Fintech Insights - Tech Trends 2024 - D3_1.mp4

Fintech Insights - Tech Trends 2024 - D3_1.vtt

ENGLISH

{{00:00:08}}
In all seriousness, I don't think that
DeFi is really shaping the financial

{{00:00:14}}
services landscape at the moment.

{{00:00:17}}
DeFi is, of course, something that
everybody has got on their radar.

{{00:00:22}}
With traditional financial institutions,
established banking institutions,

{{00:00:27}}
they're all aware, they're keeping
on top of the trend, they're

{{00:00:31}}
seeing what's happening with it.

{{00:00:32}}
But is it really shaping?

{{00:00:35}}
No, I don't think it's shaping, and
blockchain as well, not shaping.

{{00:00:39}}
Yes, blockchain is now what, nearly
over 10 years old as a technology,

{{00:00:46}}
people have got awareness of it, they're
understanding more and more how to use

{{00:00:50}}
it to simplify internal operations.

{{00:00:53}}
But for me, it's not the actual
technology, it's the conversation about

{{00:00:57}}
blockchain that is helping people unravel
their previously complicated processes.

{{00:01:02}}
So it's not necessarily a
technology discussion, but a

{{00:01:07}}
discussion about technology.

{{00:01:09}}
That is taking place in big institutions
and leading to better outcomes.

{{00:01:13}}
So I believe there are interesting
initiatives in infrastructures

{{00:01:18}}
that I closely follow.

{{00:01:20}}
And that can really change the way
we, can do payments, for instance.

{{00:01:24}}
So I don't specifically talk about DeFi,
but rather blockchain technology and

{{00:01:28}}
how blockchain can support payments and
settlements across the globe to facilitate

{{00:01:34}}
transfer between the different continents
and in exotic currencies, for instance.

{{00:01:40}}
So once I become a

{{00:01:48}}
customer, what technology, what can
technology do to really make this

{{00:01:54}}
a seamless experience, to make you
understand my needs and From that

{{00:01:58}}
perspective there is a massive role
for machine learning and AI here.

{{00:02:03}}
So one failure that we're really
seeing here is that we're not seeing

{{00:02:08}}
digital experience personalize
enough for consumers, right?

{{00:02:12}}
You can't personalize at scale by doing
manual rules setting up algorithms.

{{00:02:19}}
You actually need to be experimenting and
you need to be experimenting at scale.

{{00:02:23}}
So to do this, you really need
machine learning and AI to

{{00:02:26}}
be able to think about that.

{{00:02:28}}
That your customers aren't
16 segments or 20 segments.

{{00:02:31}}
There are thousands of customer
segments, and the only way to be able to

{{00:02:35}}
experiment, to know what's right, what
to communicate, and where to communicate,

{{00:02:39}}
is really using experiments, hypotheses
that you set, and you learn from AI, and

{{00:02:46}}
you teach the machine to go, and then
you teach them to allocate accordingly.

{{00:02:50}}
I think that they already have been
playing a role particularly large language

{{00:02:55}}
models and, machine learning have been
playing a role for a number of years

{{00:03:01}}
and I think it's getting a lot better.

{{00:03:02}}
Things like risk modeling, behavioral
analytics, predictive analytics even

{{00:03:08}}
pricing all of these are important.

{{00:03:12}}
Becoming better, just exponentially
better through the application of AI.

{{00:03:19}}
Recently I had read a case study about
how one large financial institution

{{00:03:26}}
had used AI to have a look at a card
compromise to find out where and how

{{00:03:34}}
it happened and to resolve the problem.

{{00:03:37}}
And also to communicate to
everybody within minutes, something

{{00:03:40}}
that would have previously taken
potentially weeks to happen.

{{00:03:44}}
So I definitely think that AI in
fraud detection, a massive thing,

{{00:03:51}}
but Here's the thing to remember,
the fraudsters are also using AI.

{{00:03:55}}
So fraud is becoming more prevalent
through the application of AI.

