Key Insights from Money20/20 Europe: Technologies Transforming Finance

This year, Money20/20 Europe, held from June 6-8 in Amsterdam, saw a record turnout, attracting a diverse mix of startups, enterprises, and tech companies. This blend of perspectives made it an excellent stage for discussions on the future of finance.

Anna Panchenko , Volodymyr Hlushchenko, MBA , Andriy Sharandakov , and Yuriy Voloshynskyy also joined Money20/20 to represent N-iX. We've had many meetings and insightful conversations. Based on our experience, in this article, we'll decode insights from Money20/20 and address key questions about the latest trends and long-lasting strategies in the financial services industry.

What was the main theme of this Money20/20?

This year, Money20/20 Europe was built around the "Human X Machine" theme and explored how finances will change as humans and intelligent machines work together.

The focus was not on how AI can replace humans but on how it can enhance their productivity. During the sessions from Microsoft, Nvidia, Mistral AI, and Omdia, speakers emphasized that while the allure of cost-cutting through AI is tempting, the true winners will be companies that integrate the "human element" into their AI solutions. In other words, even with excellent response times from AI agents, customers may still wait for humans in the loop to step in.

What are the most popular use cases of GenAI?

AI is revolutionizing financial companies by driving modernization, enhancing digital transformation, and helping build innovative products and services.?

From fraud detection and risk management to personalized customer experiences, AI has a wide range of applications in finances. However, not every organization is ready for them. Companies must ensure that their data is ready and structured to fully leverage the power of AI.

— Yuriy Voloshynskyy, Head of Delivery Department at N-iX

AI has long been part of finance, especially in payments, decision-making, and security. However, generative AI brings fresh opportunities for innovation and experimentation.

• In the context of enhancing routine operations, GenAI is a significant winner. Many companies arrived at Money20/20 with requests for products and solutions that would optimize their internal operations. And it's not just about fintech integrating AI into their operations; regulators are too. For instance, the Financial Conduct Authority in the UK uses AI for sanctions screening and monitoring market abuse.
• Generative AI revolutionizes document processing, which is helpful for financial companies that need to handle diverse documents such as loan applications, KYC documents, contracts, and regulatory filings. It can automate the whole process of reporting by gathering data from various sources, analyzing it, and then producing insightful, coherent reports.
• AI-powered chatbots and assistants enhance customer and employee experience by providing account management, personalized financial advice, product recommendations, and easing the burden on support teams.
• Hyper-personalization is also driven by advancements in GenAI and data analytics. By using these technologies to uncover hidden patterns and trends, financial organizations and fintech companies can offer proactive financial solutions and tailored marketing strategies for individual users.

?? Explore more with our “Generative AI in banking” free guide: use cases and applications that transform the market.

What is the main current challenge for financial firms in the face of tech adoption?

Data security is a major challenge as products become more personalized and companies gather more data. Companies need to be careful about how they collect, store, and use data. Also, while many financial institutions have accumulated a vast amount of customer data, they still haven’t found an approach to use it effectively.

Now is the time for companies to transform into data-driven organizations by building platforms that democratize data and analytics. With solutions like data warehouses, BI tools, data science, machine learning, and AI, companies are empowered to establish data management for better operational efficiency, and new revenue opportunities.

— Anna Panchenko, Customer Engagement Manager at N-iX

What other trends are dominating the industry?

1. Security and fraud detection

In the age of online transactions and fintech, security is paramount, especially secure use of data. With increasing reliance on data-driven decisions, it's essential to handle sensitive information securely and ethically.

For transactions, besides traditional methods like fingerprint and facial recognition, new technologies like voice recognition, iris scans, and behavioral biometrics (e.g., keystroke dynamics and gait analysis) are gaining popularity. These methods enhance security and improve the user experience.

Processes like Know Your Customer (KYC) and Know Your Vendor (KYV) remain crucial. They help companies verify the identities of customers and vendors, ensuring legitimacy and preventing fraudulent activities, money laundering, and other illegal acts.

?? Related news: N-iX has strengthened its partnership with Mitek Systems, a global leader in digital identity and fraud prevention, to enhance its service offering, addressing the need for secure and efficient digital transactions.

