Humanizing the Fintech Industry: Money20/20 Takeaways

To me, this year's Money20/20 conference was not just about the latest tech or financial trends. The 2024 Amsterdam gathering presented to all the attendees a strong case for a ‘Human x Machine’ future, where we as people collaborate with the latest technology to shape the future of finance. As we move forward as a fintech industry, I firmly believe that people will continue to provide the ethical compass, narrative, and guiding principles for the machines and technology we develop.

Top 10 Takeaways from Money20/20

In this article, I want to share with you 10 key takeaways from this year’s Money 20/20 conference, which highlighted the importance of a human-centered approach to all and any technology:

1. Transparency & efficiency for people. Human x Machine teams (HxM teams for short) are to shape a landscape for faster, more transparent payments, removing friction from the business environment and further empowering users.

2. Fintech is a long-term customer-focused investment. Fintech is not about ad hoc tech adoption or embracing the latest trends for the sake of it. It is, first and foremost, a strategic investment in a future-proof and scalable financial system with the customer needs in mind. Patience and planning are crucial for the long-term success of any financial solution.

3. Collaboration is key. People and technology achieve the best results when they each leverage their individual strengths. Conventional banks contribute brand trust and loyalty, while innovative fintechs bring agility. Collaboratively traditional banks and fintech market entrants can create win-win scenarios for the financial ecosystem.

4. Tech for people, not products. Machines are not able to interpret existing context with the same precision as people do. To avoid misunderstanding and confusion, fintech should not rely solely on technology to drive their business. HxM teams should prioritize solutions that address consumer needs and align with regulations, evolving technology interfaces to meet user demands.

5. Embedded finance is all about convenience. Embedded finance thrives on seamless human-machine interaction within existing user habits. I imagine that in the near future signing up for financial products on Instagram should be as easy as ordering a pair of sneakers on the same channel. You have to meet your users where they are and get all in with the omnichannel strategy.

6. BaaS boom: human expertise for emerging markets. Emerging markets, fueled by human aspirations to catch up, demand rapid bank launches to support their growth. HxM BaaS solutions can become a real one-stop shop to launch a ‘bank in a box’, which will take the best of both worlds and rely on human expertise along with tech-powered solutions for a smooth customer-centered transition.

7. Wealth-tech is about to change. Currently, 1 in 3 of working-age adults in the UK have less than £1000 in savings. Wealth-tech, powered by HxM collaboration, is changing the game by providing a wider access to financial advice – a highly promising niche with an estimated $20-trillion value by 2030. For example, pension providers will be working on a range of tools to offer personalized financial planning, retirement strategies, and investment options.

8. Aligning customer values with investment advice. Besides simplifying access and offering customized investment options, HxM teams will help financial advisors fully align their offers with customers’ individual values and preferences, such as sustainability and inclusion.

9. Open finance: building a human-centered financial super app. Consumers crave a complete and holistic picture of their financial situation. Open finance, driven by HxM teams, will allow users to easily manage their daily expenses with an all-in-one application, where they can save for the short-term, and plan for their future with added confidence.

10. Human oversight to ensure ethical AI. As AI grows more autonomous, a discussion about AI ethics becomes crucial. HxM teams must establish responsible development and clear human oversight to leverage AI and deflect potential ethical issues.

What Else?

Beyond the machine. While talking about the combined power of people and technology, this year’s discussion omitted AI itself, the metaverse and the promise of Web3, or even the ever-growing demand for scalable data infrastructure, focusing instead on the human element of the puzzle. The latter, however, was not reviewed as thoroughly as it could have been. As for me, the topics of the potential impact of mobility and electric vehicles on payments, ESG, diversity and inclusion, which all affect human lives, were not explored extensively enough during Money20/20. Still, I am sure they will come up again next year as the focus of the 2024 conference was clearly geared towards increasing user adoption by becoming more human- and less technology-centered.

The Human x Machine future. I believe that financial institutions can absolutely thrive by prioritizing human-centric solutions built on ethical industry-tailored AI. This means involving HxM teams to develop tools that solve real human problems, seamlessly integrate open finance, and leverage trusted partnerships between banks and fintech's. I can imagine a "financial app store" where we as consumers have full control of our financial data, can securely connect with preferred financial service providers, access trustworthy investment and tax advice – all powered by human-machine collaboration.

This future, I believe, will empower consumers globally, foster financial confidence, and ultimately improve the financial lives and well-being of citizens globally.