Fintech 2020: re-evolution, second part
Payments and banks are evolving, pushed by the evolution of technologies. This page is about the last part of the TRUSTECH conference dedicated to fintech.
The Promise of Technology in Digital Payments
The promise of technology is to deliver value to both consumers and merchants. The model of engagement is currently changing, from “brick” to glass (smartphone or laptop) and air (contactless payment). E-commerce started a movement followed by the expansion of consumers becoming actors and no longer spectators of consumption, rating products and services they bought.
The pace of change is also increasing at an incredible rate. For instance, the first 50 million users have been reached by phone in 78 years, though only 10 years were enough for Facebook to reach the same level. Three main forces are driving those innovation: technology, regulation and the consumers. The last experience becomes the next expectation for the consumers.
Technology changes our world in a lot of manners: Big Data, machine learning, artificial intelligence, biometrics, quantum computing, blockchain, cloud services, smart speakers, etc. AI is in the process of changing every single industry as we know, as much as electricity did a hundred years ago.
Although, being a company with a website doesn’t mean you’re an Internet company, and an Internet company with a neuro network isn’t an AI company. Being an AI company means you have to structure yourself to take advantage of those technologies, find areas of value which really speaks to consumers:
- Convenience with security: if you can combine a frictionless experience for the consumer with a strong security, you have a great environment for consumers.
- Mass personalisation: we’ve lost the interaction with the old proximity shops, where customers personally knew the owners, who were able to give them exactly what they wanted. Noone wants today to be just a number, and AI allows to personalize those relationships.
- Automation with control: if you automate all the transaction, you loose control, but you can automate an extreme majority of your process, keeping an eye on the sensitive points of your bills only.
- Value of technology: to low the costs while gaining speed and performance.
AI delivers customisation, speed, coolness, security and the consumer benefits from it. Engender loyalty is the new way of engaging costumers. To do so, companies must be able to answer to their needs, add convenience and trust.
Speaker: Daniel KORNITZER, Paysafe
Paying by Finance - Why Every Millennial Wants In
Millennials are born between 1990 and 1996. It’s important for financial solution providers to focus on them because this generation has money. They spend a lot of time online, in average 53 hours per week:
- 2/3 millennials already banked online.
- ¾ are willing to take financial products from brands they really trust and with which they engage on a regular basis.
This generation is the first one to be more indebted and poorer than the previous one. The 2008 crash had also a huge impact, and every millennial knows somebody who lost a car, a house or is still looking for a job. That’s why they all need for control. If credit cards provide flexibility, they don’t provide control on managing debt and credit.
In the US, 40% are regularly looking for alternative financial options, and in the UK, within 50 to 70% of 35 years old have already had a loan with an alternative provider, not their bank. Divido make sure that when the customers are making their buying decisions, providers are there to offer them credits. This service also provides integration with retailers and e-commerce platforms.
Speaker: Iain KEDZLIE, Divido