The future of fintech: Insights from MoneyLIVE Summit

The recent MoneyLIVE Summit in London brought together thought leaders and innovators from the fintech and banking sectors. The discussions were anticipated to revolve primarily around AI, the future of fintechs, open banking, tokenization, crypto, and various aspects of the future of tech and finance. However, alongside the substantial emphasis on these anticipated topics, many speakers focused on addressing current issues in Finance, such as Consumer Duty and financial regulations, ESG & green loans, the role of mutuals in the community, and the growing significance of customer experience. 

Here’s a recap of issues and topics that emerged from the summit, which offers a glimpse into the future of fintech and the kind of changes that organizations will need to prepare for.

The evolution of embedded finance and open banking

Embedded finance and open banking were central topics, pointing towards a more inclusive and interconnected financial ecosystem. Joris Hensen of Deutsche Bank and Jack Spiers of Tink emphasized the transformative power of open banking in fostering inclusivity through the strategic use of data. The discussions highlighted how such ecosystems are not just technological advancements but are paving the way for greater financial inclusion and democratization. It became evident that API-first approaches and modular building blocks are essential for modernization and future readiness. 

PSD3 regulation and the future of fintech

With the spotlight on the future of fintechs, the summit provided insights into the shifting landscape of financial technology investments. The panel featuring Isa Goksu of Globant and experts from First Direct (HSBC) and Foxe Capital illuminated the impact of market recalibration on fintech funding. During the event, one of the main points highlighted was that investors seek clarity and conduct detailed due diligence before making commitments, influenced by the advent of Banking-as-a-Service and the rapid evolution of customer behaviors.

The role of AI in shaping customer experiences

AI’s role in transforming customer experiences received significant attention. The consensus was that while AI is a buzzword, its adoption is critical for meeting customers’ evolving expectations. The conversations also addressed the need for resources to leverage AI effectively, indicating a pragmatic approach to its implementation in the financial sector.

The importance of hyper-personalization

Along with AI, hyper-personalization emerged as a critical theme, focusing on identifying the right balance between being helpful and avoiding intrusiveness. The summit showcased how banks and fintechs leverage customer data to offer personalized services, highlighting the importance of consent and user-friendliness in these endeavors.

Cross-industry partnerships and data monetization

The event also delved into the potential of cross-industry partnerships in unlocking new value-added services. Third-party providers (TPPs) can offer enriched data and product offerings through such collaborations, underscoring the importance of an API-first approach and modular construction for modernization and future readiness. 

Kevin Dearing illustrated the importance of consent and user-friendliness, using the #VRP journey to showcase the impact of UX enhancements, making it possible for attendees to witness the transformation of regulatory compliance to customer-centric design.

Customer experience and human interaction

Despite the heavy focus on technological advancements, human interaction and understanding customer needs were not overlooked. Cynergy Bank’s contribution emphasized combining digital innovations with human-centric customer service to ensure smooth and secure banking. They believe that customers must be empowered, that human interactions should remain necessary for customer service and that our customers’ unique requirements should be understood. 

What can we expect in the near financial future?

From the discussions in this year’s MoneyLIVE Summit, it’s clear that the industry’s dynamic and evolving nature involves significant technological advancements and new paradigm shifts through AI and a focus on creating a more inclusive, personalized, and interconnected financial ecosystem. Opening the door to different kinds of partnerships, disruptive technology, and interoperability possibilities will become essential for financial players as they evolve quicker, responding to the demands of the clients and market. Questions remain about who will harness these innovations in time to adapt successfully. And how will they balance efficiency with empathy and ensure that the human aspect of finance is never lost in the technological transformation?