SEC Embraces AI + The Palm That Pays: Big Shifts in Fintech

Welcome back to Fintech Forward, where we break down the latest in financial innovation—before it hits your feed. This week, we dive into the SEC's bold move into AI and the next wave of biometric payments that may soon make wallets feel obsolete.

Let’s get into it.

🚀 SEC Assembles AI Task Force to Lead the Future of Financial Regulation

In a major step toward modernising financial oversight, the U.S. Securities and Exchange Commission (SEC) has launched a dedicated AI Task Force to drive innovation and boost operational efficiency across the agency.

At the helm is Valerie Szczepanik, newly appointed as the SEC’s first Chief AI Officer. Szczepanik, known for her fintech-forward mindset, previously led the SEC’s Strategic Hub for Innovation and Financial Technology and has held multiple leadership roles across digital assets and enforcement. Her appointment signals a serious investment in tech-savvy leadership at one of the world’s most powerful financial regulators.

Why It Matters

AI has been transforming financial services for years—think fraud detection, algorithmic trading, and robo-advising. But government adoption has lagged. This move signals a turning point, especially in how the SEC operates and oversees a rapidly evolving market.

The AI Task Force will:

• Oversee responsible integration of AI across the agency

• Centralise AI efforts and foster cross-departmental collaboration

• Tackle AI lifecycle management, governance, and adoption challenges

• Identify high-impact use cases that can enhance regulatory oversight

From the Top

SEC Chair Paul Atkins called the initiative “a leap forward in augmenting staff capacity, accelerating innovation, and improving both efficiency and accuracy.”

Szczepanik added:

Expect the task force to explore not only internal AI applications but also external risks and opportunities—especially as AI becomes more deeply embedded in the fabric of finance.

AI leaders only: Get $100 to explore high-performance AI training data.

Train smarter AI with Shutterstock’s rights-cleared, enterprise-grade data across images, video, 3D, audio, and more—enriched by 20+ years of metadata. 600M+ assets and scalable licensing, We help AI teams improve performance and simplify data procurement. If you’re an AI decision maker, book a 30-minute call—qualified leads may receive a $100 Amazon gift card.

Book a call

_{For complete terms and conditions, see the offer page.}

✋ Biometric Fintech Gets a Pulse: Handwave Raises $4.2M for Palm-Based Payments

Forget your phone. Forget your wallet. A startup in Latvia wants you to pay with your palm—and investors are listening.

Handwave, a Riga-based biometric identity and payments firm, just raised $4.2 million in Seed funding to bring its palm recognition technology to retailers across Europe and the U.S.

The Vision: Frictionless, Contactless, Device-Free Transactions

Handwave’s system scans both surface patterns and subdermal vein structures in the palm to create a secure, encrypted ID. No cards, no apps, no facial scans—just a wave of your hand over a reader.

How It Works

• Onboarding: Users scan their palm using a smartphone camera

• Linking: Identity, payment method, and loyalty data are connected to a secure digital wallet

• Transaction: At checkout, users hover their palm over a reader to pay or verify age

Why This Matters

This isn’t your average fingerprint scanner. Handwave claims its system is:

• More secure than facial or fingerprint biometrics

• