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Writer's pictureW.B. King

Fintech and CU Insiders Forecast Upcoming Year’s Industry Trends

By W.B. King


FinovateFall 2022, which took place mid-September at the New York Marriot Marquis, offered sessions, demos, panels and keynotes speeches on a myriad of issues impacting the financial services and fintech industries. And while Finopotamus was onsite providing detailed coverage of the event, there is still more unpacking to do. So, here are a handful of industry insiders providing respective thoughts on tech trends to watch in the coming year.


Consumer Permissioned Data

“The industry is moving toward more and more of a consumer permissioned data, so there is a lot of data and we have been doing a phenomenal job aggregating it, but until the consumer releases it, we can’t get to it,” said Estela Nagahashi chief operating officer at the Los Angeles-based University Credit Union, which serves more than 50,000 members. “How to get to that data and work with them,” will be her focus.


Artificial Intelligence and Machine Learning


Experian’s Executive Vice President and Chief Product Officer Gregory Wright said the industry is at a “convergence in technology,” which “enables something that we have never been able to do before—pull multiple data sources together and do advanced analytics in ways we have never been able to do before.”

Billed as the “world’s leading global information services company,” Experian employees 20,600 people across 43 countries.


“So, leveraging artificial intelligence and machine learning models in new ways with multiple data sources, that’s the trend I think that is going to change the industry,” Wright said.


Finalytics CEO Craig McLaughlin agrees, noting that “artificial intelligence is the future.” The San Francisco-based company’s mission is to “use technology to help financial institutions offer the same exceptional service they are known for in-branch, online.”

McLaughlin continued. “We are creating so much data every year and the ability to process through that data is only getting harder. You need ways to make that easier and AI (artificial intelligence) is certainly the tool for the job.”




Laura Kornhauser, co-founder and CEO of the New York City-based “ethical” AI company, Stratyfy, said the next 12 months will be focused on “very detailed transparency in machine learning solutions and how that can drive greater understanding of how those solutions actually work, which means they will be adopted by a wider group of individuals and corporations.”


Embedded Payments

Kathleen Pierce-Gilmore, head of Payments for the Santa Clara, Calif.-based Silicon Valley Bank, said embedded payments will evolve. “I think there is going to continue to be a lot of innovation across the value chain of delivering embedded payments—both for the bank and the companies that are innovating in that space,” she continued. “From risk management to stronger operations support — even quality assurance and customer experience monitoring — all of the parts of the value chain are going to continue to have a lot of innovation.”


Fraud, Security, Business Intelligence, Crypto and Payments

Chad Rodgers, senior vice president and chief operating officer for the Wausau, Wis.-based Connexus Credit Union, which supports more than 440,000 members, said his focus will be on “fraud mitigation and security, business intelligence, cryptocurrency, money movement and payments.”


Simplification

Bill Harris, CEO of the Miami-based Nirvana Money, which offers a challenger digital credit card, said the most important step the industry should take in 2023 is simplifying operations. “We have so overcomplicated the notion of working with your money that it’s time we get rid of all the different apps, all the different accounts and all the different fees and make it simple.”


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