2. Holistic customer experience

Companies are increasingly focused on delivering added value through comprehensive, integrated solutions. They aim to cover as many aspects of the client's business operations as possible for a seamless experience. Retailers and marketplaces, in particular, strive to own the entire end-to-end customer relationship, avoiding third-party payment providers.

This offers a good foundation for growth and expansion with new products and solutions:

Reaching new markets and customers is easier by developing add-on solutions for existing products. This strategy is also effective for companies that want to introduce new AI features and services.

— Yuriy Voloshynskyy, Head of Delivery Department at N-iX

3. Embedded finance

A BCG survey shows that 64% of merchants want financial solutions integrated into their systems. We’ll see more and more real-time financial tools within apps, such as ride-hailing services, e-commerce sites offering loans, and social media platforms introducing payments.?

Although cultural factors and existing payment habits may slow down the shift to new payment methods in some cases, customers' expectations are evolving. The adoption of innovative payment services and the next wave of embedded finance solutions is an inevitable response to the demand.

The event showcased how technology drives the growth of embedded finance. For example, innovations like tokenization, embedded checkout, passkeys, and biometric authentication can reduce cart abandonment. One-click payments, mobile wallets, real-time processing, Open Banking, and Machine Learning algorithms all contribute to the expansion of this trend in finance.

4. Open Banking?

It has grown globally, leading to a rise in API-based solutions that integrate banking services into various platforms. The reasons are different for various regions: they are either regulatory or market-driven. Countries like the US, Saudi Arabia, and New Zealand have recently introduced relevant legislation.

The upcoming PSD3 directive aims to further enhance open banking. However, some opinions at Money20/20 suggest it’s all about creating marketing momentum. Regions like the Middle East move faster than Europe and have the potential to become leaders in "open everything".

What strategies might be the most effective for financial institutions?

1. Tapping into Data capabilities

Financial services are becoming highly personalized thanks to AI and data analytics. Fintech firms use smart algorithms to analyze spending patterns, risk profiles, and investment preferences, providing tailored budgeting, saving, and investing advice.?

AI can also provide forecasts and optimize decision-making, even with imperfect data, predicting product preferences and customizing marketing strategies.

Business Intelligence tools help banks and other financial institutions with precise risk evaluation, automation of data gathering and basic reporting, segmenting customer base, and more.

Data warehouses consolidate data from multiple sources, ensuring accuracy and accessibility. This centralization supports advanced analytics and machine learning, which enhance risk management, fraud detection, and personalized services. They also enable quick report generation, improving regulatory compliance and operational efficiency.

?? Learn more: Building a data warehouse: A step-by-step guide

2. Advancing with Cloud

Businesses adopt the cloud to optimize costs, streamline service delivery, and simplify the management of various operations.

For financial institutions, it becomes a cornerstone as it provides a scalable and flexible infrastructure that allows them to adapt quickly to market and regulatory changes. While cyber threats loom large, cloud technology offers advanced security measures, which are critical in banking and other financial companies.

3. Exploring with R&D initiatives

Even for businesses that have a core team, engaging an R&D team can be more efficient for developing and testing new Proofs of Concept. This approach saves both time and money.

The R&D team usually has the experience and capability to quickly develop and test the solution to determine if it brings value to the business. While the in-house team works on product features and enhances existing processes, the R&D team can conduct experiments, validate ideas, and after all, help with roadmap development, implementation, and education.

— Anna Panchenko, Customer Engagement Manager at N-iX

Conclusion

Money20/20 once again showed the transformative power of finance across industries, with technology as the key catalyst. It was a vibrant mix of networking, discovering new connections, and exploring opportunities for growth and collaboration.?

We were delighted to meet our clients and partners at the event, including the esteemed partners from Amazon Web Services (AWS) and Mitek Systems . We are excited about how our combined efforts can benefit companies in the finance sector.

At N-iX, we help companies across the whole financial ecosystem develop secure systems, extract valuable insights from their data, and enhance customer experience with highly personalized solutions.

Contact our team to learn more about our technological solutions for the finance industry.