By Roy Urrico
Several financial technology industry experts provided Finopotamus with their post-conference observations, key trends and takeaways from FinovateFall, Sept. 9-11 in New York City in the first of a two-part summary of some of the post-FinovateFall comments provided to Finopotamus.
“There were about 2,000 attendees. It was a terrific show with 64 demos, great keynotes and panels. I do not know if this was the largest Finovate event, but I can tell you everyone here was fully engaged and active in the event,” William Mills, CEO and creative director at William Mills Agency, told Finopotamus. He added, “At many financial events there are a number of people at the event hotel but do not actively participate in an event. Finovate is different. Every person in attendance here plays a part in this event; attendees are either in the ‘big’ room, breakout rooms or exhibition hall.”
What technologies / innovations / topics stood out at this year's FinovateFall?
Glen Fossella, head of customer at Ascent: "It felt like the technology providers and discussion topics revolved around two main poles: artificial intelligence and fraud/security. So you could take your pick between visions at a distance or nightmares right up close. Conversations directly with banks and credit unions focused on cost savings and efficiency, which has been the theme all year. Hopefully the impending rate cuts will change the outlook and enable institutions to start moving onto a growth footing."
Joshua Jordan, digital engagement director, Jack Henry:
“Lots of discussion and demos surrounding artificial intelligence (AI) but the prevailing theme was around using artificial intelligence for fraud mitigation. In my opinion, the real winners were focused on customer/member engagement and deposit gathering.”
Pete Major, vice president of Fintech Solutions at Member Driven Technologies (MDT):
“AI was the princess of the ball during this year’s FinovateFall. While most companies demoing had some type of AI component, the companies that did not focus on AI really stood out among the crowd. You also saw security/fraud, digital transformation, customer/member experience, and efficiency being leading topics during the event (including the related AI technology).”
Barry Kirby, chief revenue officer (CRO) and co-founder, Union Credit:
“At this year’s FinovateFall, we saw a strong emphasis on embedded finance, AI-driven personalization, and digital lending platforms. Embedded finance is transforming how consumers interact with financial services by seamlessly integrating them into everyday platforms. AI was another key player, with innovations focused on predictive analytics, automation, and personalized user experiences. We also noticed a surge in solutions designed to enhance financial inclusion, helping consumers access credit and other financial products in new, simplified ways.”
Shreenath Regunathan, co-founder of Starlight:
“At this year’s FinovateFall, several technologies and innovations took centerstage. Embedded banking stole the spotlight, especially with its ability to drive engagement, retention and deliver new product features. There was also a significant focus on AI, particularly generative AI, along with embedded open banking, to fuel new products and innovations. Tons of companies used chatbots in their operations, though there was also fatigue associated with their usage. Unique applications of compliance automation were also highlighted, as well as the accelerated launch of new customer features, expected to go live in months through partnerships instead of two years of development.”
Will Tumulty, CEO, Rapid Finance:
“There were a lot of technologies focused on using AI technologies in lending and finance applications. A number were using generative AI for front-office functions for better customer interactions, with some focused on back office – particularly in fraud mitigation.”
Preethi Janardhanan, vice president of client solution, Rapid Finance:
The use of AI for streamlining operations was a big focus, as was using AI not just for automation but actionable insights to drive strategic decision-making.
There was significant attention on fraud prevention through machine learning (ML) models that leverage predictive analytics. Identity verification for fraud mitigation is also evolving, with voice authentication and biometrics joining traditional verification methods.
This year saw a greater emphasis on credit unions, with more topics and discussions tailored to their needs, and a noticeable increase in credit union attendance.
Regulatory issues were a recurring theme, especially regarding compliance with the new Consumer Financial Protection Bureau (CFPB) changes and other emerging regulations.
The responsible use of AI and its future potential were also hot topics, with many noting that we are only beginning to explore AI's possibilities.
William Mills, William Mills Agency:
“Most organizations have an AI component in their offering. You are seeing that as embedded AI. That is a theme that you are seeing a lot. Banking as a service has really got tamped down, but the regulators are, are not excited about, banking as a service. So, I got the impression that BaaS was way down in popularity this year. Now it might come back, but I think it depends on the regulators.”
How do you see these trends impacting the industry in the next few years? Any unexpected themes that emerged?
