The Financial Services Industry is going through transformative change with FI's increasingly investigating Fintech startups and / or solutions to improve the overall efficiency of their existing IT systems, facilitate greater access to their products / services, and build out new avenues for revenue generation. It is commonly understood that in order to actively compete, understanding of emerging technologies - especially AI is paramount. However, what are the challenges in place when dealing with Open Innovation in a cutting edge area like AI?
The panel spoke to a multitude of concerns that helped comprehend challenges that new Fintech's may face when breaking into market. These challenges were inclusive of:
- Launching a product at a time when there did not seem to a dire need. As such, overall profits and traction in market suffer. A lot of bets made within AI, have been just that, concentrated bets. What was initially viewed as 'not needed' is at the forefront of innovation today
- Gaining customer trust and adoption to new products. A lot of customers are reliant on incumbents as they are sure to provide the basic services they require. Convincing these customers that a Fintech solution is better, faster, and cheaper is in fact the most difficult. It's a cultural shift.
- Realizing that technology is a means to an end and the not end solution. It is easy to find a new innovative solution and go to market with a new Fintech, however, understanding what problem is to be solved for, the dynamics of the market gap, and how the solution will scale is the tough part
- Catering to a demographic (speaking mainly to Millenials and Gen Z) that have really high expectations of digital interfaces as a result of growing up with technology platforms like Facebook, Instagram, and Snapchat. They expect the same level of ease when interacting with Financial Services through a digital platform
- Dealing with Incumbents launching their own platforms by hiring in-house data scientists, engineers, web-developers after investigating Fintech solutions in market. This becomes problematic for smaller scale solutions that have not established themselves in market as of yet.
Moderated by distinguished entrepreneur Emilio B. Imbriglio, President & CEO of Raymond Chatbot Grant Thorton, with notable names in industry, inclusive of: Kelly Peeler (CEO & Cofounder NextGenVest), Sebastien Fiaux (CEO SFJ Technologies), David Souaid (President & Cofounder Evolocity), Kathryn Petralia (President & Co-founder Kabbage Inc.), Christopher Oster (CEO Clark), and Anis Uddin Sheikh (baseH Technologies Private Limited)
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