Studying the properties and composition that make up the FinTech ecosystem
Welcome to this week’s industry analysis with the FinTech Chemist. While I may not be literally mixing solutions and preparing reagents, I am studying and testing out the latest and greatest in FinTech. I recently attended Money20/20 Europe in Amsterdam, and here’s what I was able to formulate over the three days I was there:
With massive amounts of sensitive data, comes great responsibility. Like trying to handle a delicate substance, the financial services industry is still finding its footing when it comes to open banking. Even though the UK has pushed hard to implement the concept, David Birch said it best: “To the average person in the streets, it’s delivered basically nothing and all they get is an occasional letter from their bank with incomprehensible gibberish and something about the CMA.”
To most people, the idea of sharing so much data is intimidating. But, like any great invention or initiative, the benefits have the potential to reshape the way money moves. From giving access to underserved markets, to a more fluid customer experience, and not to mention new entrants into the marketplace, it has a lot of people rooting for its success.
Another prominent element from Money20/20 Europe was how payment providers are hyper-focused on creating a seamless front-end experience. This is where core banking providers stood out. Many of them are looking to technologies like Artificial Intelligence (AI) and Machine Learning (ML) to usher in a new era of banking, and drive customer satisfaction. An article by banktech.com summed up the general feeling in the room, citing that “…a bank ought to do