For two days, January 29-30, Paris has become the capital of FinTech, hosting the most prominent European event on digital finance — Paris FinTech Forum 2019. This major international conference has exceeded all expectations and brought together 2,600 participants, 280 FinTech CEOs, and 180 industry leaders from 75 countries.
Paris FinTech Forum 2019 is a high-end event placed in 2 exhibition halls, 4 exceptional stages, 2 workshop rooms, and 8 lounges for networking. As the forum aimed at showcasing the latest developments and trends in the financial industry, Intellias was there to capture all the insights firsthand.
Our FinTech practice Leader, Solomiya Zahray, was one of the PFF 2019 attendees and have already shared her impression of the first day at PFF 2019. And now, she’s sharing most trendy and innovational ideas from the second day at the conference.
The future of FinTech: entering adulthood
The global FinTech ecosystem has come to its maturity stage. With significant developments in digitalization, open banking, digital identity, data, and Artificial Intelligence, 2018 was an excellent year for FinTech. According to industry thought-leaders speaking at PFF these days, 2019 promises to be yet another productive and structured year for the financial sector. Mastercard, for example, has outlined the new 2019 trends that will shape the FinTech future:
- Adoption of Machine Learning and Artificial Intelligence across financial services: Personal Finance and Credit Scoring, Asset Management and WealthTECH, Chatbots, InsurTech, Regulatory Compliance
- SME’s as next battleground for FinTech
- New challenger banks going mainstream
- Partnering and Collaborations between incumbents, FinTech firms, and tech giants
- Open banking leveraging APIs driven by Europe’s PSD2 regulation
How will these trends impact the industry? Which challenges will they pose? Are financial institutions ready to the upcoming changes? Let’s try to briefly define the essentials based on the insights we’ve heard at Paris FinTech Forum 2019.
Data world and the battle of identities
Big data is revolutionizing the world of FinTech. Around 90% of the data of all human history has been produced in the past year — 2018 saw 3.5 trillion pieces of data exchanged.
The challenges of massive data management have been at the heart of an exciting debate led by a panel of experts: Dorian Selz, CEO of Squirro (CH), Yves-Gabriel Leboeuf, CEO of Flinks (CA), Michael Finkelstein, CEO of The Credit Junction (US), Benoit Gruet, CEO of CDLK Services (FR), Caroline Plumb, CEO of Fluidly (UK). The experts have agreed that is not the case to collect data, but to define the most valuable pieces and make it work.
And what about security? As ownership of data is a basic human right, it’s utterly important to regulate financial institutions can use consumer data. Digital identity is considered to be one of the keys to help financial institutions maintain cybersecurity both of their assets and customer data in the digital age.
Online ID verification allows you to share anti-fraud techniques across services, in a much more scalable way than offline methods.
As connectivity and digitalization transform everything, you can’t rely on traditional methods of solving everyday financial routine. Physical identification with human interactions and loads of documents is ridiculous today. Businesses require fast, efficient, and secure processes, and digital ID authentication is one of them.
Decentralization and anti-fraud were the hot topics of 2018, and they will inevitably migrate to 2019. During the panel discussion on digital identities, Guillaume Despagne, Chairman at AriadNEXT (FR), Husayn Kassai, CEO of Onfido (UK), Patrick Kleuters, SVP Gemalto Europe at Gemalto (FR), and Rupert Spiegelberg, CEO of IDnow (DE) agreed that in several years we will have a fully decentralized identity system. Every individual will own their ID and control its use in a fully encrypted space. But there’s one pitfall — the lack of trust.
This year, FinTech has to focus on how to make people trust data and digital identities to increase onboarding. Finally, Europe has introduced comprehensive consumer data regulations in the form of Second Payment Services Directive (PSD2) and General Data Protection Regulation (GDPR). While lots of people refuse to trust the intrusive nature of technology, such regulations will undoubtedly help eliminate fears that data in wrong hands will manipulate lives.
Future of money: How digitalization of finance is transforming economies?
Digitalization of payments is important for the economy. It helps small business to thrive but also decrease the shadow economy, which is still an issue in several countries in Europe.
People no longer need banks to manage their money and finance. That’s why physical banks have to digitize their assets and work processes. And that’s why challenger banks have an edge: they can introduce new approaches to serving customers and provide new offers.
Focus on fast, easy and secure. Because we should not forget: for customers banking is boring; money is interesting.
Money digitalization improves security and ensures frictionless payments. As payment systems are an essential pillar of any financial system worldwide, FinTech of 2019 should be oriented toward making them customer-focused and efficient. Financial institutions on the leading edge of the digitized trends will the benefits of greater customer reach and the adoption of new business models.
Paris FinTech Forum 2019: the bottom line
Paris FinTech Forum addressed all critical issues of digital finance: the two days of the conference were full of valuable information and actionable insights. Today, technologies create many opportunities for financial institutions to grow. But to win the market, banks and financial institutions have to be open to innovations.
Intellias was at PFF 2019 to grab the trends that will shape the FinTech future. Now, being armed with the hottest ideas, we’re more than ever ready to consult you on the innovational solutions and technologies to enhance your financial services.
Contact our FinTech strategic leader, Solomiya Zahray, to keep up with the industry trends introduced at PFF 2019 and discover how to solve your business challenges with up-to-date technologies.