Money 20/20, the premier global fintech conference once again showcased the peak of the fintech industry. This year’s event, June 4-6, highlighted pivotal trends in AI and open banking payments, which are set to shape the future of the financial industry. Our member from Payware, Vladimir Goranov, co-founder and CEO participated in the event and shared with us top takeaways from the event:

o   Open Banking: While adoption and breadth are crucial for the next level, Open Banking can learn from card schemes. Open Finance with data at its core is already underway, but interoperability and regulations differ regionally. Commercial VRPs (Verified Request for Payment) could be a game-changer, and combining Open Banking with Generative AI holds promise.

o   Ecommerce: The gig and circular economies are exploding, with millions of new creators and sellers. Mass personalization through big data and AI is key. Digital identity, AI, and biometrics are needed to address security and consumer trust. Large Language Models (LLMs) can provide high-quality, multi-channel data for specific industries.

o   Artificial Intelligence: AI will enhance, not replace, humans. Predictive AI is already in use, while Generative AI is gaining traction. Data is critical for feeding the models. Europe lags Asia and the US in AI investment, and needs to address implementation, integration, and scalability. Large-scale AI requires investment in “AI factories.”

o   Digital Money: Central Bank Digital Currencies (CBDCs) and stablecoins will coexist. Adoption, integration, and interoperability are key challenges for CBDCs. Collaboration with existing financial infrastructure providers like Swift is important. Public trust is essential to address skepticism and conspiracy theories.

o   Payments: Real-time infrastructure is critical. Fraud remains a major challenge, with global anti-fraud investment projected to reach $10 trillion by 2025. Europe needs to compete beyond rails with the Digital Euro and EPI with wero, but added value and adoption are hurdles. Seamless, personalized payment experiences that add value are key. Embedded finance, subscription payments, and B2B models like B2B Pay Later are winners. Digital wallets are crucial infrastructure, and Europe has an opportunity to drive adoption.

o   Personalization: Mass personalization is a major trend across industries. Real-time data analytics, cloud infrastructure, and AI are key enablers, with payments playing a leading role.

o   Banking: Legacy systems and digital transformation are major challenges for traditional banks. However, banks are already implementing Generative AI, with 78% planning to increase AI investment. Strategic partnerships (e.g., chatbots) are crucial for innovation, but execution remains the biggest hurdle. Sustainable financing is a $2.6 trillion market in 2023 and is projected to grow further.

o   Blockchain: Blockchain offers an alternative to traditional financial services with speed, security, and scalability. Ripple and Kraken are examples of its evolution. Robust infrastructure, system interoperability, regulation, data privacy, and maturity of cross-chain use cases are key challenges. Cryptocurrencies are becoming a legitimate asset class, with examples like ETH ETFs in the US.

Money 20/20 has the perfect crowd. The audience was exactly who you’d want to connect with – C-suite representatives from a diverse range of companies and locations. Speakers and highlighted topics were spot-on, addressing current trends and challenges in the financial services landscape. From a business point of view, this wasn’t just a flashy show – attendees were there to network and build connections.” -shared Vladimir when asked about the type of audience and overall atmosphere at the conference.