The New Concern?
This is where Powell’s speech becomes especially relevant. The Fed Chair acknowledged that July’s employment data was weaker than expected, and previous months’ figures were significantly revised downward. Although the unemployment rate remains low—around 4.3%—job creation is clearly slowing.
In fact, the August jobs report revealed fewer than 600,000 jobs created so far this year. Excluding 2020, the first eight months of 2025 are shaping up to be one of the worst years for job creation since 2009. Interestingly, this lower labor demand is being offset by reduced supply, partly due to lower immigration, which has helped maintain some balance in the market.
However, Powell warned that risks in the labor market are rising. If it weakens further, it could do so abruptly, with accelerated layoffs and a spike in unemployment. Leading indicators, such as the employment components in the ISM indices, are already showing signs of contraction, prompting markets to anticipate a more accommodative Fed going forward.
What Does This Mean for Monetary Policy?
The Fed estimates that the long-term neutral rate—one that neither stimulates nor restricts the economy—may be around 3%, meaning the current level (4.25%-4.50%) remains restrictive. In the June Summary of Economic Projections (SEP), the median Fed member expected to end 2025 with 3% inflation and 4.5% unemployment, implying a federal funds rate of 3.875%—suggesting two more 0.25% cuts for the rest of the year.
However, since then, several changes have occurred within the Fed’s Board of Governors. Adriana Kugler stepped down, Lisa Cook may lose her seat, and it’s expected that President Trump will appoint a new Fed Chair when Powell’s term ends in May. This could completely reshape the Board’s composition, potentially favoring a more dovish stance. In fact, markets are already pricing in up to six additional rate cuts by December 2026, which would bring the terminal rate to a range of 2.75%-3.00%. This outlook aligns with the views of Christopher Waller, a leading candidate to replace Powell.
Conclusion: Is It for Real This Time?
Although markets have previously had false hopes for rate cuts, this time the context seems different. With a weakening labor market, a Fed that may soon include members more aligned with the president’s views, and inflation that no longer poses a structural threat, the case for rate cuts appears stronger. While temporary spikes in bond yields may occur, the overall direction of the yield curve—especially in the short and intermediate segments—seems to point toward a new rate-cutting cycle.
Opinion article by Sebastian Salamanca, Sebastian Salamanca, CFA, CAIA – Senior Invesment Advisor at Boreal Capital Management
“Artificial Intelligence Is Constantly Evolving, and That Makes It Both a Challenge and an Opportunity” — This statement was made by Elena Alfaro, head of global AI adoption at BBVA, during her presentation titled State of the Art of AI and Use Cases at BBVA, delivered at the first Funds Society Leaders Summit recently held in Madrid.
What Alfaro means is that “AI is constantly evolving, with impact across various sectors; anyone who feels it’s moving incredibly fast is not mistaken—this is a full-blown revolution.” Just one data point proves the case: ChatGPT has been the fastest-adopted technology to date, reaching 100 million users just two months after its launch. Moreover, the expert stated, “ChatGPT is the most successful product in history.”
In fact, Alfaro noted, today, OpenAI (the company that owns ChatGPT) is generating 700 million active users per week, of which around 20 million are paying users. The BBVA representative added that if the user bases of the main competitors in this field are added, there are likely more than 1 billion generative AI users worldwide. Furthermore, considering that AI is part of a technology ecosystem born in the U.S., it has taken only three years to reach 90% of users outside the U.S. (compared to the 23 years it took the internet).
Double-Digit Investment
The BBVA representative also pointed out that the drop in costs has been dramatic since its launch three years ago. This, combined with user interest, has led to spectacular growth in every sense. Reflecting this trend, job openings in the U.S. IT sector related to AI have surged by 448%, while non-AI IT jobs have contracted by 9%.
That said, hyperscalers have doubled down on their AI development investments. Alfaro recalled that the so-called Big Six increased their capex by 63% from 2023 to 2024—a figure that was already high, reaching $212 billion.
Alfaro did not shy away from acknowledging that it’s unclear whether all the major players in this race are generating profits. She cited NVIDIA as the obvious beneficiary—thanks to GPU sales—and Accenture for the success of its AI-related services business line. Additionally, she stated that OpenAI is expected to report revenues of $12 billion by the end of 2025. Even so, the expert explained that major tech firms will continue doubling down on their investments because “they are making a long-term bet on this technology.”
