5 Fintech Trends We Spotted at Money2020 Europe & USA
Contributed by: Bogdan Dinu, Head of Product at Thunes
The Thunes team was out in force at Money2020 Europe and USA recently, the biggest fintech gatherings of the year. Our verdict? It was fantastic to be back – our first in-person conferences since the pandemic hit!
Nothing beats a physical conference to reconnect with industry peers, share knowledge, and support our partners in their future growth. At Money2020 in Amsterdam and Las Vegas, we rubbed shoulders with everyone from fresh-out-of-the-box fintech startups to some of international banking’s most established names, all keen to discover the latest twists and turns in the fast-evolving payments ecosystem.
In this article, we identify five of the fintech trends that emerged from Money2020.
- Access for all. Financial inclusion remains a significant driver for fintechs. While the outlook is slowly improving thanks to the growth of global payments networks like Thunes, there’s some way to go. According to the World Bank’s most recent estimation, 1.7 billion adults remain unbanked—without an account at a financial institution or through a mobile money provider. On the bright side, we have met more and more fintechs that have taken the challenge to develop localised solutions to suit even the most hard-to-reach markets. Success demands the creation of easy-to-use interfaces and accessible platforms that can overcome the challenges of poor Internet speeds.
- Collaboration drives progress. We’re witnessing increased fragmentation in the payments ecosystem, but this has the positive side effect of bringing good collaboration opportunities. A collection of solutions built by nimble fintechs to solve the myriad of pain points could be the best way forward. And fintech is an industry that thrives on collaboration, often building solutions and products through partnerships. Many players are powering one complete solution to deliver end-customer value, and choosing the right network is vital. Extensive network coverage, resilient infrastructure and direct connections are top factors in selecting the right partnerships.
- An open future. Open banking was the buzzword at both the European and US conferences. This mechanism opens up access to customer financial data in a secure way, and there’s growing excitement about its potential. Data insight enables fintechs to provide customised solutions and advisory services, with consumers benefiting from a wider choice of simpler, tech-driven products to help boost their financial health. We have seen an increased number of providers in this space and also some consolidation.
- Matching business expectations. Digital technology has transformed how a business operates and the value they deliver to their customers. Businesses seek a frictionless payment experience that’s fast, transparent and secure, anywhere and anytime. Fintechs must address these needs to enhance their market appeal.
- A compliance-first mindset. Security is more critical than ever, especially with the emergence of open banking. Machine-learning algorithms and razor-sharp biometrics are powerful new weapons in the identity verification technology armoury. For payments platforms, too, there can be no compromise on compliance. In this fast-moving landscape, financial regulators around the world have to balance the need for innovation in payments with protecting businesses and consumers. They must also develop a robust regulatory framework to stay up to speed with local regulations and create new products with a compliance-first approach.
Like to know how our fintech products and services can help power your global business? Schedule a chat with our friendly team today.