FTT Fintech 2024: Day 2 highlights – Blockchain, crypto, fraud, bias-free digital identity, KYC, and more

In an era of rapid technological advancement, finance and banking sectors are transforming at unprecedented speed. At the FTT Fintech Festival 2024, top minds gathered to discuss emerging trends, tackle challenges, and share insights that are reshaping financial services. Day 2 of the event covered everything, from KYC and digital identity to blockchain, quantum computing, and bias in technology. Each panel offered a window into how financial institutions are navigating complex landscapes and what lies ahead.

Here’s a look at some of the topics covered and the future trajectory they signal for the industry.

AI’s impact on financial accessibility

At The Future of Financial Services panel, moderated by Madush Gupta, Policy Lead for Innovation & Technology at the City of London, industry leaders discussed how AI is driving accessibility and efficiency in financial services. Andrea Reynolds, CEO of Swoop, shared how her platform leverages AI to help SMEs access financing by analysing their financial data to identify cost savings. This, she noted, enables Swoop to improve clients’ creditworthiness, addressing one of SMEs’ core challenges—access to affordable finance.

Adam Tarpey, Head of Product at Metro Bank, described how AI tools at Metro support both staff and customer interactions. He explained that AI-driven data extraction helps employees answer customer questions more quickly and accurately, while in commercial lending, AI streamlines complex processes, enhancing the bank’s service delivery.

Scott Wilson, CEO of Covecta, emphasised that his company’s AI-powered platform supports frontline banking teams by automating routine tasks. This, he argued, allows human agents to spend more time engaging with clients directly. Wilson noted that Covecta’s approach is about augmenting rather than replacing human work, ensuring AI strengthens rather than disrupts client relationships.

Combating sophisticated fraud tactics

Led by Helene Panzarino from the London Institute of Banking & Finance, a panel about social engineering scams highlighted the alarming rise of targeted scams like “pig butchering” and sextortion, as well as their devastating impact on victims. The panellists, including Darren Ford of Bupa, Mark Taylor of CEX.IO, Ana Maria Anic of WinRate, and Vinita Ramtri, stressed that these scams exploit trust, targeting individuals during vulnerable moments.

Mark Taylor emphasised that social engineering manipulates human psychology, using data shared online to exploit vulnerabilities. Ana Maria Anic pointed out that scammers target both the elderly and the young, using familiar platforms like Facebook and Telegram to build relationships over time, ultimately leading to financial exploitation.

The panellists agreed that tackling social engineering fraud requires a multi-pronged approach, including increased regulation, collaboration across industries, and ongoing consumer education. Vinita Ramtri highlighted the need for tech companies and financial institutions to improve detection and intervention strategies, while Anic stressed the importance of proactive internal measures to educate employees and enhance data-sharing capabilities to thwart fraud.

The evolution of blockchain and Crypto: From hype to reality

The use of blockchain technology has shifted from the revolutionary aspirations of the early years to a more grounded evolution. As Elise Soucie, Executive Director at Global Digital Finance, moderated the session, panellists delved into how blockchain’s path forward is now heavily influenced by regulatory frameworks, increased institutional adoption, and the rise of central bank digital currencies (CBDCs).

Joy Adams, COO of Digital Assets at Deutsche Bank, emphasised that much of the focus today is on building robust infrastructure, ensuring security, and addressing “POC fatigue” in blockchain’s early testing phases. Guillaume Chatain of Societe Generale – FORGE highlighted the importance of asset tokenisation, citing partnerships like Deutsche Bank’s €100 million bond with KfW, while Sendi Young (Ripple) pointed to the rapid growth of stablecoins and their potential in cross-border payments as notable areas for growth.

The panellists acknowledged the progress made, but they underscored that blockchain’s evolution remains gradual. Regulatory frameworks such as the EU’s MiCA regulation are beginning to set standards, a crucial step for long-term adoption and innovation in the space. With regulatory support and technological maturation, blockchain has the potential to redefine financial services but will require continued, cautious advancement.

