Last week (26-28 June 2017), Europe’s largest and most reputable fintech/payments event was held in Copenhagen, Denmark. With more than 70 sessions and workshops, over 4000 industry professionals from all over the world assembled to do business, scout for new technologies and deliberate on the rapidly-changing landscape of payments and fintech.
Several key topics were addressed at Money 2020 Europe, including: B2B payments and finance, mobile payments and wallets, AI and algorithm-based innovation, EU regulations, e-commerce and processing, “traditional” biometrics and finally, behavioral biometrics.
This year, the following issues were some of the key topics that were placed in the limelight:
e-Payments: Towards a Cashless and Cardless Lifestyle?
One of the major developments that were discussed at Money 2020, was how new e-payment methods are making it easier for consumers to adjust to an emerging “cashless and cardless lifestyle”. Prominent executives from AliPay showed how this trend is changing the consumer market in China and how these payment platforms are reaching new socioeconomic strata, age groups and occupations. On the one hand, this new trend comes with the promise of creating faster payments and providing an improved customer experience. On the other hand, this trend can also create a surge in fraud-related losses, chargebacks and additional step-up authentication fees.
Artificial Intelligence (AI)
Another hot topic at Money 2020 Europe, was AI and its growing impact on the banking and financial landscape. Executives from Square, Google, Amazon and other global powerhouses predicted that new AI-based technologies like personalized banking bots, negotiating chatbots, automatic payment platforms and behavior-based financial services will enter the market very soon. Again, these new technologies have the potential of improving convenience and customer experience, but come with an increasing threat of account takeovers through malware, RAT and robotic attacks.
PSD2: A Game-Changer?
2018 is set to be a pivotal year for banking and financial services in the EU, with the implementation of the revised Payment Services Directive (PSD2). PSD2 was a recurring theme during Money 2020 and mentioned by several keynote speakers. With the revised directive, new regulations may affect the European marketplace and require several adjustments from financial institutions and payment companies. Hot topics surrounding PSD2 include: access to account (XS2A), strong customer authentication (SCA), liability, surcharges and a full ban on fees.
With PSD2 looming, the banking and fintech industries are acting hastily to understand how customer authentication will work, if it is possible on time and how a user experience without too much friction can be assured. Different on-device biometric alternatives were discussed, together with behavioral solutions.
The Future of Behavioral Biometrics
The interest and application of behavioral biometrics is on the rise, specifically in the context of authentication and fraud prevention. When examining key topics like fast e-payments, AI-based technologies and significant regulatory changes like PSD2, it becomes clear that behavioral biometrics can play a pivotal role in making the banking and payment markets much faster and safer, while maintaining a frictionless and positive customer experience.