Portfolio Manager Insights

AI is rewiring the engine of finance

Fidelity’s Sammy Simnegar believes the financials sector is on the verge of a massive transformation, driven by the integration of generative AI.

By: Sammy Simnegar
Updated: 8/3/2026
Key Takeaways
  • By automating complex, time-consuming and dense workflows, financial institutions around the world are leveraging artificial intelligence to significantly improve efficiency, reduce risk and lower costs, according to Fidelity Portfolio Manager Sammy Simnegar, who sees this structural recalibration as likely to widen the gap between leaders and laggards.
  • “Generative AI is set to transform the financials sector, but its biggest impact isn’t in customer-facing tools,” says Simnegar, who manages Fidelity Advisor® International Capital Appreciation Fund. “The true value is being realized within the complex ‘engine rooms’ of global finance: back-office and risk-assessment frameworks.”
  • In helming the diversified international equity strategy since 2008, Simnegar favors high-quality growth stocks benefiting from long-term “mega trends,” as well as what he calls the three “B’s” – brands, barriers to entry and “best in class” management teams.
  • The global financial landscape is entering a period of structural recalibration, Simnegar notes, as major international institutions pivot from pilot programs to large-scale generative AI integration.
  • As an example, he points to sizable fund holding Mitsubishi UFJ Financial Group, which under the leadership of CEO Hironori Kamezawa has emerged as a frontrunner in the use of AI within the Japanese banking industry.
  • Specifically, Simnegar says that the firm has aggressively moved to automate its core administrative functions, aiming to reduce manual workloads through its internal “MUFG AI Platform.”
  • “Even more noteworthy, management has genuinely embraced this technology by opportunistically acquiring stakes in AI partners, including LayerX,” he explains. “In fact, the company projects that integrating LayerX’s AI solutions – especially in functional areas like sales proposals and customer financial data review – could save the bank about 200,000 work hours annually.”
  • Similarly, Spain’s Banco Santander has made major strides in applying AI to boost efficiency and enhance fraud detection throughout its global operations, according to Simnegar. He notes that the bank, another top midyear holding, expects these efforts to generate roughly €1 billion in savings and revenue by 2028.
  • “Furthermore,” he says, “its advanced monitoring systems aim to detect emerging threats, including deepfakes and unauthorized screen sharing, in real time, while machine learning helps identify suspicious transaction patterns commonly associated with financial crimes with greater accuracy, reducing false positives and allowing investigators to focus on higher-priority risks.”
  • Simnegar highlights Santander’s technological edge through its successful execution of Europe’s first fully AI-enabled end-to-end payment within a secure, controlled framework designed to ensure security and consumer protection.
     
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