TreaSolution is proud to announce that Corcentric will be a Thought-Leadership Sponsor of the 2020 U.S. Fintech Symposium. Corcentric will be demonstrating their industry thought-leadership by delivering a sessions at this year's conference.  Further, Corcentric representatives will be exhibiting at the event so attendees can learn more about their Procurement, AP Automation & Billing Solution services.

About Corcentric
Corcentric helps companies leverage smarter services and technology in three major business areas to reduce operating costs, improve cash flow, and unlock the hidden value within their enterprise: Procurement, Accounts Payable Automation and Billing Solutions.  

While Plaid may not be on the average consumer’s radar, Visa has surely taken notice of the
San Francisco-based start-up. The credit card giant recently announced their acquisition of the
newest unicorn to grace Silicon Valley for a whopping $5.3 billion. The announcement comes
only a year after Plaid’s last private valuation at double the price tag.

Visa’s proactive jump headfirst into Fintech and Plaid’s meteoric rise to $5.3 billion are a
great indication of the upcoming explosion of new opportunities in this industry. In coming
years, our economy could very well turn further to open banking, giving consumers more
freedom to own and exchange their financial data directly as they see fit. Now with Plaid under
its belt, Visa will have its own opportunity to leverage an established global network and
continue fostering the exponential growth that Plaid has already been experiencing. Visa could
very well become the powerhouse that ushers in a new era of consumer finance.

Think simpler transactions for consumers. Think easy investments. Think cryptocurrency—all
from the applications on your phone. As Fintech continues to evolve, the way that consumers
interact with their own finances could very well change the way that they interact with peers
and other businesses.

Fintech is at the beginning of a new technological revolution, and Visa has positioned itself to
be a force to be reckoned with as they use their global influence to capitalize on this
opportunity.

What are your thoughts?  Comment below and/or share on social media to join the discussion.

Over the past 10 years we have seen a tremendous amount of innovation in the finance, banking and fintech industries. From new payments options to advancements in artificial intelligence.   

Yet, finance does not have a monopoly on "innovation." There has been a tremendous amount of technical innovations in all sectors of the economy.  As you will see many of my predictions are reliant upon the convergence of new and advanced technologies.  It's this accelerating convergence of finance and technology (fintech) that I feel will ultimately define a new "finance" for people, companies and governments. 

What might the next 10 years have in store? Listed below are my top 10 prognostications as to how the finance industry will change over the next 10 years.  

The convergence of two technologies, 1.) Genome sequencing and analysis and 2.) very accurate life event statistical analysis, will lead to the development of a new health / finance field: Personalized BioFinance. Personalized BioFinance will be a new way to analyze the health, lifestyle and activities of you and everyone in your immediate family and benchmark this information against specific life event statistical analysis. The result will be a completely customized "future plan" that is customized to your life. Personalized BioFinance will leverage each person's future plan to automatically and consistently implemented an optimal asset allocation strategy. If it is determined that you may be at risk of a certain health issues in a decade or so, then the Personalized BioFinance plan automatically adjusts your asset allocation accordingly. Personalized BioFinance will also take into consideration potential lifestyle changes such as parents that may need some assistance at the same time your children are going to start college. One of the main benefits of a Personalized BioFinance plan is that it will be created and updated automatically by machine learning and artificial intelligence. Further, Personalized BioFinance capital allocations will be regularly adjusted based upon you and your families' updated health and lifestyle information.

A payment is simply moving value from Point A to Point B. It doesn't need to be more complicated than that. Today there are numerous ways to make a payment: Check, ACH, Wire Transfer, Bitcoin, Cash, etc... Within the next 10 years I predict that there will be a consolidation of payment “rails.” Once an organization(s) is able to create a payment methodology that contains these four specific elements, then I feel that most of the other payment methods will slowly stop being useful. The four critical elements for payment method domination will be:

1. Real-Time Everything (Payments & Reporting)
2. Open API & Digitally Agnostic (Apps, ERP Systems, Websites, Etc.)
3. Low-Cost or Free
4. All Counterparty Acceptance (Consumers, Business, Governments)

Once an organization is able to create a way to move value that incorporates all of the above characteristics, the need and use of legacy payment rails will rapidly decline... All except one... Cash. So, there will be a clear bifurcation of payment methods: Real-Time Electronic Payment and Cash.  

