“Excitement has returned to fintech,” according to Solomon Partners Managing Director Joseph Watson, who characterized the positive mood at last month’s Money 20/20, the premier gathering for executives in Fintech, Payments, and Financial Services, hosted in Las Vegas from October 26 to 29.
Now in its 13th year, Money 20/20 featured keynote speeches from prominent C-Suite executives such as Robin Vince, CEO of BNY, Max Levchin, CEO & Founder of Affirm, and Gunjan Kedia, CEO of U.S. Bank.
Watson shared his three key takeaways from the conference:
1. Capital is flowing back into the fintech space
In 2021, fintech investment reached a record $238.9 billion and then dropped precipitously to $164.1 billion in 2022 amid rising interest rates. With the Federal Reserve having made two rate cuts, the industry is taking notice, and there is palpable excitement, especially given the pro-crypto / artificial intelligence administration in Washington.
2. There is a renewed focus on consumer credit
With new tools to improve and augment decision-making, fintech companies are prioritizing helping underserved communities gain greater access to credit. In addition to the three big credit unions – Experian, Equifax, and TransUnion – lenders now have access to more expansive and nuanced data sets that can be used to determine creditworthiness. New entrants to the fintech space are also focused on reducing fraud and improving consumer security.
3. AI is top of mind in the financial services sector
“AI continues to be the word on everyone’s lips, across technology writ large, but especially within the financial services industry,” Watson said. Financial services companies are incorporating AI solutions across their core operations to provide greater efficiency and higher quality while also helping to reduce costs. Beyond the well-established technology providers, we are also beginning to see a new generation of AI-native tools come to market. This AI innovation will drive further capital raising and M&A activity, as established providers seek to acquire new capabilities.
Ultimately, the integration of AI into financial services marks a pivotal moment—one that promises to redefine operational standards and unlock greater value for both companies and their clients.
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