Money20/20: Innovation, AI, and data management
A recap of the need-to-know themes from Money20/20’s annual gathering of FinTech experts.
In late October, the world’s top FinTech minds gathered once again for Money20/20 USA. In addition to timely discussions around the trade war and new product announcements, Financial Service’s biggest topics of innovation, AI and data management were prevalent. In this blog post, we’ll highlight the key takeaways brands need for 2020 and beyond.
The rise of innovation, machine learning, and AI
One theme that was explored at the conference was the rise of innovation, largely thanks to new AI products that allow financial brands to rely more on machine learning. It was also noted that machine learning is only as effective as the data set it has to pull from. Michael Goodman, VP of data & Analytics and technology advisory practice lead NTT DATA, explained that “it is critical for financial services companies to drive toward becoming more data-driven organisations, while also accelerating efforts to integrate AI and machine learning across the value chain. This will require organizations to develop a new approach to analytics, as use of advanced analytics historically has been concentrated in just a few organisations.”
In order for more organizations to leverage machine learning to improve customer experience, they must enhance their data management so it works off of a robust enough set of sources and data types that it accurately reflects the customer’s journey. Further, product and development teams need access to the full data set in one unified platform, as well as have the ability to integrate with AI tools and platforms. More and more companies are using customer data platforms (CDPs) for leveraging machine learning more effectively. If you’re interested in digging in more, you can read up on how machine learning and AI can help enhance product performance here.
More critical than ever—data protection, security and data management
A related theme that was explored by key speakers at Money20/20 USA this year is the importance of data protection, security, regulation, and ownership. In addition to major speakers like Director of the Consumer Financial Protection Bureau Kathleen Kraninger and Chairman of the FDIC Jelena McWilliams, leaders from financial organizations spoke on the importance of respecting the consumer’s data. BBVA Chairman Carlos Torres Vila spoke during his talk about the rights of the consumer to their own data. “The data belongs to the data subject, not to the company who has collected the data. That data should only be used if that person knowingly consents to its use. And third, and often more forgotten, is that sharing that data with other companies, including competitors, should be mandatory if that person so decides.”
Managing consent is becoming more complicated with GDPR having already set regulations for EMEA and CCPA coming to the US in January. Without a CDP to unify, manage, and protect the customer’s data set it’s nearly impossible to manage a subject’s request across platforms and devices. If you are interested to learn more about how to manage compliance and consent with a CDP, you can read up on it here.
As we look to the future of FinTech, it’s clear coming out of this Money20/20 that outstanding customer experience, brought to life with AI working off a foundation of high-quality, well-managed data is more important than ever. Financial institutions can achieve this today with a foundational customer data platform that is compliant with all regulatory requirements. You can read more about mParticle for Financial Services here.