Has there ever been a more interesting time to be part of the financial sector? I dare to doubt it, because never before has there been the potential for truly transformational changes as in the current Open Banking era. Drivers of change such as regulation (PSD2), technology (AI, distributed ledger) and consumer behavior, have created the perfect environment for the arrival of new players and new client-oriented solutions that put pressure on existing business models. In short, the payment world is facing major changes and Money20/20 offers an excellent platform for getting to know these changes and the new players in the payments, fintech and financial services ecosystem.
Full range of stakeholders
Last year, when I first attended Money20/20 in Amsterdam, I noticed that the community that visits the event was very diverse. The depth and breadth of attendees, both from new and traditional players in the payment world, provides the ideal platform to exchange ideas and views: that makes this event special. What I also like about Money20/20 is that it does not only cover European initiatives and views, but there is also space to discover non-European business models and payment infrastructures.
Last year, the presentation on India Stack, an ambitious project in which a unified software platform should bring India into the digital age, was impressive and thought-provoking. It shows once again that the future of payments does not have a clear-cut framework, but that infrastructures develop based on respective regional landscapes. This is something that we in Europe should keep in mind. We should not be entirely consumed by PSD2 and Open Banking, but we should remain open to be inspired by alternative models.
Increase value of the initial payment
Sometimes we focus too little on the economic value of payments beyond the payment itself. For example, the rich value of payment data, applied well using advanced data analytics, can help create contextually relevant interactions between merchants and customers and banks and customers. And these can increase the value of the initial payment, for example by offering discounts or offers, but also by means of a financial management app that advises customers on how to save money with the help of payment data. I am hoping to see this discussed during this year’s Money20/20.
I would also like to know more about the value proposition of instant payments, apart from the fact that direct payments are executed in a matter of seconds and 24/7. What role and what benefits does the market see for instant payments? Here, too, I expect the customer to play a central role.
Surrounded by visions
During Money20/20, I will be surrounded by visions and trends from the world of payments for three full days and I will be recording my findings during the event in a number of articles on this blog. I hope to find answers to my questions and discover much more during this interesting event.