The expanding role of AI in fintech: Takeaways from Money20/20 USA

Innovations in the financial technology (fintech) sector such as online lending and digital wallets have made banking easier for the average person. But fintech has also offered a wakeup call for traditional financial institutions: embrace cutting-edge technology or risk falling behind.?

As the fintech market continues to grow rapidly, traditional financial institutions are getting the message loud and clear. At the Money20/20 USA Conference last month, emerging technologies such as blockchain and crypto, open banking, and the use of artificial intelligence (AI) for everything from budgeting advice to cybersecurity, dominated panel discussions and exhibitions.??

?Taking place October 27-30 at The Venetian in Las Vegas, NV, Money20/20 USA is a premier event in the fintech industry, bringing together professionals from banking, payments, cryptocurrency, and financial services. One-third of attendees are C-level executives and 85% of the world’s top 20 banks are represented at the conference.?

Given HTEC’s broad fintech experience, our domain experts — Michael Ellwood, GSP , Director of Business Development; Ashley Dye , Sr. Director of Business Development; Peter McNulty , Head of UX; Irhad Babi? , Engineering and Delivery Manager, Financial Services; Dino Selimbasic , Senior Director, Engineering and Delivery, Financial Services; and Chris Westerhold , Senior Director, Platforms and Developer Experience — attended Money 20/20 USA to gain first-hand insights on where the industry is heading.?

?Here are conference observations from Peter McNulty, Irhad Babic, and Michael Ellwood:???

Emerging and evolving technologies focused on fintech cybersecurity?

With hundreds of panels and presentations, Money20/20 covered a wide variety of technologies and use cases. According to Peter McNulty, the common threads across the conference were AI in fintech, blockchain, crypto, and cybersecurity.??

Here are Peter’s main observations from three days of panel discussions and breakout sessions.?

• Crypto and fraud detection: There were 26 sessions on crypto, fraud prevention, and Know Your Customer (KYC), which is a process that uses AI to verify a customer's identity and automate customer onboarding so it’s faster and more secure. The number of sessions dedicated to these topics indicates a major focus on securing transactions and protecting users.? ?
• Data security: Data security remains a critical priority. With a reported 76% increase in data theft victims this year, fintech companies are adopting advanced encryption and compliance measures to protect customer information.? ?

• AI and blockchain streamlining digital payments: The conference was full of discussions about how AI and blockchain are revolutionizing payment processes by reducing transaction costs and fortify fintech cybersecurity.? ?

“As fintech expands, the fusion of AI and blockchain is transforming fraud detection and KYC, paving the way for faster, more secure identity verification and customer onboarding.” ? — Peter McNulty, Head of User Experience, HTEC?

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AI in fintech and open banking for improved decision-making and collaboration?

Similar to Peter, Irhad Babic, found that the subject of AI in fintech permeated the conference.?

AI technologies now power most aspects of fintech, Irhad said, including real-time data analytics, fraud detection, and customer experience personalization. He emphasized that AI has become a crucial component in fintech because, “AI allows for human-like reasoning but with much larger data sets, and it continuously self-corrects over time, helping businesses and consumers make smarter financial decisions.”?

Another popular topic at Money20/20 was open banking. Open banking is a model that enables banks and financial institutions to share customers' financial data (with their permission) securely with third-party services. This makes it easier for consumers to manage their finances in one place without manually migrating and inputting data. The Mint personal budgeting app is a popular example of open banking.?

Open banking is vital for the future of banking because, as Irhad states, “it promotes collaboration among financial institutions, which will create more integrated, secure and innovative financial tools for the consumer.”?

“AI, blockchain, and open banking are reshaping finance. These aren’t just trends; they’re defining the future of financial services by enabling scalability, transparency, and personalized customer experiences.”? — Irhad Babic, Engineering & Delivery Manager, Financial Services, HTEC? ?

Money20/20 — a hotbed for finance/technology partnerships?

?HTEC’s fintech know-how aligned well with the conference’s themes and topics, and the team made high-quality connections at HTEC’s exhibition booth with fintech leaders for follow-up discussions about potential partnerships.?

According to HTEC business development director, Michael Ellwood, many of the fintech professionals he spoke with at the HTEC booth are seeking a trusted, design-driven engineering partner to help with AI and modernization.??

“Fintech companies are looking for a partner that feels like an extension of their team,” Michael said. “They want expertise with a focus on strategy, not just building.”?

Summing up the HTEC teams’ experience at Money20/20 USA 2024 conference, Irhad added:?

“Money20/20 is the conference to attend if you work in the finance industry and want to stay on the bleeding edge of market trends. It brings together finance and technology leaders and facilitates collaboration, inspiration, and action. It can be fun, too.”?

? Ready to discover how HTEC’s advanced technology solutions can support your fintech projects? Connect with an HTEC expert.?