4 Fintech Trends to Watch at Money20/20 Europe

Hand interacting with digital holographic graph representing fintech trends for 2024

Money20/20 has been a cornerstone event defining trends in the fintech industry since its inception in 2012. As a hub for innovation, this event gathers industry leaders from giants like J.P. Morgan and Deutsche Bank to fintech disruptors like Stripe and Airwallex. 

The show floor fosters groundbreaking ideas and partnerships that propel the global financial ecosystem forward.

Today, Money20/20 Europe provides unparalleled networking opportunities and insights into trends in fintech and technological advancements redefining the industry. Before our Entrapeer team heads to the event, we wanted to give you a breakdown of the key indicators shaping fintech trends 2024. In this article, you will learn:

  • The evolving landscape of open banking and its impact on the financial industry.
  • The rise of embedded finance and its benefits for businesses.
  • Key trends in payments and personalized banking experiences driven by fintech innovation

Let’s explore these transformative trends and understand how they are reshaping the future of finance.


1. How Open Banking is Redefining Financial Services in Europe


Open banking first emerged as a noteworthy fintech trend around 2016, driven by regulatory initiatives such as the European Union’s Revised Payment Services Directive (PSD2) and similar efforts in other regions aimed at increasing competition and innovation in the financial services sector.

Since then, open banking has transformed traditional banking by enabling secure data sharing between banks and third-party providers.

PSD2 requires banks to open their payment services and customer data to external entities. Scandinavia, in particular, has led the way with progressive regulatory frameworks and a strong emphasis on consumer protection.


How Banks and Fintechs Can Thrive in Open Banking


For banks and fintechs, open banking presents both challenges and opportunities. 

Banks must maintain high-security standards to protect sensitive data, which often involves complying with stringent regulations such as:

  • GDPR in Europe
  • SOC 2 in the US

Fintech companies that aspire to collaborate with banks must meet these security thresholds, a process that requires significant investment in time and resources.

Despite these challenges, the collaboration between banks and fintechs can lead to innovative solutions that both enhance customer experiences and operational efficiencies. For example, fintechs offer agile and specialized software that can be integrated into banks’ existing product stacks. These solutions provide new capabilities that internal teams may struggle to develop independently.


The Potential Impacts of Open Banking Integration


The integration of open banking has the potential to impact the financial industry significantly. By leveraging vast amounts of customer data, open banking facilitates the creation of personalized financial products and services. This can lead to more tailored and efficient banking experiences, ultimately driving customer satisfaction and loyalty.

Yet banks and fintechs must overcome several onboarding hurdles to fully realize these benefits, specifically:

  • Stringent Compliance Checks: Ensuring all parties meet regulatory requirements such as GDPR and PSD2.
  • Complex Integration Processes: Seamlessly integrating new technologies with existing systems.
  • Data Security Concerns: Protecting sensitive customer information from potential breaches.
  • Customer Education: Informing customers about the benefits and safety of Open Banking to build trust.

By addressing these challenges and ensuring strategic alignment, banks and fintechs can create partnerships that not only comply with regulatory requirements but also drive innovation and growth in the digital banking sector.



2. How Embedded Finance is Changing the Game


Embedded finance is rapidly transforming the fintech landscape. It refers to the integration of financial services directly into non-financial platforms, enabling companies to offer the following:

  • Banking
  • Payments
  • Lending
  • Insurance services seamlessly within their existing products

This trend is revolutionizing the customer experience by providing financial services where and when users need them most. The best part is that customers can access these services without switching between different applications or websites.


The Advantages of Embedded Finance for Diverse Industries


For businesses outside the traditional financial sector, embedded finance offers numerous advantages. By integrating financial services into their platforms, companies can:

  • Enhance user experience
  • Increase customer engagement
  • Create new revenue streams

For instance, retail companies can offer instant credit at checkout, while ride-sharing apps can provide in-app insurance for drivers. These embedded financial services not only add value to the customer journey but also drive higher conversion rates and customer loyalty.



Enhancing Customer Journeys with Embedded Finance


The growth of embedded finance is fueled by advancements in cloud computing and the expansion of open APIs. Through these advancements, it has become more accessible and more cost-effective for companies to implement fintech services. 

According to industry predictions, the embedded finance market could reach a value of $7 trillion globally over the next decade. This growth is expected to span various industries, including the following:

  • Healthcare
  • Real estate
  • Employment

Embedded finance integrates financial services into customer journeys, enhancing convenience and personalization. For example, a travel booking site can offer travel insurance and financing options at the point of purchase, making the process smoother and more appealing to customers. 

