During 21-24 October, industry leaders will gather in Las Vegas at Money20/20 to discuss the latest trends in payments, fintech, and financial services.
The event is expected to attract more than 11,500 attendees, 3,500 companies, and 400 start-ups from across the globe. Being the largest event of its kind, companies are likely to use it as a platform to announce new products, strategies, and financials. More than 200 announcements were made in 2017.
The fintech revolution is well on track and fintech hubs are sprouting up around the globe.
However, we continue to see regional differences, promising that a wide array of topics will be discussed at this year’s event. Mobile payments have attracted the bulk of funding in the Asia Pacific region, while open banking and data sharing have been key themes in Europe.
In contrast, US fintechs have taken a somewhat more inward-looking approach as governmental impetus is lacking: there are still no legal requirements for financial service providers to make consumers’ financial data available to third-party providers.
As such, the concept of open banking still has a long way to go in the States. Looking at where funding is going currently, anything related to data analytics is big business in the US. This being the case, we will definitely hear more about CRM, KYC, and anti-fraud from US players.
Artificial intelligence and blockchain will be major Money20/20 themes attracting strong interest across the board. Both technologies are still in their infancy and promise further disruption to the wider financial services industry.
While currently restricted to performing pre-defined tasks such as credit risk assessments and chatbots, we are likely to witness significant progress in the application of AI over the next few years. Almost one fifth of the fintech companies we track as part of our Fintech Landscape Analytics are AI-related.
As the technology matures it will significantly transform the industry. Further customer service automation will lead to significant cost reductions, while reducing the need for low-cost call centers offshore.
At the same time relationship analytics AI has the potential to allow banks to target customers more effectively, with the ability to offer products and services before they even know they need them. Key industry figures from major incumbents such as HSBC, Google, and Wells Fargo as well as start-ups including Peronetic and Distilled Analytics will share their views at Money20/20 on what’s possible and what lies ahead in the AI field.
Similarly to artificial intelligence, blockchain technology is still in its infancy. First and foremost the technology is associated with cryptocurrencies; however, its uses are becoming far more wide-reaching as it continues to mature.
Capital raising, cross-border interbank transactions, and anti-fraud and anti-money laundering processes are all topics that will feature in the “Blockchain” discussion at Money20/20. It is our view that the real story for blockchain will be outside of the common retail payments market and be more closely related to innovations such as Everledger (investments) and Moneycatcha (mortgages).
As we dive further into a fintech future, more cyber vulnerabilities are likely to arise as more systems and entities become interconnected. Robert Hackett from Fortune will moderate a panel on how to best manage the security risks arising from fintech innovations.
With banks investing heavily in this area and cybersecurity a high priority, there is a fertile market for innovation. GlobalData’s 2018 survey of bank executives found that almost half ranked cybersecurity as the top technology concern.