Five Relevant Trends in the Financial Industry
Given that something that happened in April already feels “almost like the Pleistocene” in this fast-moving space, Alfaro outlined five trends that are already impacting the financial industry and that users should understand and familiarize themselves with.
Expansion of Reasoning Capabilities in Language Models Alfaro explained that we are now dealing with AIs that respond versus AIs that reason—and the final result can differ greatly depending on the task assigned. Reasoning AIs can break down problems through chains of thought, follow logical steps, take time to reason, and flag doubts when needed (she cited GPT-5, Gemini 2.5Pro, and Claude 3.7–4 as examples). On the other hand, non-reasoning bots offer faster responses without verifying or cross-checking information (GPT-4, Gemini 1, Grok 2, Deepseek Base). “This reasoning capability needs to keep advancing because otherwise, automating complex tasks will remain limited,” reflected the BBVA representative.
Multimodality This refers to the shift from generative AI being text-only to now encompassing images, video, voice, music, or combinations thereof—capable of generating diverse outputs.
Evolution from Assistants to Agents We are moving from bots that respond to human prompts to AIs that can be given goals and execute them autonomously. Alfaro forecasts that, eventually, each person could have their own “AI Chief of Staff” — capable of coordinating a group of AIs to carry out complex tasks.
Integration of Data and Tools Currently, ChatGPT typically isn’t connected to internal corporate data sources (like Salesforce, Google Drive, Outlook, etc.), but “there is significant progress in enabling connectivity to integrate company data sources or apps.” She stressed the importance of this integration for task automation and added, “Security and compliance teams will play a fundamental role in this integration.”
Growth of No-Code Tools “From now on, we’ll be able to do more complex things,” said Alfaro, citing Google Flows, a new tool that helps chain together processes, as an example of what’s coming next.
AI Use Cases at BBVA
Finally, the head of global AI adoption at BBVA shared that the bank is developing a portfolio of various projects across areas such as risk, operations, and software development.
One example is the mobile banking app Futura, which adapts to each user based on their activity and finances—for example, by identifying their most frequent operations and offering shortcuts. It also includes Blue, a chatbot similar to ChatGPT that answers user questions ranging from product inquiries to detailed personal finance queries.
BBVA is also engaged in a highly ambitious project grounded in the philosophy of AI adoption among employees: “This is a people project, not just a technology deployment project. Technology is very important, but it’s people who must adopt it,” she emphasized.
Launched in May last year, the initiative began by making AI capabilities available to a growing number of employees to help boost productivity, encourage creativity, and enable them to build their own assistants. The results, according to Alfaro, have been “extraordinary”: the program has achieved nearly 90% user retention and led to the creation of over 5,000 functional applications by people with no coding experience. Around 1,000 high-value use cases have already been identified and are being implemented, leveraging solutions from OpenAI and Google.
Conclusion: Better In Than Out
In conclusion, Alfaro emphasized that in the face of this revolution, “it’s better to be in than out; staying out doesn’t make much sense.”
She closed her talk on an optimistic note, asserting that humans won’t be left out of the equation. Instead, their role will evolve from task executors to orchestrators—though with important nuances: “We should always analyze tasks from the perspective of what makes sense for AI to do and what makes sense for a human to do.” She cited a study indicating that skills such as organization, prioritization, and training still require strong human involvement. In her view, the most likely outcome is a division of labor, leading to the evolution of current roles and the creation of new ones. “In that evolution, continuous training for all employees is key,” she concluded.
Santander Private Banking International (PBI) appoints Felipe Herrmann as senior investment advisor in Miami, according to his profile on the professional network LinkedIn.
Herrmann held the position of executive director at J.P. Morgan Private Bank in the same Florida city, and previously worked in alternative investment sales and discretionary investment sales at Citi, after serving as associate at Safra Asset Management in New York.
Academically, he holds a bachelor’s degree from USC’s Marshall School of Business and an MBA from Northwestern University – Kellogg School of Management. He also holds FINRA Series 7, 31, and 66 licenses.
