In October, Money20/20 brought together some of the biggest names in finance to share insights on the future of the industry.
This year’s event included sessions from executives at JP Morgan, PayPal, Chime, Meta, Walmart, Sephora and other key industry players. Director Rohit Chopra from the Consumer Financial Protection Bureau (CFPB) also joined the conversation during the conference’s Sunday Night Live keynote to talk about the agency’s new open banking and data-sharing rule.
While AI dominated conversations, fraud prevention also emerged as a key concern, threading its way through many of the sessions.
Have companies made much progress with AI in 2024?
Although there has been a lot of talk about AI over the past year, how much progress have companies actually made in leveraging the technology in 2024? It’s a question I found myself asking a lot at Money20/20, and the answer isn’t as straightforward as it seems.
Organizations are still navigating how to make AI work most effectively for their needs. For many users and consumers, AI remains a black box, which has made building trust around the technology a challenge for many organizations — both externally with customers and internally with employees.
AI is still in its infancy, so It’s understandable that organizations are carefully considering how to integrate the technology into their internal processes and product roadmaps. Across the board, Money 20/20 speakers agreed on its potential. But successful long-term implementation starts with small steps, robust data and a human touch to guide the way – sentiments that were echoed throughout this year’s event.
It seems to me that companies have made slower progress on AI in 2024 than expected. This cautious pace is not just acceptable — it shows a deliberate, thoughtful approach as we navigate this transformative technology.
Fraud prevention will take the spotlight in 2025
Fraud prevention is one of the top – if not the top issue – for the financial industry heading into 2025.
According to panelists, existing technology, like automation, is effective at catching the majority of fraud. However, the small fraction of incredibly sophisticated fraud is a growing concern for lawmakers and companies alike.
The U.S. has a complex web of government agencies fighting fraud. Tackling fraud from multiple angles is beneficial. However, this fragmented approach leads to regulatory complexities and gaps, with no central authority to guide efforts. As other countries strengthen their fraud detection, some experts worry the U.S. could become a more attractive target for scammers seeking to exploit the fragmented regulatory system.
AI advancements will undoubtedly play a key role in fighting fraud, but AI will also accelerate the evolution of fraudulent tactics. Panelists agreed that education and partnership could be our most powerful weapon against scams. If organizations like Meta and JP Morgan band together to educate consumers about what to watch for, and if consumers can catch scams early and stop them in their tracks, it will become much harder for fraudsters to succeed.
Money 20/20 provided valuable insights into the current state and future trajectory of the financial industry. As we head into 2025, it’s clear that AI and fraud prevention — this year’s central themes — will play a major role in shaping the fintech landscape.
For more fintech insights and key takeaways from Money20/20 2024, get in touch with our team today!