{{00:04:01}}
You must have seen the thing recently
about the bank CEO who's joined

{{00:04:07}}
a Zoom call, and yet it wasn't
him, it was a video of a bank CEO.

{{00:04:11}}
CEO joining a Zoom call where they
used AI to generate the video,

{{00:04:16}}
replicate his voice, and it fooled
staff and a large transaction

{{00:04:21}}
was made in his name as a result.

{{00:04:23}}
So remember that as much as AI is
being used to combat fraud, it's

{{00:04:28}}
also used to proliferate fraud.

{{00:04:30}}
And at the moment, I think having a
look at your, customers and seeing how

{{00:04:35}}
easy they might get duped is something
that people have to be more mindful of.

{{00:04:40}}
So

{{00:04:47}}
this is very definitely where Embedded
Finance comes into play through the

{{00:04:51}}
use of APIs, cloud partnerships with
other financial institutions, fintechs

{{00:04:58}}
people playing together nicely.

{{00:05:00}}
It's all about bringing those
financial services together.

{{00:05:04}}
to the customer.

{{00:05:05}}
So bring the bank to the customer.

{{00:05:07}}
In the old days, we
used to go to the bank.

{{00:05:10}}
Now the bank can come to us
whenever, wherever we need it.

{{00:05:15}}
So embedded finance is the key
trend and topic in this area.

{{00:05:22}}
But again, always got to
have a bit of a caveat.

{{00:05:25}}
While you look at customer journeys, it is
just It's just as important to understand

{{00:05:31}}
those points in which your customers
will want to have a human in the loop.

{{00:05:36}}
There is still an important element
where you can get to a place where

{{00:05:41}}
you get caught in a digital hell.

{{00:05:43}}
And as, as much as all of us want more
digital and to be able to do everything

{{00:05:49}}
on our mobile phone I'm looking forward
to the day where I can buy my next

{{00:05:53}}
house just using my mobile phone.

{{00:05:55}}
And it's going to be possible.

{{00:05:56}}
I'm going to be able to do my mortgage.

{{00:05:57}}
I'm going to do the whole application.

{{00:05:59}}
The whole thing is going to
be done as easy as we do a

{{00:06:02}}
commercial transaction today.

{{00:06:04}}
But occasionally, You will have those
points where you just need to speak

{{00:06:09}}
to a human, and I've just gone through
that recently, I'll blog about it

{{00:06:13}}
soon, I promise, but I needed a human
in the loop, and it was only a human

{{00:06:17}}
that could resolve the problem that
I had with a neobank, remember that.

{{00:06:22}}
You should make a difference between
big companies like UBS or Goldman

{{00:06:27}}
Sachs and smaller Tier 2 or Tier 3
banks for instance because you don't

{{00:06:33}}
have the same resources internally.

{{00:06:36}}
In both situations, big
players and small players.

{{00:06:39}}
They have to work hand in hand
with FinTech, that's for sure.

{{00:06:44}}
But what I see is that big players have
more means to develop internally, do

{{00:06:49}}
solutions, and to be honest, impress me in
some ways in the way now they facilitate

{{00:06:58}}
their user experience for their clients,
be it individuals or corporate clients.

{{00:07:10}}
In the financial sector more than And
maybe in health is the, other sector

{{00:07:16}}
that is very concerned with data privacy.

{{00:07:19}}
You don't have the choice
because the fines in all the

{{00:07:22}}
different countries are huge.

{{00:07:25}}
So I believe that most of the
time players new players, new

{{00:07:30}}
entrants, but also in Cubans Cubans.

{{00:07:32}}
Take it very seriously and when it's
regulated, of course, you don't have the

{{00:07:37}}
choice because you have to show to your
financial regulator that you are proofed

{{00:07:44}}
and that you follow strictly GDPR and
all related, regulation and policies.

{{00:07:51}}
When we think about seamless digital
experiences I look at it on, two sides.

{{00:07:57}}
One, which is how do I become a customer?

{{00:08:00}}
of Neobank, of FinTech, of a bank, right?

