The Future of NFTs: Insights from Money 20/20 Europe
As the NFT landscape evolves, discussions around their potential continue to gain momentum. During the second day of Money 20/20 Europe, panelists emphasized that while NFTs currently capture attention, their technology remains underutilized and misunderstood.
Moderated by Aliya Das Gupta, Senior Vice President at Sygnum Bank, the session featured insights from industry leaders including Ori Levi, CEO of NFTrades; Vlad Panchenko, CEO and Founder of DMarket; and Julia Morrongiello, Head of Growth at Zero Hash.
Levi highlighted the transformative potential of NFT technology, stating, “Once in a decade, we encounter a technology that promises to revolutionize our world. Right now, NFTs are often represented by Bored Apes and JPEGs, which is exciting, but the underlying technology has far broader applications waiting to be explored.”
Panchenko added, “We are only scratching the surface. The true value of NFTs will emerge as the virtual and metaverse realms fully develop.”
Morrongiello noted existing barriers to broader adoption, such as the complexities of user interfaces and experiences that intimidate non-crypto natives. She pointed to issues like high transaction fees on the Ethereum blockchain and the need for clearer regulations. “We predominantly use NFTs for collectibles and digital art, but their potential extends far beyond that.”
The panelists expressed optimism that future applications of NFTs would become so seamless that consumers would unknowingly be utilizing them. Das Gupta summarized this notion: “When the technology becomes invisible, that’s when you know it’s truly successful.”
While discussing specific applications, Panchenko countered the necessity of NFTs for some use cases, particularly ticketing, suggesting that businesses could thrive without them. “The real growth potential lies in digital items that enhance business-to-business transactions,” he stated.
Collaborations Driving Change
In a separate discussion, Bernd Leukert from Deutsche Bank and Dr. Daniel Holz from Google Cloud reflected on the ongoing developments of their partnership, which commenced 18 months ago. Holz shared that their collaboration focuses on advancing Deutsche Bank’s digitization efforts, merging traditional banking culture with innovative technology.
“Last year was about building a strong foundation. Now, 2022 is centered on migrating and modernizing applications. We’ve transitioned over 30 solutions to a cloud-based environment, aiming for over 100 this year,” Holz reported.
Leukert emphasized the significance of capacity management, stating that the partnership has enhanced their operational agility. “Having unlimited capacity alleviates previous concerns around managing resources effectively,” he noted.
As they navigate the integration of cloud solutions, Holz mentioned the importance of training personnel across various departments to adapt to new technologies, indicating that over 2,500 Deutsche Bank employees are currently training to become cloud specialists.
Leukert added that they strive to establish a platform that welcomes fintech innovations, enhancing service offerings for their customers. Reflecting on the recent market volatility, he asserted, “Our customers increasingly demand collaboration and partnership.”
Pursuing Sustainable Growth
In a conversation about sustainable business practices post-pandemic, Jaidev Janardana, CEO of Zopa Bank, shared their commitment to mindful growth. “We never subscribed to the growth-at-all-costs mentality. When we pursued our banking license, we intentionally focused on product areas that could generate profitability while addressing customer needs,” he explained.
Janardana also discussed Zopa’s potential IPO, noting that market conditions are a critical factor in timing their decision. “We’re prepared to launch numerous new products in the coming months that align with our mission to help customers improve their financial situations in this challenging climate while ensuring profitability.”
Alexia Yannopoulos, Investment Director at SoftBank Investment Advisors, added that current trends indicate companies are looking towards acquisitions as a strategy for growth amid a tightening capital landscape.
The Resilience of Ukrainian Fintechs
As the conflict in Ukraine persists, a panel of Ukrainian fintech leaders convened to discuss the unique challenges they face. The panel included industry figures such as Maria Kolganova from the Independent Association of the Banks of Ukraine, Nataliia Slieptsova from Sportbank, and Anna Tigipko from izibank.
Tigipko highlighted the resilience of the Ukrainian fintech sector, stating, “Despite the war, our financial sector, particularly neobanks, has continued to operate effectively and innovate.”
Kolganova noted that the precursors established during the COVID-19 pandemic aided banks in adapting during the conflict, as consumers had already become accustomed to digital solutions. “People realized that banking operations were still functional, which helped stabilize confidence in the financial system,” she remarked.
As they navigated geopolitical challenges, Alyona shared her company’s relocation journey and emphasized their integral role in supporting the economy. “We view ourselves as a vital economic front, continuously working while the military stands firm in Ukraine,” she stated.
The panelists underscored the importance of collaboration and adaptability in the fintech sector, with Kolganova illustrating how fintech solutions enable seamless financial transactions for clients dispersed across Europe. Tigipko concluded by expressing gratitude for the global support extended to Ukrainian citizens while affirming their unwavering commitment to continue operations amidst adversity.