The fintech landscape is rapidly evolving, driven by innovations that streamline operations, enhance user experiences and transform the economic fabric. To learn what this new reality could look like, leaders at Deluxe shared their insights on the trends that are shaping the future of fintech.

What’s next in fintech?

In an early 2024 interview, Deluxe leaders Barry C. McCarthy, President and CEO, Kristopher Lazzaretti, SVP, President of Data, and Yogaraj (Yogs) Jayaprakasam, Chief Technology and Digital Officer, were asked to share trends they saw emerging in the fintech space. Here’s what had to say:

Kris Lazzaretti, Barry C. McCarthy, and Yogaraj (Yogs) Jayaprakasam
Kristopher Lazzaretti (SVP, President, Data), Barry C. McCarthy (President and CEO) and Yogaraj Jayaprakasam (SVP, Chief Technology and Digital Officer) in an early 2024 interview.

1. Embedded and autonomous payments

“Payments underlie absolutely everything that runs the economy,” shared McCarthy. “You can't have a business if you can't get paid.”

The average consumer makes at least two digital transactions a day, so it’s not surprising that the future of payments is predicted to involve streamlining or even fully automating these interactions.

“Over time, payments are just going to be part of the landscape,” he continued. “There will be different identifiers; [for example,] today we use cards, we use mobile phones, people have tried thumbprints, eyes… but the point is that payments will be available everywhere.”

And McCarthy is not alone in his speculation. According to Forbes, autonomous financial ecosystems could become reality within the next ten years.

“[Payments] will be embedded in the very nature of what we do, almost like the way electricity is everywhere in our lives today,” explained McCarthy. He went on to note that Deluxe is already operating on the forefront of this trend, with the goal of making transactions more efficient to prepare for the shift to what will inevitably be a cashless society. “Deluxe is on that pathway, embedding payments in software and other solutions that help businesses succeed,” McCarthy concluded.

2. Faster automation and streamlined integration

Similarly to embedded payments, automation scripts and integrated solutions are expected to continue growing in popularity and use, with these trending technologies being pivotal in enhancing operational efficiency.

“[Automation] is another big area of focus for Deluxe,” said McCarthy. “For example, today we're processing about $3 trillion of inbound payment volume from people paying with all different types of payments. We're already applying automation to that with high-speed equipment to manage those transactions, digitize and scan payments, and get them inserted for processing. But there's more to come.”

There's a demand for integrated solutions where someone could log in and see all of what's happening... in one place, and that's exactly what our new products are doing.

  • Barry C. McCarthy

    President and CEO , Deluxe

Automation and integration often go hand in hand, especially for back-office operations. According to a 2022 survey conducted by McKinsey, 35 percent of small and medium-size enterprises in the U.S. considered using fintechs for integrating solutions, among other benefits.

“Many accounts receivable and accounts payable managers have to log into up to a dozen different sites to find out where they are today,” noted McCarthy. Not only do these inefficiencies require immense manpower, but they make it difficult for large organizations to pivot when needed. “There's a demand for integrated solutions where someone could log in and see all of what's happening in their payments, receivables and payables in one place,” he continued, “and that's exactly what our new products are doing.”

By developing technology that can communicate across multiple touchpoints, Deluxe solutions help to eliminate inefficiencies. The goal is to provide integrated solutions that offer comprehensive visibility into payments, receivables and payables. Products like Receivables 360+ and DPX+ exemplify this vision, providing end-to-end management and an intuitive user interface.

3. AI and machine learning

No list of emerging trends in fintech would be complete without the mention of artificial intelligence (AI). Leaders at Deluxe are very aware of the opportunities – and risks – associated with this new technology and are utilizing it with cautious optimism.

“The landscape of AI is still very much evolving,” Kristopher Lazzaretti said, noting that AI holds promise for content generation, refinement, and predictive insights, but that responsible frameworks are essential.

“As we think about AI as a technology, our excitement is always firmly grounded in responsibility,” Lazzaretti asserted. “Responsible AI frameworks are at the foundation of everything we do, thinking always about fairness, inclusivity and explainability, [while] respecting consumer preferences throughout.”

As we think about AI as a technology, our excitement is always firmly grounded in responsibility.

  • Kristopher Lazzaretti

    SVP, President, Data , Deluxe

AI-driven tools can analyze vast amounts of data quickly and accurately, offering predictive insights and automating complex tasks. The adoption of AI in fintech is expected to continue growing, albeit with a focus on ethical and responsible use.

“Generative AI is the talk of the town,” shared Yogaraj Jayaprakasam. “We are all figuring out where to apply [AI] to truly create value for our customers and communities.”

Part of this value involves finding ways AI can enhance existing systems, rather than acting just as a standalone feature, Jayaprakasam noted. “We are focused heavily on creating offerings – whether it is in our data-driven marketing area where we continue to add more machine learning-driven personalized targets, or our accounts receivables and payable platforms – they are all taking advantage of what we can do in [the AI] space.”

4. Actionable data aggregation

Lazzaretti also envisions a future where data-driven decision making is faster and more precise.

“We think that the future of direct response marketing and data-driven marketing is one that is powered by increasingly diverse, deep sets of data,” shared Lazzaretti. “To make that data useful, it's important to invest in the technologies that draw that data together and turn it into actionable insights.”

This approach allows Deluxe to deliver personalized marketing to consumers at optimal times, meeting clients' needs in dynamic ways.

The future of fintech is bright

The world of fintech is rapidly evolving, resulting in a mixture of feelings both positive and negative. For businesses in this industry that are preparing for an unknown future, Jayaprakasam recommends weighing optimism against risk.

You’ve got to be optimistic when you look at the future of technology. There’s a lot of fear... about Gen AI... But the same can be said 20-40 years back when the internet and iPhone came about.

  • Yogaraj (Yogs) Jayaprakasam

    SVP, Chief Technology and Digital Officer , Deluxe

“You’ve got to be optimistic when you look at the future of technology,” he said. “There’s a lot of fear when people hear about Gen AI – how many jobs it is going to eliminate, whose job will no longer exist – all those things. But the same can be said 20-40 years back when the internet and iPhone came about.” The risks involved in the evolution of these technologies have been surpassed by the benefits, with businesses and individuals being able to achieve goals and complete tasks faster and more efficiently than what could ever be imagined

“That’s the power of technology, and I seriously believe it,” Jayaprakasam concluded.

Deluxe’s focus on emerging trends like embedded payments, automation, data aggregation and AI ensures that it remains at the cutting edge of fintech, delivering innovative solutions that help drive both the company’s and its clients’ success.

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