FinovateEurope 2023, the annual European fintech conference held in London, showcased a number of emerging trends and themes in the fintech industry.
Below, we’ll look at some of the key takeaways and themes that emerged from the event.
ESG: A Major Focus
One of the major themes at FinovateEurope 2023 was the maturation of the ESG (Environmental, Social, Governance) movement in fintech and financial services. A number of companies showcased solutions that make it easier for banks and FIs to leverage technology to track their – and their customers’ – carbon footprint. Storied Data, Topicus/Fyndoo, and OpenFinance were among the companies that demonstrated how their technologies can provide granular insights into ways to minimize environmental impact.
During a fireside chat, Morgan Stanley’s Sanghamitra Karra emphasized the importance of connecting the “S” or “social” component of ESG with the “E” or “environmental” component. She reminded attendees that those who live in the most economically and socially underserved conditions are often the most vulnerable to the challenges of climate change.
Governance has also become an increasingly important issue for fintech and financial services organizations, as demonstrated by the Silicon Valley Bank (SVB) crisis. Critics who tried to blame SVB’s woes on an inappropriately intense focus on diversity, equity, and inclusion were misguided. Instead, the incident highlighted the need for organizations to have a Chief Risk Officer in place.
Crypto in the Cold
The number of demoing companies boasting their cryptocurrency credentials at FinovateEurope 2023 was low, indicating that crypto is still out in the cold.
Digital assets like Bitcoin and Ethereum will have to take a backseat while those innovating with the underlying blockchain technology search for better use cases.
Steven Van Belleghem, a keynote speaker at the event, warned against solutions in search of a problem and advised those innovating in the cryptocurrency/blockchain space to focus on real-world challenges.
CX as the Killer App
Another theme that emerged at FinovateEurope 2023 was the importance of focusing on the customer. Solutions offered by financial institutions to ESG concerns must be right-sized and focused on customer needs.
Making interfaces more intuitive, seamless, and with greater interconnectivity and interoperability will help improve the customer experience. Low- and no-code building blocks can enable innovators with more modest technical resources to be as creative as larger, better-resourced firms.
Fintech 2023: Don’t Call it a Comeback
Despite the crypto crash and subsequent crypto ice age, there was a sense that fintech may be entering a slowdown period.
However, this was not evident at FinovateEurope 2023, where hundreds of fintech and financial services professionals gathered to network and talk shop.
Chris Skinner, one of the keynote speakers, reminded attendees that great things often emerge from the rubble of dashed dreams.
Final Thoughts
FinovateEurope 2023 showcased a number of exciting trends and themes in the fintech industry.
From the maturation of ESG to the importance of focusing on the customer, the event provided valuable insights into the future of fintech.
While crypto may be out in the cold, fintech is far from entering a slowdown period.
With a focus on innovation and customer needs, the future looks bright for the industry.
