The panelists also discussed potential opportunities in AI-powered automation and niche areas like tax and accounting. They anticipated a wave of consolidation in the financial services space, with strategic M&A and private equity-fueled moves expected to dominate. Despite the challenges posed by high interest rates, the panelists expressed optimism about the future of fintech, noting that some of the best companies are often started during times of crisis and uncertainty.
Key takeaways:
- AI was a major focus at FinovateEurope, with discussions on its practical use in financial services and its potential for future innovation.
- AI expert Nina Schick highlighted three points in her keynote: AI is often misunderstood as either 'dangerous' or 'dumb'; the concept of 'Artificial Capable Intelligence' (ACI) will drive innovation before we reach 'Artificial General Intelligence' (AGI); and AI is a meta-technology that can be applied to a wide range of experiences and challenges.
- The panel discussion on fintech investment revealed optimism for funding in 2024, with interest rates playing a key role in determining investment appetite and driving valuations. There was also a prediction of active M&A activity in the financial services space.
- Despite the challenges posed by high interest rates, there are potential opportunities in niche areas like tax and accounting, insurtechs, and wealth management, particularly for companies that can help young families navigate major financial challenges.