New Applications in Fintech

TL;DR

The word fintech will disappear in the next two years as embedded finance becomes the new norm, with AI playing a transformative role.

Transcript

that's why I hope in the next two years the word fintech will will disappear and it will be embedded Finance because they've got distributions they've got the consumer right so let's start with generative Ai No Joke you promised us you were starting with a joke I have I have many jokes none of them were uh quite acceptable for the audience I I do h... Read More

Key Insights

• 💳 Fintech is moving towards becoming fully fintech-enabled, leveraging AI to disrupt areas such as credit modeling and fraud detection.
• 👾 Embedded finance presents an opportunity for every company to enter the fintech space and leverage their existing distribution and consumer base.
• 🤗 The digitalization of payment cards opens up new avenues for consumer engagement and personalized rewards.

Questions & Answers

Q: How is AI expected to transform credit modeling and fraud detection in financial services?

AI has the potential to revolutionize credit modeling by enabling new risk assessment models and offering more accurate predictions. Similarly, AI can enhance fraud detection by identifying real-time fraudulent activities and manufacturing fraudulent identity verification checks, challenging the current fraud reduction methods.

Q: What role does embedded finance play in the future of fintech?

Embedded finance allows every company to become a fintech company by leveraging their existing distribution and consumer base. By integrating financial services into their offerings, companies can provide seamless payment experiences and drive consumer engagement.

Q: How can the digitalization of payment cards contribute to increased consumer engagement?

By transforming payment cards into digital products, companies can leverage personalized rewards and incentives to increase consumer propensity to purchase. This can be achieved by generating virtual cards at the right time, with the right look, and offering dynamic rewards based on consumer behavior.

Q: What are the potential impacts of the recent settlement between MasterCard and Visa on interchange and payment card steering?

The settlement could lead to a reduction in interchange fees, saving the industry billions of dollars. Additionally, it enables merchants to steer customers towards different payment cards, allowing for more personalized offers and engagement at the point of sale.

Summary & Key Takeaways

• Fintech is transitioning from basic digitalization to becoming fully fintech-enabled, with AI playing a significant role in disrupting areas such as credit modeling and fraud detection within financial services.

• The shift towards embedded finance is seen as an opportunity for every company to become a fintech company, leveraging their existing distribution and consumer base.

• The digitalization of payment cards as engagement products has the potential to surpass platforms like Facebook and Google in addictive consumer usage, opening up new opportunities for personalized rewards and increased gross merchandise values.