Money20/20 USA 2024 – Part 1

Jordan Wright, Co-Founder and CEO, Atomic

Jordan Wright, Co-Founder and CEO of Atomic, discussed the company’s mission to advance financial mobility through innovative bill and subscription management tools. Wright emphasized that Atomic’s primary goal is to empower consumers by helping them find savings opportunities and optimize spending. By allowing consumers to monitor and manage recurring expenses like subscriptions, Atomic gives them greater control over their financial lives, ultimately enabling them to save more and plan for the future.

A significant theme of the discussion was *account primacy*, which Wright described as ensuring that a consumer’s primary financial activities—such as receiving pay checks and managing bill payments—are conducted through a specific account. This is a priority for banks, as it often determines where consumers focus their financial interactions. Wright believes that, by managing payments and subscriptions within a primary financial account, institutions can better serve as the central hub for a consumer’s financial activities, offering a streamlined experience.

Subscription management is a core focus for Atomic, addressing the “creeping” issue of unnoticed charges. Wright referenced a Wall Street Journal article where someone cancelled subscriptions and saved enough for a car, underlining how small, recurring expenses can add up. Atomic’s tools are designed to identify recurring expenses, notify users, and help them manage or cancel subscriptions as needed. Wright argued that traditional Personal Financial Management (PFM) tools lack engagement because they typically only display financial data without actionable solutions. Atomic’s vision is to bridge this gap by facilitating actions directly within its app, helping consumers address financial inefficiencies.

During Money20/20, Wright was set to participate in a panel titled “Fintech Truths and a Lie,” which was intended to be a candid discussion without phones, to allow for open sharing. Wright shared his view that embedded PFM tools, in their current form, are insufficient but expressed optimism for the future, citing potential enhancements that could make these tools genuinely useful.

Looking forward, Atomic’s priority is expanding its bill management offerings. Wright highlighted Atomic’s unique position in this space, suggesting that many attendees at Money20/20 likely have Atomic’s SDK on their phones, underscoring the company’s growing influence in financial technology. His vision is for Atomic to be recognized for delivering tangible financial benefits to users by helping them save substantial amounts over time.

Jane Barratt, Chief Advocacy Officer, MX

Jane Barratt, Chief Advocacy Officer at MX, shared insights on data-sharing regulations, AI, and MX’s partnerships in a recent interview. Barratt began with an overview of MX’s role in financial data services, focusing on helping banks, credit unions, and fintech’s connect consumers to their financial data through tools like white-label mobile apps. The Consumer Financial Protection Bureau’s Rule 1033, which requires financial institutions to enable secure, private data sharing, was a major talking point. Barrett noted that the regulation intends to increase consumer control over data and foster a healthier, competitive environment, while also ensuring compliance standards for financial institutions and intermediaries like MX.

On the topic of AI, Barratt offered a pragmatic perspective. While AI promises personalization and tailored financial products, current applications remain largely utilitarian, such as automating compliance tasks. She suggested that the industry is yet to realize AI’s potential for deep personalization due to data constraints, emphasizing that robust data inputs are essential for AI to truly fulfil this promise. Although there is significant hype around AI, she questioned whether there are standout applications at present that offer meaningful, personalized benefits to consumers.

Looking at broader trends, Barratt expressed excitement about the evolving financial ecosystem, particularly in accommodating new income patterns. She pointed out that the traditional, fixed-cycle financial system does not reflect the reality for many people today who rely on multiple income streams or seasonal work. Barrett sees potential for financial tools to better support individuals with irregular incomes, helping them manage finances in a way that reflects their specific needs.

Barratt also highlighted MX’s recent partnerships, including collaborations with Atomic and Dwolla. The partnership with Atomic aims to integrate income data with spending and billing cycles, enhancing MX’s capabilities for personalized financial management by helping users get more value from their income. Through Dwolla, MX is advancing in the payment space, particularly with pay-by-bank solutions, aligning with the broader open banking trend and increasing connectivity options for customers.

Shri Santhanam, Executive Vice President and General Manager of Software Platforms and AI, Experian

Shri Santhanam, Executive Vice President and General Manager of Software Platforms and AI at Experian, shared insights into the company’s new Generative AI-powered tool, the “Experian Assistant,” at Money20/20. This tool is designed to simplify access to Experian’s complex data, providing clients with an on-demand, expert-level assistant available at all times. The Experian Assistant answers over 2,000 customer queries monthly, offering support on data usage, regulatory compliance, and responsible data handling, effectively streamlining processes that traditionally require expert consultation.