{{00:08:06}}
And that area is full of
technological innovation here.

{{00:08:12}}
So when we think about how do I make it
a lot easier to to support my customer

{{00:08:17}}
information programs, to do identity
and verification, this brings in all

{{00:08:23}}
the technology that's available in
terms of protection, for cybersecurity,

{{00:08:27}}
for fraud, for identity theft.

{{00:08:29}}
And that really links to thinking
about the FinTechs that support this.

{{00:08:34}}
So when we think about, more
broadly, can we use more sources

{{00:08:38}}
to help support identification
within the digital experience?

{{00:08:42}}
So that the customer's not actually
pushed out for manual review, for example.

{{00:08:48}}
What can actually be done?

{{00:08:50}}
Do we have enough databases?

{{00:08:52}}
Are we using machine learning and
AI to identify the customer and

{{00:08:56}}
account opening so that they can
truly have that sort of end to end

{{00:09:00}}
digital account opening journey.

{{00:09:01}}
So I think here
tokenization is a big thing.

{{00:09:05}}
Tokenize it so that we're not
using genuine credentials.

{{00:09:09}}
We've got zero knowledge
proof and multiple different

{{00:09:11}}
technologies whereby our privacy
as consumers is being protected.

{{00:09:17}}
And when there are data breaches and
data leaks your exposure is minimized

{{00:09:23}}
through things like tokenization.

{{00:09:25}}
And As I said in the Hot or Not,
cybersecurity is top of mind for

{{00:09:31}}
pretty much, I think a recent
report said, 86 percent of all banks

{{00:09:36}}
surveyed, their senior management
had cybersecurity as their number one

{{00:09:40}}
investment priority over the next year.

{{00:09:43}}
It's huge.

{{00:09:44}}
That's the only way you maintain trust
and reputation with your customers.

{{00:09:54}}
So I think all of us have got
this feeling, all of us in the

{{00:09:57}}
financial services field have got
this feeling that the regulator

{{00:10:01}}
always lags behind technology.

{{00:10:04}}
And we've had this problem for years
and in the UK and Singapore and

{{00:10:08}}
places like that, the regulators
are really going that extra mile

{{00:10:13}}
to try and keep the best of trends.

{{00:10:15}}
But we know that regulation
is It takes a while to manage.

{{00:10:19}}
And in the last year in the UK, we've
had the Consumer Duty Act, we've had

{{00:10:23}}
new crypto regulation, we've had a
whole plethora of regulation that has

{{00:10:28}}
come out that has been long overdue.

{{00:10:31}}
All of it, I personally believe,
is going to take a while.

{{00:10:34}}
Is giving better outcomes
to the customers.

{{00:10:37}}
Now, interestingly, I was sitting in
a panel recently where I was listening

{{00:10:42}}
to somebody talking about the new
regulation around wealth management in EU.

{{00:10:46}}
And they had said that their bank
is embracing regulation As a way to

{{00:10:54}}
deepen their relationship with their
customer, because new regulations

{{00:10:57}}
are requiring them to go through a
whole host of due diligence that,

{{00:11:02}}
was lacking in the bank before.

{{00:11:04}}
And instead of treating this as an
administrative exercise, They're

{{00:11:09}}
actually using it as an opportunity to
say we've now got a point of customer

{{00:11:13}}
contact that we are obliged to do.

{{00:11:16}}
While we are contacting this
customer, what can we do?

{{00:11:19}}
How can we use that opportunity to
get to know the customer better?

{{00:11:23}}
So regulation, I think, will always
be seen as a necessary evil by us

{{00:11:29}}
in the financial services industry.

In all seriousness, I don't think that
DeFi is really shaping the financial

DeFi is, of course, something that
everybody has got on their radar.

With traditional financial institutions,
established banking institutions,

they're all aware, they're keeping
on top of the trend, they're

No, I don't think it's shaping, and
blockchain as well, not shaping.

Yes, blockchain is now what, nearly
over 10 years old as a technology,

people have got awareness of it, they're
understanding more and more how to use

But for me, it's not the actual
technology, it's the conversation about

blockchain that is helping people unravel
their previously complicated processes.

