AI, Data, and Security: Trends from Money20/20 Europe 2024

At N-iX, we have always been an active member of the European tech scene, with our experts attending numerous events every year to stay at the forefront of industry advancements. Finance has been our core domain expertise for years, making Money20/20 an event we couldn't have missed.

Who we are and why we are here

N-iX is a leading European software development company that provides technology solutions for various industries, with a significant focus on financial services. Our mission is to drive innovation and efficiency through cutting-edge technologies and exceptional delivery capabilities. Money20/20 is a key event for us to connect with industry leaders, explore the latest trends, and showcase our expertise in financial technology solutions.

The financial sector is witnessing a transformative shift, driven by technological advancements reshaping the delivery of financial services. This year's Money20/20 Europe, held from June 6-8 in Amsterdam, saw a record turnout, attracting a diverse mix of startups, enterprises, and tech companies. This blend of perspectives made it an excellent stage for discussions on the future of finance.

Representing N-iX at Money20/20

I, Yuriy Voloshynskyy, VP, Head of CoE for Finance at N-iX, along with my colleagues Anna Panchenko, Customer Engagement Manager, Volodymyr Hlushchenko, Associate Engagement Director, and Andrii Sharandakov, AVP Delivery, had the privilege of attending Money20/20. Engaging in numerous meetings and thought-provoking discussions, we aimed to decipher insights gleaned from the event and delve into critical questions surrounding the latest trends and enduring strategies within the financial services sector.

The main theme of Money20/20 Europe 2024

Money20/20 Europe in Amsterdam centered around the "Human X Machine" theme, exploring how finances will evolve as humans and intelligent machines collaborate. The focus was not on AI replacing humans but on enhancing their productivity. Sessions from Microsoft, Nvidia, Mistral AI, and Omdia emphasized that while the allure of cost-cutting through AI is tempting, the true winners will be companies that integrate the "human element" into their AI solutions. Even with excellent response times from AI agents, customers may still prefer having humans in the loop.

Popular use cases of generative AI

AI is revolutionizing financial companies by driving modernization, enhancing digital transformation, and helping build innovative products and services. From fraud detection and risk management to personalized customer experiences, AI has a wide range of applications in finance. However, not every organization is ready for them. Companies must ensure their data is ready and structured to fully leverage the power of AI.

Key applications of generative AI in finance

1. Routine operations optimization: Many companies sought products and solutions to optimize their internal operations. Regulators, like the Financial Conduct Authority in the UK, use AI for sanctions screening and monitoring market abuse.
2. Document processing: Generative AI revolutionizes document processing, which is beneficial for financial companies handling diverse documents such as loan applications, KYC documents, contracts, and regulatory filings. It can automate reporting by gathering data from various sources, analyzing it, and producing insightful, coherent reports.
3. Customer and employee experience: AI-powered chatbots and assistants enhance customer and employee experiences by providing account management, personalized financial advice, product recommendations, and easing the burden on support teams.
4. Hyper-personalization: Driven by advancements in generative AI and data analytics, financial organizations and fintech companies uncover hidden patterns and trends, offering proactive financial solutions and tailored marketing strategies for individual users.

The main challenge for financial firms in tech adoption

Data security is a major challenge as products become more personalized and companies gather more data. Companies need to be careful about how they collect, store, and use data. Despite accumulating vast amounts of customer data, many financial institutions have not yet found an effective approach to using it.

"Now is the time for companies to transform into data-driven organizations by building platforms that democratize data and analytics. With solutions like data warehouses, BI tools, data science, machine learning, and AI, companies can establish data management for better operational efficiency and new revenue opportunities." - Anna Panchenko, Customer Engagement Manager at N-iX

