Changes Made for Changing Times: Key Insights from Money20/20 USA 2024

Built to challenge and change a stagnant banking system, fintech is an industry that has always been on the cusp of the next big thing. At this year’s Money20/20 USA, discussions made it clear that  the fintech industry may be facing one of its biggest shifts to date. Here’s a rundown of some of the changes on the horizon: 

Speeding Up the Stock Exchange

Lynn Martin, president of the New York Stock Exchange (NYSE), shared that the NYSE has expanded its trading hours to 22 hours a day, 5 days a week. This change, according to Martin, was made in an effort to accommodate an increasingly global and digital market. 

This move will allow the market to manage risk globally and be more accessible. And, unsurprisingly, it’s all about the data.  When asked what she sees in the future of financial markets, Martin expressed it would all hinge on getting and using data. Her prediction was that data-powered technology would bring clarity and transparency to “opaque markets”. 

She said that, as of now, the financial markets rely on so many important processes that are slow and inefficient, but she sees that changing. And, if processes improve, it could have huge impacts across the financial industry. 

Embracing Artificial Intelligence

A major theme throughout the week, and highlighted by Martin as a technology primed to change the industry, was AI and machine learning. Martin said, “AI is driven by data” and “AI adds transparency to data.” However,  according to Sarah Friar, CFO of OpenAI, the time is now, not in the future.

“AI is happening right now. It is not experimental. It matters to you right now,” said Friar. 

Friar spoke of various use cases where AI is already impacting today's world — and expressed that the adoption of AI will likely grow exponentially. But, that growth is not without challenges. Friar noted that the demands of growing learning models from one level to the next has a corresponding exponential demand on resources and cost. Frair expressed that AI is beholden to the same laws of scale as any new and growing technology. Each tier is harder and more expensive to reach than the last, but she believes that the functionality of AI will grow correspondingly. 

Moving Forward on Open Banking

The Consumer Financial Protection Bureau’s Director Rohit Chopra took the main stage to discuss the final Section 1033 rule on consumer financial data rights .

The final 1033 rule is the product of more than a decade of working towards consumers gaining control of their data. Chopra shared that the progress and competition is designed to empower consumers with choice and options when it comes to finding financial providers.

He went so far as to say “every financial institution should feel like their customer can fire them.” He explained that this should be the resting state for financial services — to constantly be utilizing data to improve their offerings for customers. 

Open Banking is here. And, Director Chopra and MX are in agreement that those who adopt early will drive better outcomes.

Looking Head

Even with all of the bright spots on the horizon, many speakers expressed their commitment to the work yet to be done. Friar said, “The future is here, but it is unevenly distributed.” 

As we advance in the worlds of technology and financial services, we need to do more to make those advancements available and beneficial to everyone. Fintech needs to bring the best of both worlds to positively change everyone's lives.