The two main reasons why banking will become, at least domestically, location agnostic will be due to the consolidation of payment methods (much more simplified) and the utilization of secure augmented and/or virtual reality to conduct all “in-person” banking activities. Once virtual reality becomes mainstream, then banks and customers will have no need for branches. All meetings, documents, transaction can be conducted virtually. Banks will be able to save a tremendous amount of money by not opening, maintaining and staffing physical branches. In fact, banks may invest more money into enabling bankers to make more onsite visits with business customers. Why not let the banker go to the customer? The question that most banks in the U.S. Will have to answer is: How does my bank compete if location doesn't matter?

The advent of self driving cars will usher in conveniences that are hard to fully imagine. One such convenience will be the delivery / depositing of cash via an Autonomous ATM. (This idea has already been patented in 2016 by Capital One Financial Corporation.) An Autonomous ATM is a self-driving armored truck with an ATM interface located on each side. Since banks will be primarily focused on electronic services and virtual banking, autonomous ATMs will enable banks to provide a modern digital convenience for ancient payment methodology. This is how the new service will work... Users will use a bank app to schedule an Autonomous ATM vehicle which will arrive at a location and time of their choosing. Once the Autonomous ATM arrives, the customer will be notified and will walk outside to the vehicle to receive or deposit their cash.

How does a bank compete if location doesn't matter?

​I think the answer will be industry specialization. Most small to mid-size banks, unfortunately, will discover this concept way too late. Domestically, once banking is completely digitized and location becomes moot many banks will be in a race to the bottom pertaining to bank pricing of commoditized services. This is not a winning strategy. The smart banks will define and leverage an industry niche. By transforming into industry specific specialty banks, the banks will be able to develop the tools and, most importantly, subject-matter experts that will be the catalyst for future growth. No longer limited by location, industry specific banks will thrive by adding new industry specific customers from throughout the globe.

The bad news is that if your job in finance can be distilled into a flow-chart, then within ten years that function will be automated. Companies are starting to use a technology called Robotic Process Automation to automate many non-strategic finance functions. (and other organizational tactical functions). RPA systems can type, copy, paste, save, delete, email, analyze and more 24 hours a day without a break, vacation or sick day. It even works on weekends. One more important point... companies can license an RPA “robot” for less than half of the salary of an entry level corporate finance analyst. Change is coming. Therefore, if you haven't yet done so, aggressively pursue strategic opportunities when they become available to you.

If tactical jobs are automated, how will finance professionals compete? Strategically. Really! RPA systems are not strategic robots. It can not formulate a strategy. It can not build business relationships. It can not understand someone's motivations. Therefore, I envision two corporate finance jobs that will be great demand over the next 10 years:

1. Corporate Finance Strategists
2. Financial Process Engineers

The corporate finance strategists is a generic title for finance professionals that work strategically. Think of people like the CFO or Treasurer. The Financial Process Engineers will be people who understand tactical corporate finance functions and are able to program the RPA system to complete the work.
​
Just as RPAs will be automating the tactical processes, Financial Artificial Intelligence (FAI) will be automatically analyzing real time data in order to deliver robust financial scenario analysis. The FAI will review, automatically and in real-time, competitor data, market data, economic data, political risk data and more! The output of the FAI will be various scenarios that a Corporate Finance Strategist will need to analyze in order to make an ultimate decision. Therefore, it will be critical for future finance leaders to understand the FAI system methodology, strengths and weakness of the data used, and the overall corporate strategy.

There are many benefits of blockchain technology: Improved transparency, immutability, efficiency and security. Therefore, I believe that within the next 10 years most domestic (and maybe international) banks will be leveraging a singular, private blockchain for payment services. This is already happening at a smaller, non-blockchain, level via the Zelle network. Once blockchain Proof of Concept (PoC) projects are validated and cost justified, banks will be compelled to consolidate payment information in a single ledger that is easily maintained, distributed and auditable. Bank's utilization of blockchain technology will not be limited to payments. Banks will also use private blockchains for securities, smart contracts, legal records, FX transactions, cross-border trade, debt, letters of credit, etc....

Within 10 years all aspects of finance will be affected by technology. So much so, that all undergraduate students who study finance will also need to know how to code. (There are some forward thinking finance departments that already require coding for finance students.) Further evidence that finance will turn into Fintech is that large technology companies are now offering financial services. This trend will not stop.... it will only increase in the coming years. New and innovative technologies will evolve hand-in-hand with the field of finance. That is why I believe, “A rising (technological) tide lifts all (financial) boats.”

It will be (is) critical that finance professionals stay continuously informed about the latest developments pertaining to finance, banking and technology. Since most tactical finance work will ultimately be automated, how does one stay ahead of the strategic curve? Continuing Education.