Dominating industry trends

1. Security and Fraud Detection: In the age of online transactions and fintech, security is paramount. New technologies like voice recognition, iris scans, and behavioral biometrics are gaining popularity, enhancing security and improving user experience. Processes like Know Your Customer (KYC) and Know Your Vendor (KYV) remain crucial for verifying identities, preventing fraud, money laundering, and other illegal activities.
   N-iX has strengthened its partnership with Mitek Systems, a global leader in digital identity and fraud prevention, to enhance its service offering and address the need for secure and efficient digital transactions.
2. Holistic customer experience: Companies are increasingly focused on delivering added value through comprehensive, integrated solutions. They aim to cover as many aspects of the client's business operations as possible for a seamless experience. Retailers and marketplaces, in particular, strive to own the entire end-to-end customer relationship, avoiding third-party payment providers.
3. Embedded finance: A BCG survey shows that 64% of merchants want financial solutions integrated into their systems. Innovations like tokenization, embedded checkout, passkeys, and biometric authentication reduce cart abandonment. One-click payments, mobile wallets, real-time processing, Open Banking, and Machine Learning algorithms all contribute to the expansion of this trend in finance.
4. Open Banking: Globally, Open Banking has led to a rise in API-based solutions integrating banking services into various platforms. Reasons vary by region, driven by either regulatory or market needs. Countries like the US, Saudi Arabia, and New Zealand have recently introduced relevant legislation. The upcoming PSD3 directive aims to further enhance open banking.

Effective strategies for financial institutions

1. Tapping into data capabilities: Financial services are becoming highly personalized thanks to AI and data analytics. Fintech firms use smart algorithms to analyze spending patterns, risk profiles, and investment preferences, providing tailored budgeting, saving, and investing advice. Business Intelligence tools help banks with precise risk evaluation, automation of data gathering, and basic reporting, segmenting the customer base, and more.
2. Advancing with Cloud: Businesses adopt the cloud to optimize costs, streamline service delivery, and simplify the management of various operations. For financial institutions, cloud technology offers advanced security measures, which are critical in banking and other financial companies.
3. Exploring with R&D initiatives: Engaging an R&D team can be more efficient for developing and testing new Proofs of Concept. This approach saves time and money. The R&D team can quickly develop and test solutions to determine their value to the business while the in-house team focuses on product features and enhancing existing processes.
   "R&D teams can conduct experiments, validate ideas, and help with roadmap development, implementation, and education." - Anna Panchenko, Customer Engagement Manager at N-iX

The financial sector's future lies in effectively integrating human insights with AI advancements. At N-iX, we are committed to leading this transformation, leveraging our expertise to help our clients navigate the evolving landscape of financial services.

Elevating financial services and fintech: N-iX's approach

At N-iX, we help companies across the financial ecosystem develop secure systems, extract valuable insights from their data, and enhance customer experience with highly personalized solutions. With over 20 years of experience and more than 250 successfully delivered finance projects, we offer comprehensive services for Banking, Capital Markets, and Insurance companies.

Our financial services include:

• Banking: Boost performance, streamline processes, mitigate risks, and tackle regulatory hurdles. We partner with Retail, Corporate, and Investment banks, as well as fintechs transforming into digital or neobanks.
• Capital Markets: Navigate market complexities with precision, optimize risk management, and enhance trading environments. Our solutions drive down operational costs and accelerate decision-making.
• Insurance: Leverage data insights and smart automation to boost fraud detection, improve underwriting, and enhance engagement decisions. We help companies innovate in product development and adapt to market demands.

Our fintech services include:

• Tech solutions for financial management and transactions: We build banking applications, payment systems, lending platforms, and other fintech solutions. Our expertise spans web and mobile banking applications, payment system integration, and more.
• Effective and secure financial data management: At the core of any modern fintech is a vast amount of data. We help streamline data workflows, create new opportunities, and establish robust data governance.
• Regulatory compliance: Managing extremely sensitive personal data requires high standards for security measures, API integration, and reporting systems. We assist fintech companies in complying with legislative and regulatory requirements.
• Customer lifecycle management: Our solutions speed up, simplify, and personalize the customer journey, helping optimize customer relationship management resources.
• Fraud prevention and cybersecurity: As financial systems grow more interconnected, cybersecurity becomes increasingly complex. We help build secure infrastructure, introduce new fraud-prevention systems, and establish security operations centers.

With a team of over 300 tech experts with financial services domain knowledge, N-iX is equipped to rejuvenate tech stacks, build secure systems, and introduce advanced technologies to traditional processes. We help financial institutions and fintechs navigate the complexities of standardization, compliance, and regulations, ensuring robust and innovative solutions.

At N-iX, we help companies across the financial ecosystem develop secure systems, extract valuable insights from their data, and enhance customer experience with highly personalized solutions. Contact our team to learn more about our technological solutions.