The third day of Finovate Fall 2017 entered into unchartered territory because, well, there’s never been a third day of Finovate.
In past iterations of the conference, the two days were filled with live vendor demonstrations that highlighted what was on the horizon. In 2017, over the first two days, 76 fintech companies demoed their products.
This year, the conference added an additional two days of keynote speakers, breakout sessions, and thought leadership to put the previous days’ demonstrations into context. The agenda covered topics that ranged from working with millennials to the OCC’s fintech charter.
Here are three takeaways from the third day of Finovate.
No. 1: The Platformication Of Banking
Early in the day, Ron Shevlin, head of research for Cornerstone Advisors, spoke as part of a panel of fintech analysts tasked with presenting key ideas for the future.
He believes that the bank-fintech partnership — as appealing as it sounds and as zeitgeisty as it is — is an unlikely future. Says Shevlin, small banks don’t have the money, large banks can approximate these services in-house, and what makes us think that fintechs have the skills to partner?
“You want partnerships?” he asked, channeling his best Col. Nathan Jessup. “You can’t handle partnerships!”
Rather, he sees a new business model forming: the platformication of banking. This model, a plug and play method of service, “enables the connection of providers and consumers,” Shevlin says.
In this model, vendors that operate as platform service providers will emerge to play host to product and service offerings. Early entrants into this space have already appeared, as well: companies such as Avoke, Constellation, Fidor Solutions, FI.SPAN, and Temenos.
Think of it like Amazon for banking — One platform where consumers will go to choose or opt in to different products and services with providers competing for attention.
No. 2: Creating Foundations For Financial Literacy
Younger generations live in a world where information on anything is available within just a few clicks, including personal finance.
“They believe they can learn later in life. They don’t have money now so they don’t think they have to be concerned,” says Ederick Lokpez, director of engagement strategy at US Bank in an afternoon breakout session.
If that’s true, when do consumers find it important to start learning about their finances?