So it's not necessarily a
technology discussion, but a

That is taking place in big institutions
and leading to better outcomes.

So I believe there are interesting
initiatives in infrastructures

And that can really change the way
we, can do payments, for instance.

So I don't specifically talk about DeFi,
but rather blockchain technology and

how blockchain can support payments and
settlements across the globe to facilitate

transfer between the different continents
and in exotic currencies, for instance.

customer, what technology, what can
technology do to really make this

a seamless experience, to make you
understand my needs and From that

perspective there is a massive role
for machine learning and AI here.

So one failure that we're really
seeing here is that we're not seeing

digital experience personalize
enough for consumers, right?

You can't personalize at scale by doing
manual rules setting up algorithms.

You actually need to be experimenting and
you need to be experimenting at scale.

So to do this, you really need
machine learning and AI to

That your customers aren't
16 segments or 20 segments.

There are thousands of customer
segments, and the only way to be able to

experiment, to know what's right, what
to communicate, and where to communicate,

is really using experiments, hypotheses
that you set, and you learn from AI, and

you teach the machine to go, and then
you teach them to allocate accordingly.

I think that they already have been
playing a role particularly large language

models and, machine learning have been
playing a role for a number of years

Things like risk modeling, behavioral
analytics, predictive analytics even

Becoming better, just exponentially
better through the application of AI.

Recently I had read a case study about
how one large financial institution

had used AI to have a look at a card
compromise to find out where and how

And also to communicate to
everybody within minutes, something

that would have previously taken
potentially weeks to happen.

So I definitely think that AI in
fraud detection, a massive thing,

but Here's the thing to remember,
the fraudsters are also using AI.

So fraud is becoming more prevalent
through the application of AI.

You must have seen the thing recently
about the bank CEO who's joined

a Zoom call, and yet it wasn't
him, it was a video of a bank CEO.

CEO joining a Zoom call where they
used AI to generate the video,

replicate his voice, and it fooled
staff and a large transaction

So remember that as much as AI is
being used to combat fraud, it's

And at the moment, I think having a
look at your, customers and seeing how

easy they might get duped is something
that people have to be more mindful of.

this is very definitely where Embedded
Finance comes into play through the

use of APIs, cloud partnerships with
other financial institutions, fintechs

It's all about bringing those
financial services together.

In the old days, we
used to go to the bank.

Now the bank can come to us
whenever, wherever we need it.

So embedded finance is the key
trend and topic in this area.

But again, always got to
have a bit of a caveat.

While you look at customer journeys, it is
just It's just as important to understand

those points in which your customers
will want to have a human in the loop.

There is still an important element
where you can get to a place where

And as, as much as all of us want more
digital and to be able to do everything

on our mobile phone I'm looking forward
to the day where I can buy my next

The whole thing is going to
be done as easy as we do a

But occasionally, You will have those
points where you just need to speak

to a human, and I've just gone through
that recently, I'll blog about it

soon, I promise, but I needed a human
in the loop, and it was only a human

that could resolve the problem that
I had with a neobank, remember that.

You should make a difference between
big companies like UBS or Goldman

Sachs and smaller Tier 2 or Tier 3
banks for instance because you don't

In both situations, big
players and small players.

They have to work hand in hand
with FinTech, that's for sure.

But what I see is that big players have
more means to develop internally, do

solutions, and to be honest, impress me in
some ways in the way now they facilitate

their user experience for their clients,
be it individuals or corporate clients.

In the financial sector more than And
maybe in health is the, other sector

that is very concerned with data privacy.

You don't have the choice
because the fines in all the

So I believe that most of the
time players new players, new

Fintech Insights explores tech trends in the fintech industry at Finovate Europe 2024 from speakers Andrew Vorster,
CEO at Innovation Catalyst, Solenne Niedercorn-Desouches, Independent Director, Host at Finscale and Suraya Randawa, Head of Omnichannel Experience at Curinos.