Conference Learnings from Industry Experts
FinText 2023 brought several “Ah-Ha!” moments that reshaped our perspective on financial technology trends and the future of the industry. From envisioning the potential of text payments, to the game-changing role of AI, and exploring the dynamics of bill payments and regulatory updates, our conference was filled with eye-opening insights that you won’t want to miss.
Ah-Ha! Moments from FinText Day 1:
- “We shouldn’t make our customers think about how they move money, but have them think about what that experience is.” – Peter Davey, Venture Partner at Alloy Labs
- Leveraging AI and automation can help reduce compliance risk with pre-programmed compliance language and messaging.
- 54% of consumers reported late bill payments in the last year, with forgetfulness being a contributing factor in 75% of those cases. This points to a unique opportunity for text communications and account management.
The Future of Payments
In ‘The Future of Payments’ keynote, Peter Davey highlighted the shift from traditional, time-consuming payment methods to streamlined, instantaneous transactions. Davey specifically focused on the importance of simplifying the payment process for customers, removing the burden of intricate technical aspects. The initial vision behind instant payments was to enhance the overall customer experience, reduce operational costs, and democratize payment accessibility through the adoption of standards and APIs. The themes of integration and connection were central to Davey’s message, placing the customer at the core of financial processes. This approach calls for the incorporation of embedded tools and solutions to streamline payment reconciliation, ultimately creating a more seamless and user-friendly payment ecosystem.
How AI is Changing the Game
Subra Viswanathan and Ranjan Dharmaraja
Subra Viswanathan and Ranjan Dharmaraja delved into the potential of AI in collections, emphasizing its role in driving efficiencies. They made a clear distinction between automation and AI, underscoring that organizations can leverage AI to streamline processes, moving towards a more automated workflow. They also highlighted the importance of compliance when discussing AI’s applications in debt collection, omni-channel strategies, and various industries.
The State of Bill Pay
David Albertazzi and Mike Rogers
In our keynote session, “The State of Bill Pay,” David Albertazzi, Director, Retail Banking & Payments at Datos Insights, and Michael Rogers, Chief Business Development Officer at Solutions by Text, presented eye-opening findings from our exclusive market research report. Our research reveals that bill payments make up more than 30% of total consumer spending in the United States, making them a substantial part of our financial lives. In fact, Americans make a whopping 16.8 billion annual bill payments, with over 10 billion of them now happening through digital channels. Simply put, Americans pay a LOT of bills.
Our research also pointed to generational differences in payment methods with Gen Z and Millennials preferring debit cards, while Baby Boomers lean toward credit cards and checks for bill payments. A key takeaway from our report is that consumers want to pay their bills. In fact, 88% of consumers employ a “structured strategy” to pay bills, whether it’s aligning payments with payday, paying upon bill delivery, adhering to due dates, or consolidating bills on a specific date. However, regardless of strategy or planning, 54% of consumers attested to making late payments last year. The late payments were primarily attributed to insufficient funds, forgetfulness, or lack of awareness. These insights shed light on the importance of bill payment methods and the diverse strategies people use to manage them.
Check out insights from Day 1 Part 2!