Key Insights from Money 20/20: Open Banking and Payment Orchestration

Money 20/20 consistently serves as a bellwether for the financial services industry, reinforcing emerging trends while highlighting new opportunities. This year's event was no different.

Our team had the opportunity to meet with customers, partners and industry leaders worldwide to discuss the future of payments and how Dwolla's solution is revolutionizing how businesses move money. The conversations and innovations showcased at the conference pointed to four key areas transforming financial services: payment orchestration, financial institution and fintech partnerships, artificial intelligence and the evolution of digital currencies.

Here’s what we learned during this year’s conference.

Payment Orchestration Takes Center Stage

Payment orchestration was a dominant theme throughout Money 20/20, with businesses increasingly seeking unified solutions that streamline operations and reduce complexities. 

The market clearly shows that enterprises want more than just payment processing—they need comprehensive platforms that can handle verification, risk assessment and multiple payment methods to facilitate seamless transactions, simplify payment flows and enhance the customer experience. 

The data supports this evolution. Valued at 1.5 billion in 2023, the global payment orchestration platform market size is expected to reach $10.3 billion by 2033. This growth also reflects enterprises’ need to simplify payment operations while maintaining security and compliance standards.

Financial Institutions and Fintechs: The Power of Partnership

Another key theme at Money 20/20 was the acceleration of partnerships between traditional financial institutions and fintech companies. The synergy between traditional financial institutions (FIs) and fintech companies is reshaping the financial landscape. This powerful partnership allows FIs to leverage the innovative solutions and agility of fintechs, while fintechs gain access to established customer bases and regulatory frameworks.

To maximize the benefits of such collaborations, FIs and fintechs should consider:

Shared Vision:

• Align Goals: Clearly define shared objectives and ensure they are aligned with both organizations' strategic goals.
• Cultural Compatibility: Foster a culture of innovation and collaboration that bridges the gap between traditional and disruptive approaches.

Data-Driven Innovation:

• Secure Data Sharing: Establish robust data-sharing protocols to leverage valuable insights and drive personalized customer experiences.
• AI and Machine Learning: Collaborate on AI and ML projects to enhance risk assessment, fraud prevention, and customer service.

Risk Management and Compliance:

• Shared Responsibility: Clearly define roles and responsibilities for risk management and compliance.
• Regulatory Alignment: Work together to navigate complex regulatory environments and ensure compliance.

By embracing these strategies, FIs and fintechs can forge strong partnerships that drive innovation, enhance customer experiences, and secure a competitive edge in the evolving financial industry.

The AI Revolution in Financial Services

While AI may not always be front and center, it's quietly revolutionizing the financial services industry. At Money 20/20, AI was a dominant theme, sparking conversations about its potential and the need for responsible development.   

From the moment a payment is initiated to its final settlement, AI is hard at work. It's processing transactions in real-time, analyzing financial data for insights and automating routine tasks to streamline the payment experience. AI-powered tools are also enhancing security by identifying and preventing fraud, providing an added layer of protection for both businesses and consumers.   

Beyond payments, AI is transforming the broader financial services landscape. By leveraging machine learning, institutions can create sophisticated, predictive systems that not only improve security but also elevate the customer experience. Personalized recommendations, proactive customer service and streamlined processes are just a few examples of how AI is reshaping the industry.   

As AI continues to evolve, it's crucial to adopt a responsible approach to its development and deployment. By carefully integrating AI solutions into various aspects of the payment process, businesses can unlock new opportunities, optimize operations and deliver exceptional customer experiences without compromising security or trust.

Stablecoins and Digital Currency Innovation

While discussions about cryptocurrency have evolved in recent years, stablecoins have become a critical bridge between traditional finance and the crypto world. As a result, the conversation has shifted from speculation to practical applications, with an emphasis on understanding the ways these digital assets might integrate with traditional payment rails. 

At Money 20/20, discussions about stablecoins centered on their potential role in payment systems and their ability to offer a stable, lower cost and more efficient way to transact across borders. By minimizing price volatility and streamlining cross-border payments, stablecoins are unlocking new opportunities for businesses and individuals.

Growing at 17% year over year, the stablecoin market settled more than $10.8 trillion worth of transactions in 2023. These numbers indicate growing adoption rates among enterprises seeking to leverage blockchain technology for payment efficiency while maintaining stable value. For businesses, this means faster and more affordable international transactions, reduced exchange rate risk and access to a wider range of financial services.

What Do These Findings Mean for the Future of Payments?

Money 20/20 reinforced that the future of payments lies in orchestration, partnership and innovation. Businesses increasingly demand solutions that can:

• Simplify complex payment workflows
• Provide robust security and compliance
• Enable real-time operations
• Scale efficiently with business growth

The financial services industry is at a pivotal moment where technology, regulation and market demands converge to create new opportunities. Success will depend on providers' ability to deliver unified solutions that address these evolving needs while maintaining the highest standards of security and reliability. The trends showcased at Money 20/20 prove the industry is ready to meet these challenges head-on, with open banking and payment orchestration leading the way toward a more connected and efficient financial future.

Modern enterprises require flexible payment options that can adapt to market requirements. Forward-thinking payment solutions must seamlessly integrate with existing business infrastructure while anticipating future needs. By streamlining payment processes through intelligent automation and orchestration, companies can achieve unprecedented efficiency and control.

As we move forward at Dwolla, our focus remains on creating payment experiences that are not just faster and more efficient, but also more intelligent, innovative and secure.