Earlier this week, fintech companies arrived in Times Square to showcase their latest innovations and product developments. Finance leaders are a highly prioritized target audience for developers who seek to impact the office of the CFO. According to one payments SaaS sales representative, the finance chief has the power to “make any sales rep’s day” by taking the opportunity to examine a technology’s potential offerings.

While some companies used the opportunity for brand makeovers, there was no shortage of fintechs looking to help CFOs solve the current and future challenges of the finance department. 

Below are five takeaways from FinovateFall for finance executives.

1. M&A Interest is Real, but Buyers Want Results

Fintech partners from the largest banks were scouting the space looking for their next M&A opportunity. “We’re looking for the next Stripe,” one fintech partnership representative from a top three global bank told CFO. When asked about what would jump out at them in terms of a product, their answer focused more on what not to do versus what to do.

“I am looking for a real use-case scenario,” said the bank representative. “If a [company] demoed ‘this is the problem we know this type of industry is having, and this is how our product will fix it’, that would interest me,” the representative said.

The rep agreed tech leaders are focusing more on projecting their ability to talk shop on AI over highlighting what makes their product different.

2. Cybersecurity is a Focal Point

Throughout the event, questions were raised around cybersecurity and its impact on product development and the customer experience. From developments of multi-factor authentication, AI-driven cybersecurity tools, and the need for the elimination of passwords and security questions, fintech leaders have hackers in mind.

Dr. Adam Lowe, founder of the blockchain storage hardware card Arculus and CIO at payments, security, and authentication provider CompoSecure, was one of the many in attendance who spoke about the need for strong cybersecurity solutions. In both his speaking session and in conversation with CFO, Lowe spoke about the value blockchain technology can bring to fintech, especially in areas around cybersecurity.

3. Ethics in Embedded Finance

Embedded finance companies are using AI to offer financial products at the point of sale, but an ethical question lingers. According to one speaker from a large embedded finance platform, their product could be used by “dental practices to offer customers loans that could pay for their treatment.” At face value, these products can not only encourage a consumer to take on bad debt, but force consumers to make a very important financial decision in a split-second environment.  

While global credit card debt rises, interest rates grow, and costs of living increase year after year, CFOs who want to set their employees up for long-term financial success may find an opportunity to offer financial literacy classes as a part of their benefits or perks packages for those who will be interacting with these types of products in their personal lives regularly.

4. Complacency is Lethal

According to leadership consultant Jacqueline Baker, who was in attendance to promote her newest book, avoiding complacency in the constantly changing work of technology should be foundational within within fintech.

Baker, who spoke to an executive audience about what it takes to climb the mountain of successful leadership, addressed how upskilling is a critical component to long-term success. “No matter how far you go in your career, what got you here today won’t get you there tomorrow,” she said.

5. Banking Customer Experience is Paramount for AI

For CFOs concerned about the impact of technology on their banking relationships, developers are focused on offering things like AI-powered predicted routing for individual user experience on their online banking platform, predictive engagement for specialized product offerings, embedded finance products, and AI-powered banking products that “actively” manage and best leverage both personal and business bank accounts.

Notable mentions:

• Payments companies are eager to engage with resuming student loan payments from a demand perspective.
• Some fintechs believe the “gamification” of banking is what Gen Z needs to become financially literate.
• Leaders are worried about their employees feeling threatened by AI, but their response is unclear.
• SMS services, or text messages outside of Apple’s IOS systems, are objectively insecure, according to cybersecurity leaders. 
• Environmental, social, and corporate governance (ESG) was of little concern at FinovateFall 2023.