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Exclusive insights from Money 20/20: The future of FinServ is global, multi-party, and real-time – and this poses massive challenges for risk management, compliance, identity, and fraud prevention. 

As payments and fraud prevention become more complex, artificial intelligence will play a key role in creating a frictionless, safe experience for consumers.

As financial products and services are increasingly embedded and delivered through new platforms, there’s more opportunity than ever for bad actors to exploit the system and commit fraud. But as the conversations and trends from Money 20/20 Europe made clear, artificial intelligence will be a key tool for FinServs to fight back and evolve their processes.

“Particularly with real-time and global payments, AML compliance and risk and fraud monitoring have a long way to go to deliver true frictionless experiences, while minimizing false positive and false negative flags,” according to an Insight Partners rep who attended the event. “This is one place where AI can be a true game-changer.”  

In addition to the Google example above, Insights Distilled has previously reported on how innovative tech firms are trying to use artificial intelligence to flag hidden patterns in payments data and automate continuous know-your-customer monitoring. The best fintech providers will be those that make orchestration easy across various data layers, Insight adds. 

The team also identified several other key narratives that emerged from Money 20/20 Europe: 

Disrupting B2B payments remains an untapped opportunity. Business-to-business transactions have been stuck in the past, making it a segment ripe for modernization. The fintechs that succeed will be those that take on specific geographies industries, or size cross-sections and solve the largest pain point within that niche.  

AI will change everything eventually. Financial institutions are not standing still in the wave of GenAI, but regulatory and fairness risks remain – as well as questions on who should hold the burden of customer education. Service and support, product recommendation and delivery, risk scoring, payments optimization (particularly within FX and capital markets), and transaction processing and reconciliation are ripe for disruption, but timelines for production-level rollouts remain uncertain.