At this year's Money20/20 conference, held in Las Vegas from October 22-25, BI Intelligence identified three emerging trends that will likely dictate much of the innovation in the payments space over the next year: AI's emergence in financial services, a reinvigorated focus on payments security, and partnerships to chase the network effect.
1. Financial services firms are captivated by how AI might revolutionize their businesses. However, the number of AI-specific announcements from major players was relatively limited compared with how much of the dialogue at the conference centered on future use cases.
Here are a few major AI announcements from the conference:
- AI technology firm Clinc partnered with financial services provider Enacomm on a reseller agreement that will bring Clinc’s “Finie” technology, which helps banks collect data, personalize product offers, and create a “tailored customer experience,” to more financial institutions across the country.
- Personetics, a cognitive banking company, showcased how banks can leverage AI to “nudge” customers — giving them short, tangible steps to encourage specific behaviors — as a means of improving financial behavior and growing engagement.
- In a panel discussion, Apple co-founder Steve Wozniak noted that the key to industry success will be investing in AI and building “centralized teams” focused on deploying it in ways that augment rather than replace humans.
In general, the most mature use cases of AI are on the back-end. Thanks to recent advancements in natural language processing (NLP), conversational use cases, like messaging app bots, are receiving attention from financial services providers. But they’re far from the most natural applications of AI technology — big data and analytics tools, risk and fraud prevention platforms, and regtech offerings are among many areas in financial services where AI is driving more significant returns today.
With so much hype around AI's potential, it's important to focus on the real problems it can solve.
- Banks think AI has the potential to fundamentally change customer interactions. Seventy-nine percent of financial institutions think AI will “revolutionize” the way financial firms interact with consumers, [...]