Watch leading players in the financial services industry describe key trends transforming the payments landscape at Appetite for Disruption 2019, an IrishAdvantage fintech event in Dublin:
Innovations in payments are creating disruption in financial services
Philip Konopik, Ireland Country Manager Visa, says that disruption stems from fragmentation:
“Disruption is really coming from fragmentation, so consumers have more services choice, and more services available to them at a lower price. That’s what’s really evolving and disrupting the industry.”
Sean Faughnan, CEO Banking Startup, believes that the banking industry traditionally treated payments as a transaction that was isolated from the world of the consumer:
“What payments are doing now is that they are locating those transactions in the context of someone’s wider consumer life. So it’s not just going to be about payments, it’s going to be about messaging, it’s going to be about videos, and it’s going to be about buying things and banking should be at the heart of all of that.”
Eddie Dillon, Founder and CEO CreditLogic, says that elements of financial services are being disintermediated, not least payments: “Anywhere there is friction or there is any level of adverse customer experience, there is going to be a level of innovation.”
Thomas Layman, President/CEO Global Vision Group, believes that the traditional players are learning from this competition:
“The disruptors are helping them to become more innovative, so we see a mutual kind of benefit from both directions as a result of financial innovation and technology,” he says.
What societal impacts are driving payment innovation?
In many ways, changes in the banking industry are reflective of changes in society.
Laura Clifford, Senior Executive Manager FinTech Fusion at ADAPT Centre, explains, “I think it’s the millennials and the generation that we’re seeing come with all their tech savvy minds. Everything they do is on a smartphone or a watch or a tablet – there’s a generation who are completely embracing it.”
Ollie Walsh, CEO PiPiT Global, believes that financial inclusion is at the heart of change: “Societal impacts are financial inclusion. 42% of the world doesn’t have a bank account, 50 million adults in the EU don’t have a bank account, and 10 million in the US. They are big numbers and they’re excluded.”
As for the future, Faughnan of Banking Startup, says that one major change is that payments are moving to person-to-person (P2P):
“The minute you start doing P2P transactions you have no idea where it’s going to go, but you know change is on the way.”
“I think Ireland is a really key disruptor in the market because we’re actually a first stepping stone for people interested in entering Europe. In the second place, we are a really good ecosystem in the sense that you can actually see a cluster, particularly of payments businesses in the Irish market that are enabling perhaps US players to enter into Europe.”