Glen Fossella, head of customer at Ascent:
"Ascent is in the experience business, and while "experience" almost always equates with "customer", a lot of the conversations were about middle-office: how can we make the banker experience better, including flexible and dynamic workflows, and access to data that is actionable. For a decade, fintechs have been pushing solutions that cut out the banker and now we see the results: customer-facing platforms that are over-engineered, brittle, and yielding high abandonment rates. Many tout AI as the panacea for these ills, but maybe we've been putting the cart before the horse. Maybe, for the foreseeable future anyway, the focus should be on the banker and leveraging AI for decision support, versus inflicting bleeding-edge technology on the customer."
Steve Reider, president and co-founder, Bancography:
“Overall, the absence of branch-related technologies was notable. The fact is, if we consider fintech as the intersection of banking and technology, then the branch network may hold as many applications as the digital world. For example, ITMs (interactive teller machines) fall under that domain, as would biometric scanners for safe deposit vaults, and check-fraud detection systems. What if a vendor could offer an improved way to detect fraudulent checks presented for cashing? Huge issue facing the industry right now and one where a tech solution could have big financial impacts.” “Tech that reduces the time and/or risk of everyday tasks like those can have major benefits to staff cost and job satisfaction when multiplied times an entire branch network. Can we use predictive modeling to foster more effective cross-sell, and identify and forestall potential attrition? Years ago, these were issues CRM (customer relationship management) systems sought to resolve – can newer tools take us to the next step? May not be as sexy as the newest digital payments app; but again, consider every task a teller or CSR (customer service representative) performs…surely there are means where tech can improve, but there were few if any such tools on display.”
Joshua Jordan, Jack Henry:
“My summation is while the tech that many of the AI vendors have is good, the data (or access to data) is lacking in so much as to create a really powerful model to build the AI from. Most companies are utilizing publicly available data for their models, and they really should have a lens into the proprietary data of the financial institution (FI) for meaningful engagement. I see AI continuing to be a dominate talking point for the foreseeable future, and I hope the access to data becomes an enhanced focus.”
Pete Major, Member Driven Technologies (MDT):
“We expect to see more and more about AI, which means financial institutions have to get their ducks in a row on their plans regarding AI. They have to understand what they are getting into, ensure they have the proper policies and controls in place, and know the marketplace of vendors that are supporting AI initiatives. You cannot stick your head in the sand and hope this will pass. It is not going to pass, and we think at some point, every solution is going to have some component of AI.”
Will Tumulty, Rapid Finance:
“Over the next few years, I expect that financial companies will move from learning how to use AI and ML (machine learning) to actually deploying it in their systems environment to generate value in their business processes through cost reduction, better customer service, improved underwriting, and fraud mitigation. The main challenge seems to be having clean and robust in-house data that can be used to train the models. Having and maintaining clean and organized data that ties origination information to ultimate outcomes is a big challenge for most organizations.”
Preethi Janardhanan, Rapid Finance:
“Another trend I foresee is more trust and sharing among peers. We are coming together more and more to talk about our problems and strive towards joint solutions. This collaboration will take more of a forefront. After all, the fraudsters are collaborating and so should we.”
“Additionally, we are seeing collaboration between fintech startups and traditional financial institutions. Many banks are recognizing the need to partner with tech innovators to bring AI capabilities to market more quickly, rather than building everything in-house. This trend of fintech partnerships is likely to accelerate, providing even more opportunities for innovation in the industry.”
“Another emerging theme is regulatory scrutiny around AI adoption. As AI becomes integral to decision-making in areas like lending and fraud detection, regulators may place more focus on algorithmic transparency and ensuring AI-driven decisions are fair and unbiased. Financial institutions will need to be prepared for these evolving regulations, which could shape the way AI tools are designed and deployed.”
Shreenath Regunathan, Starlight:
“There is increasing focus on regulations related to banking-as-a-service (BaaS) and broader payment activities. The changing economy is placing more emphasis on serving the average American, moving away from the focus on rising income groups seen over the last 3-5 years. And, there is a growing use of generative AI operating behind the scenes.”
Barry Kirby, Union Credit:
“Embedded finance will further blur the lines between banking and everyday commerce, offering personalized financial solutions at the point of need. AI-driven personalization will become essential as consumers expect tailored experiences, while financial inclusion will expand as more platforms embrace simplified, accessible financial services. An unexpected theme was the increasing focus on partnerships between fintechs and traditional financial institutions, signaling a future where collaboration is key to driving innovation and growth across the industry.”
More observations and comments in part 2 tomorrow.