Fintech Takes

S9 E6: Money20/20, 2024: BaaS and Open Banking and AI (Oh My!)

Nov 6, 2024

In a lively discussion, Jason Henrichs, CEO of Alloy Labs and co-host of the Breaking Banks podcast, shares insights from the recent Money20/20 event. He delves into the transformative role of bank-fintech partnerships and the newly finalized 1033 rule, which has sparked significant debate. The conversation also tackles the reality check on AI hype as the industry shifts focus to regulation and compliance. Jason emphasizes the need for clear standards to empower smaller fintechs amidst evolving dynamics in open banking and the broader fintech landscape.

28:30

Episode guests

Jason Henrichs

AI Summary

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Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Open banking emerged as a pivotal theme, particularly following the CFPB's finalization of the 1033 rule, sparking extensive industry discussions.

The podcast highlighted concerns about AI being overhyped, advocating for a more cautious and realistic approach to its practical applications.

Deep dives

Emerging Themes at Money 2020

The recent Money 2020 event showcased a shift back towards content-rich discussions, contrasting earlier years that emphasized sales. Participants engaged in meaningful conversations about crucial topics such as bank-fintech partnerships, banking as a service, and the evolving landscape of open banking, especially in light of recent regulatory updates. The new rules surrounding open banking were particularly noteworthy, generating a dramatic backdrop of discussion with many industry players eager to understand their implications for collaborative efforts. This pivot highlights a mature approach to navigating the complexities of the fintech space, moving toward substantive discussions rather than transactional ones.

Intro

2min

Transforming Fintech Conversations at Money 2020

7min

Navigating Fintech Regulations

5min

Open Banking Dynamics: The Power Play of Big Banks

8min

The Call for Rationalization in Fintech

3min

Welcome to another special Fintech Takes episode.

I’m Alex Johnson, just back from four intense days at Money20/20 in Las Vegas, and here to unpack it all with me is my friend Jason Henrichs, CEO of Alloy Labs and co-host of the Breaking Banks podcast.

In this crossover, we’re breaking down the major topics of Money20/20, 2024 edition. This year, it was all about major topics: bank-fintech partnerships, banking as a service, open banking (1033, anyone?), and, of course, AI.

First up, open banking stole the show. Just last week, the CFPB finalized the 1033 rule, igniting some serious debates. I even interviewed Director of the CFPB, Rohit Chopra, on stage, where he tackled the ongoing lawsuit from big banks trying to block the Personal Financial Data Rights Rule (AKA open banking 👋).

Meanwhile, the conversations around bank-fintech partnerships, third-party risk management, and BaaS were less dramatic and more…solutions-oriented, circling around setting standards and ensuring that smaller fintech companies have access to bank partnerships.

As for AI? Even OpenAI admitted that AI might be overhyped heading into 2025, and the industry is ready for real talk on its utility.

Innovation may headline Money20/20, but this year’s main act? Regulators. Gone are the days when crypto and disruption headlined; in 2024, it’s all about regulatory stakes grounding the industry in today’s…reality—fancy that.

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Breaking Banks podcast: https://podcasts.apple.com/us/podcast/breaking-banks/id641357669