Quantum leap: Digital identity in the post-classical era

Quantum computing stands poised to revolutionise digital identity verification and protection, promising unparalleled processing power. James Monaghan, Co-Founder of MISSION, led a discussion that addressed both the promise and the challenges of quantum in this context. Panellists Azy Shojaeian from Pockit, Steve Suarez of Mitsubishi Corporation, and Santosh Pandit from the Bank of England explored how quantum computing’s capabilities to decrypt data rapidly may threaten current encryption standards.

Suarez emphasised the dual nature of quantum, which simultaneously poses risks and offers opportunities. For instance, as encryption methods evolve, quantum technologies can offer enhanced data protection through quantum cryptography. Santosh Pandit shared the regulator’s perspective, underscoring the urgency of quantum-safe encryption and the need for standardised practices to manage quantum’s risks. In a poignant demonstration, Monaghan asked the audience to imagine the anxiety of their phone passwords being cracked in seconds by a quantum computer, a future that may not be too far off.

The conclusion was clear: financial institutions and governments must invest in quantum-safe encryption to secure digital identities in the quantum era. While much work remains, panellists agreed that proactive adoption of quantum technologies could redefine security and data privacy across the financial sector.

Battling bias: The quest for fair digital identity

As digital identity verification systems become ingrained in daily life, ensuring fairness and inclusivity is paramount. Danielle Dodoo, Digital Transformation Consultant, moderated a session focused on mitigating bias within digital identity. Panellists Becks Brindley of NatWest, Russ Cohn from IDVerse, and Hannah Saunders from Face Equality International shared insights into the many ways bias can infiltrate identity systems and the strategies to combat it.

Bias can manifest in different forms—from facial recognition technologies that struggle to accurately identify diverse faces to systems that inadvertently marginalise people based on physical features or disabilities. Brindley advocated for designing systems with edge cases in mind, emphasising the importance of including underrepresented communities in testing phases. Cohn shared IDVerse’s efforts in developing inclusive algorithms, focusing on creating AI-driven identity verification that minimises cultural and geographic biases.

To safeguard against bias, the panel recommended ongoing testing, inclusive data sets, and regulatory frameworks. Saunders underscored the potential of digital identity solutions to serve marginalised communities, provided they are designed thoughtfully and inclusively. The discussion emphasised the importance of ethical AI, which, if implemented well, could bring more people into the financial system equitably.

KYC: Predicting the next 5 years and how to future-proof

With new technologies and an evolving regulatory landscape, KYC (Know Your Customer) and AML (Anti-Money Laundering) protocols are facing unique challenges. Alia Cooper from HSBC moderated a discussion with Sadeque Ahmed, Mark Haine (OpenID Foundation), and Zahra Gill on how KYC processes can be fortified to handle future threats and opportunities.

One key focus was on dynamic KYC—a concept of real-time KYC that enables financial institutions to update customer data continuously. Ahmed stressed the need for a balanced, risk-based approach, warning that blanket real-time KYC could increase noise and dilute efforts on higher-risk clients. Haine emphasised the role of data sharing across financial institutions to foster a more comprehensive view of customer risk, while Gill spoke to the cultural shift required in KYC practices, from tick-box exercises to dynamic, real-time risk assessment.

The panel also considered the impact of AI in KYC, noting that while AI offers potential for automating data-heavy tasks, it is not a one-size-fits-all solution. Ahmed explained that AI could streamline information discovery, helping teams focus on high-risk cases, though human oversight remains essential. In a future marked by quantum computing and evolving AML threats, KYC protocols must be adaptable, leveraging both AI and inter-organisational data sharing to stay ahead.

Embracing innovation while guarding against risks

The FTT Fintech Festival 2024 made clear that the future of finance is one of both great promise and complexity. Blockchain, quantum computing, digital identity, and AI are all paving the way for more secure, efficient, and inclusive financial systems. However, each of these technologies also presents unique risks, from regulatory challenges to ethical concerns, making caution and collaboration essential.

Looking ahead, financial institutions must adopt flexible, data-driven approaches and work with regulators and industry peers to build resilient frameworks. By doing so, the finance sector can harness the transformative power of technology responsibly, ensuring a future where innovation benefits everyone.

Don’t miss the highlights from Day 1

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