Santhanam highlighted the tangible benefits of this AI tool, noting that it significantly accelerates tasks like model-building for underwriting, reducing development time by 75%, and speeding up data analytics by over 50%. The Experian Assistant currently focuses on credit and consumer data, with plans to integrate fraud data soon, enabling even more comprehensive support.

Financial inclusion remains a core focus for Experian’s clients, who aim to create more inclusive and accessible products using Experian’s data. Santhanam pointed out that tools like the Experian Assistant could help lenders reach underserved communities, including the 28 million Americans who remain “credit invisible” under traditional scoring methods. The Experian Assistant, therefore, supports clients in making data-driven, inclusive lending decisions that benefit both financial institutions and consumers.

Tom Bianco, General Manager, Newline by Fifth Third Bank

Tom Bianco, General Manager of Newline by Fifth Third Bank, shared insights into Newline’s role within Fifth Third Bank and the evolving landscape of embedded finance. Newline serves as the bank’s embedded payments division, offering open API infrastructure that enables clients to access a range of core payment services like ACH, wire transfers, real-time payments, and account solutions. Fifth Third, headquartered in Cincinnati, Ohio, is a major regional bank with over $200 billion in assets, well-known for its significant involvement in payments and its legacy of innovation, including the launch of Worldpay, a major player in payment processing.

Bianco discussed his upcoming appearance on the MoneyPot podcast with Trustly, where they’ll explore the latest trends in embedded payments, particularly in consumer-facing technology and regulatory shifts. Highlighting the partnership with Trustly, Bianco expressed excitement about the potential that collaborative platforms bring to embedded finance, driving innovation and creating enhanced consumer experiences. He noted that Newline and Trustly’s collaboration embodies the synergy that can be achieved when two tech-driven organizations work together to push the boundaries of embedded finance.

In terms of future innovations, Bianco is particularly intrigued by the potential impacts of open banking regulations in the U.S. He anticipates that enabling consumers to control and share their financial information securely will open doors to new account-to-account commerce models, enhancing digital experiences and reshaping the way payments occur. Bianco is also optimistic about the possibilities of more streamlined account-to-account payments and believes that consumer education around data control will play a vital role in the evolution of commerce. Additionally, he highlighted the importance of safety and security in this space, emphasizing that empowering consumers to manage their data use will strengthen trust in emerging payment methods and reinforce the value of these innovative models.

On the client side, Newline collaborates with established names in various domains. These include acquiring partnerships with companies like Worldpay and Payroc, issuing partnerships with ADP, Corpay, and Brex, and processing relationships with firms like Trustly, Stripe, and AngelList. Bianco explained that Newline targets forward-thinking clients who are leaders in their fields, aiming to drive paradigm shifts in their respective markets.

Reflecting on the impact of open banking, Bianco looks forward to how enhanced consumer control over financial data will transform commerce in the U.S., fostering safer and more innovative experiences in payments and financial services.

Anthony Burton, SVP and Head of Open Banking, Truist

Anthony Burton, SVP and Head of Open Banking at Truist, discussed the bank’s approach to open banking, AI, and embedded finance during the interview. Burton shared that Truist focuses on three pillars of open banking: “connected banking,” or data out; “data in,” which brings external customer data into the Truist ecosystem; and “embedded banking,” which extends core Truist capabilities into new distribution channels. He highlighted the recent Dodd-Frank Act regulations, noting that they reinforce open banking as a legitimate, essential channel for financial services and that this regulatory validation supports its growing adoption across fintech.

Burton also touched on AI’s role in enhancing open banking, emphasizing that AI’s effectiveness depends heavily on comprehensive data. With richer data from open banking, AI can better understand and serve customers, enabling Truist to offer more personalized and accurate financial insights. Burton shared that he personally utilized AI to analyse regulatory documents, exemplifying AI’s practical applications in finance.

Truist’s commitment to customer care is central to its personalization strategy. By combining Truist data with a broader financial profile through open banking, the bank aims to proactively support customers’ financial journeys. This means delivering not only customized product recommendations but also personalized service experiences to ensure that each client feels supported at every life stage.

In the area of embedded finance, Burton views this as an opportunity to deliver Truist’s services across both fintech and non-financial platforms, enhancing customer access to products where and when they need them. For example, Truist is exploring small business lending integration within various platforms, demonstrating the bank’s intention to meet customers within their preferred environments.

Burton concluded with his enthusiasm for Truist’s design-centred, client-focused approach, underscoring that the goal is to offer holistic, customer-centric experiences rather than isolated products. Open banking data will be instrumental in providing consistent support throughout each customer’s financial journey, from young adulthood to planning for college and beyond.