Fintech, Lending 2 min read

Experts predict the future of lending at Money20/20

Money20/20 brings together the brightest minds in fintech to share the insights and strategies shaping the lending industry's future.

This year, Taktile had the privilege of engaging with numerous experts, and the conversations were nothing short of enlightening. Here, we distill the essential lessons learned, offering a roadmap for lenders to win their markets in 2024.

To achieve market differentiation, core IP should be core focus 

This was a significant theme at Money20/20: Focus on building what truly sets your company apart while leveraging external solutions for everything else. To remain competitive, lenders – whether banks or fintechs – must double down on exceptional product development.

In an industry where the hyper-personalization of pricing and products for end customers is growing at a rapid pace, the core focus for lenders remains on building up internal and external data sources, experimenting on heuristics, and refining proprietary models.

We spoke to Sara de la Torre, Head of Financial Services at Dun & Bradstreet, who mentioned, “The hyper-personalization of financial solutions is a serious competitive differentiator in the business lending space. In the coming years, we predict a far more proactive insights-led market that seamlessly delivers a wider, ongoing spectrum of opportunities.”

This means an agile tech stack should be table-stakes 

Given this guiding ethos, the consensus among experts is clear: the traditional, resource-intensive approach to change in the finance industry is outdated.

In an insightful panel talk, Thea Loch, Head of Group Optimisation at Lloyds Banking Group, stressed that the way finance organizations have changed up until now is far too reliant on resources. This approach will no longer take them where they need to be, and it has not kept pace with the world around us.

This means agile technological infrastructure is no longer a differentiator; it's a necessity.

Organizations must invest in technology that enables rapid change and innovation so they can focus on what they do best: combining in-house expertise with proprietary data and models to provide exceptional offerings in their markets.

This investment is crucial for staying ahead in an industry where speed and adaptability can make the difference between leading and lagging.

“Getting speed and proprietary data right is super important. At Liberis, nailing these two things has helped us become one of the global market leaders,” mentions Maarten van der Putten, Director, Enterprise Sales & Partnerships at Liberis.

Industry leaders to embrace partnerships and external technology 

With this gear-shift in thinking, experts highlight how they expect to see more organizations embrace partnerships in their operational setup.

As Maarten van der Putten explains, “In the B2B lending world, I think we'll see way more partnerships popping up over the next couple of years. Companies will be buying tech instead of building it themselves to keep up.”

To get a founder’s take on this topic, we had a fireside chat with Ingmar Stupp, Co-Founder of Tilta, a European B2B payments infrastructure platform. Ingmar shares his thoughts on the build versus buy dilemma that lenders face:

Our key takeaway from Money20/20: As the financial landscape continues to evolve: agility, innovation, and a willingness to experiment will set the leading lenders apart. Embracing a culture of rapid adaptation and strategic partnerships will be essential for success in the ever-changing world of financial services.

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