Attending conference (like the U.S. Fintech Symposium) will enable professionals to stay ahead of the fintech curve while simultaneously networking with other finance professionals. Ultimately, the skills that will enable finance leaders of tomorrow to excel will be rooted in education, strategy, networking and communication.

As 2020 starts I'm optimistic about the the finance, banking and fintech industries. I think that people should be clear eyed and realize that technological change is going to happen at an ever increasing rate. Accept that. In fact, I would recommend that you lead it. We should all strive to be the leader that initiates strategic and technological change.

The fintech wave is forming and building speed.... Successful financial professionals will read the wave and ride it. Other's won't. I hope this article provides you with some insight into how finance will change over time. Will some or all of these prognostications come to fruition? I think so but there's no way to know for sure right now. What is important is that while you were reading this post you were thinking about the future. What are your thoughts about my predictions? Do you have any fintech related predictions?  If so, please comment below.  I, and many others, would love to hear your thoughts.

Finally, did you find this post interesting?  If so, can you please share it on social media?  Thanks!

Daniel J. Carmody, CTP is the Executive Director of TreaSolution and a faculty member at Northwestern University.  Dan regularly consults with large organizations pertaining to their fintech and treasury management strategies. Further, Dan produces the annual U.S. Fintech Symposium which will be held in Chicago on September 14th & 15th, 2020.  At Northwestern University, Dan teaches a course pertaining to treasury and liquidity management. As a public speaker, Dan is regularly asked to participate in meeting and conferences to share his thoughts about fintech, finance, treasury and career development.  

Catapult Chicago believes that community is the seed to success. They empower the best founders and companies to help each other scale. Catapult is the only non-profit community for startups with business traction.

Since 2012, Catapult Chicago has produced some awesome statistics:

• 86% of member companies are operational or acquired
• Host 336 Educational Programs
• Member companies raised $309M in funding
• and much more!

TreaSolution is happy to announce that PureFacts Financial Solutions will be the exclusive Great Conversations Sponsor of the 2019 U.S. Fintech Symposium.  PureFacts is sponsoring all four general session panel discussions. Additionally, PureFacts will be demonstrating their industry thought-leadership by delivering a 50-minute session at this year's conference. If you would like to learn more about PureFacts and their solutions, PureFacts representatives be exhibiting at the U.S. Fintech Symposium.

About PureFacts Financial Solutions

PureFacts is a leader in total wealth management solutions for the financial services industry in Canada, USA, and the Caribbean. They enable firms to grow revenue, reduce costs, manage risk, and delight their clients. They use AI, big data, and the latest technologies, along with our industry expertise to help our clients succeed.

TreaSolution is proud to announce that Pegasus Knowledge Solutions will be an exhibiting sponsor for the 2019 U.S. Fintech Symposium.  Pegasus Knowledge Solutions representatives will be available during the event to answer questions about their Advanced Analytics products and consulting services.

About Pegasus Knowledge Solutions

Founded in 1997, Pegasus Knowledge Solutions, Inc. is an independent, advanced analytic software and services organization, that partners with the industry leading providers to help customers create value from their data, bringing a range of talents, including data integration and preparation, big data environments, data mining, predictive analytics, machine learning and text mining, as well as dashboarding and visualization. PKSI is focused on quality, speed of execution, value and above all, customer satisfaction. 

The U.S. Fintech Symposium was recently listed by Fintechtris as one of the "Top U.S. Fintech Conferences of 2019." Specifically, Fintechtris states the following about the U.S. Fintech Symposium:

The U.S. Fintech Symposium "provides an educational agenda that places an emphasis on practical FinTech solutions. One of the U.S. FinTech Symposium's goals is to foster multidisciplinary conversations so attendees can gain a greater understanding of FinTech capabilities and challenges."

Thank you Fintechtris for featuring the U.S. Fintech Symposium!  

TreaSolution is proud to announce that InterGen Data will be a Thought-Leadership sponsor for the 2019 U.S. Fintech Symposium.  InterGen Data will be demonstrating their industry thought-leadership by delivering a sessions at this year's conference.  Furthermore, InterGen Data representatives will be exhibiting at the event so attendees can learn more about their unique products and services.

About InterGen Data

InterGen Data is a data services provider of cloud-based artificial intelligence "A.I." software solutions for the banking, financial services, and insurance industries.  InterGen Data believes that when individuals are provided with the right tools and data, they will be able to use them to manage, overcome, and navigate their financial future more effectively.  InterGen Data assists their clients in spending less time on administrative tasks and more time on revenue generating opportunities.