On May 15th, we were thrilled to be part of the collaborative spirit at the 2024 Bankers Summit in Toronto. Over 500 banks, credit unions, and fintech companies united to discuss how next-gen financial institutions can partner with and utilize fintech to accelerate their innovation. The event featured several expert panels, fostering a sense of shared learning and growth, covering BaaS, AI, Risk, Fraud, and InsurTech topics, and this article shares our top take-aways of the day.

AI in Banking

AI is not just revolutionizing banking, it’s inspiring the entire sector. Financial services are well known for cautiously implementing innovative technologies and it’s following a similar strategy with AI. By starting with small projects to evaluate both short- and long-term benefits, banks are applying AI to solve bigger specific business problems and decrease customer 360 journey friction. The key is to ensure that AI initiatives deliver tangible business value and transform them from flashy “cool“ tools to game-changers. Despite the gradual approach, and possibly because of it, the widespread interest in applying AI to simplify and solve real problems is a testament to its potential.

The State of Business Banking

Business banking is undergoing significant changes, focusing on providing small and medium-sized businesses (SMBs) and large corporations with more time and unified data to concentrate on their core competencies rather than have staff and teams carry out repetitive, time-consuming administrative tasks. The primary goal is to deliver integrated data for accounting, payroll, and payment processing applications across business units that offer seamless one-stop shopping that prioritizes speed, simplicity, and convenience. With lofty expectations from businesses, service providers must innovate to remain competitive, particularly in Canada, where regulatory advancements lag countries like the USA and Australia. Effective customer service, leveraging data to handle inquiries efficiently, and apply the right data to better reflect and enhance the status and value of the customer journey are essential strategies.

The value of open banking is becoming more apparent as it allows businesses to transition seamlessly between providers and gain more control over their data. Despite Canada’s relatively slow progress in this area, the push for innovation and improved regulatory frameworks is critical. Partnerships between banks and fintech companies are vital to fend off global competition and create exceptional customer experiences. Notably, fintech firms are more inclusive, serving a significantly more diverse customer base than traditional banks, highlighting the importance of diversity and inclusion in the evolving landscape of business banking.

Transition and Technological Integration

The banking industry is on the verge of transitioning $90 billion in Banker’s Acceptances, aiming for greater efficiency through better internal collaboration. Despite wanting to expand into new markets and reduce administrative burdens for institutional clients, current systems are not fully equipped to support these goals. Innovation, driven by technology partnerships and best practices across business units rather than in-house development, is crucial for competitiveness. Banks must look at and apply tech advancements and strategies from other industries to gain a competitive edge and offer comprehensive online services. Enhancing customer relationships through essential products like mortgages continues to be a high priority.

AI and Fraud Detection

AI-generated fake IDs can easily bypass existing ID fraud detection technologies. The future of ID fraud prevention lies in Multi-Factor Authentication and collaboration between financial services, government, and telecoms. Deep fake videos and easily accessible face swap tools complicate the landscape, require the application of advanced AI tools to detect AI-based fraud. Financial institutions must leverage AI to counter these advanced fraud techniques.

Anti-Money Laundering and Fraud

As fraud becomes more sophisticated, banks need robust systems to detect and prevent it. Future fraud prevention will likely involve extensive use of biometric data, such as eye scans and fingerprints, with many customers willing to consent to provide this data for enhanced simplicity and security. Real-time data and signals are essential for effective fraud investigation, which relies heavily on manual searches. AI can streamline these processes, making investigations more efficient. Collaboration with government agencies for data sharing is critical to effectively combat financial crimes.

The 2024 Bankers Summit was an informative and thought-inspiring day. While the banking sector is cautious about adopting AI, its potential to enhance efficiency, customer service, and fraud prevention is immense. Embracing innovation and technology partnerships continue to be key to future success.

What’s Next?

The 2024 Bankers Summit highlighted the transformative potential of AI and technological integration in the financial sector. As banks and fintech companies continue to innovate and collaborate, they are achieving operational efficiency and paving the way to deliver more inclusive, secure, and customer-centric financial services. Discussions and thought leadership sessions underscored the importance of adopting a forward-thinking approach, embracing regulatory changes, and applying innovative technologies to stay competitive. As we look to the future, it’s clear that the fusion of traditional banking practices with innovative fintech companies and solutions will define the next era of financial services, ensuring resilience and growth in an ever-evolving landscape.

Want to know how Riva helps financial organizations? Check our case studies or get in touch.

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