Ecosystem banking—where financial services are embedded into broader digital ecosystems—is a key driver of this trend. It not only meets customer expectations for seamless financial interactions but also helps companies build deeper, more meaningful relationships with their customers.


3. Exploring Trends in Fintech Payments and What Lies Ahead


The payments sector is also undergoing rapid transformation driven by technological advancements and changing consumer expectations. Real-time payments, instant settlements, and the rise of digital wallets are at the forefront of this evolution.

Let’s take a closer look at these key trends in fintech payment solutions.


Real-Time Payments and Instant Settlements


Real-time payments are becoming increasingly popular, providing immediate transfer of funds between bank accounts. This technology enhances cash flow management for businesses and offers convenience for consumers. It aids in reducing the waiting times associated with traditional banking processes as well.

Instant settlements further streamline transactions, ensuring that payments are processed and finalized quickly, which is crucial for both merchants and customers.

The Growth of Digital Wallets

Digital wallets are also gaining traction, offering a secure and convenient way to store and use payment information. These wallets enable users to make payments using their smartphones or other digital devices. Some examples of digital wallets are: 

  • Apple Pay
  • Google Wallet
  • Samsung Pay

Each service provides a seamless payment experience by integrating with various platforms and services, reducing the need for physical cards and cash.



Alternative Payment Methods

The future of payments will see a rise in alternative payment methods like cryptocurrencies and blockchain technology. Cryptocurrencies offer a decentralized and secure way of making transactions, while blockchain technology ensures transparency and reduces fraud. Although still in the early stages of mainstream adoption, these technologies hold significant potential for transforming the payments landscape.


Cross-Border Payments

Efficiency improvements in cross-border payments are another important trend. Traditional cross-border transactions are often slow and costly, but new technologies aim to make these payments faster, cheaper, and more transparent. 

Solutions like Ripple’s blockchain-based payment system are already making strides in this area, promising to revolutionize international money transfers.



By embracing these trends in the fintech industry, businesses can enhance their payment processes, improve customer satisfaction, and stay ahead in the competitive financial landscape.


4. The Power of Personalization in Customer-Centric Fintech


In the fintech industry, personalization and customer-centricity are becoming paramount. The concept of “A Customer Universe of One” underscores the importance of tailoring financial products and services to meet individual needs. This trend is driven by advancements in data analytics and artificial intelligence (AI), which enable companies to offer highly personalized experiences.


Personalization Through Data and AI


Leveraging data and AI allows fintech companies to gain deep insights into customer behavior and preferences. By analyzing the following companies can offer tailored financial products and services.

  • Transaction history
  • Spending patterns
  • Other data points

For example, AI-powered tools can recommend personalized investment strategies, savings plans, or loan options based on an individual’s financial goals and risk tolerance. This level of personalization not only enhances customer satisfaction but also fosters loyalty and trust.


Benefits of AI Chatbots


AI chatbots play a significant role in enhancing customer interactions. These intelligent bots provide instant around-the-clock customer service such as:

  • Handling inquiries
  • Processing transactions
  • Offering financial advice. 

They can address common issues swiftly, allowing human customer service representatives to focus on more complex problems. By providing quick and efficient service, AI chatbots improve operational efficiencies and enhance the overall customer experience.

Entrapeer’s Insights on AI for Personalized Banking

According to our research, AI-driven personalization helps financial institutions understand and anticipate customer needs, leading to better product recommendations and improved customer satisfaction. This approach not only meets the demand for individualized services but also supports strategic goals by aligning offerings with customer preferences.

By focusing on personalization and leveraging advanced technologies, fintech companies can create a customer-centric approach that meets the evolving expectations of today’s consumers. This strategy not only improves the user experience but also drives competitive advantage in the financial industry.


The Future of Fintech Trends: Key Takeaways for 2024


Evolving consumer demands and technological advancements are driving profound change in the financial landscape. As we brace for Money20/20 (and conference season on the whole) we’re closely watching these 5 fintech trends:

  • The evolving landscape of open banking: Enhances collaboration and data sharing between banks and fintechs, driving innovation and customer convenience.
  • The rise of embedded finance: Integrates financial services into non-financial platforms, offering seamless and personalized experiences for users.
  • The future of payments: Embraces real-time payments, digital wallets, and alternative methods like cryptocurrencies to streamline transactions and enhance user experience.
  • The focus on personalized customer experiences: Utilizes AI and data analytics to provide tailored financial products and services, creating a highly personalized and customer-centric approach.

By staying informed about these trends in the fintech industry, attendees of Money 20/20 Europe can leverage these insights to drive innovation and customer satisfaction within their organizations. 

As the fintech landscape continues to evolve, embracing these trends will be crucial for staying competitive and meeting the dynamic needs of consumers.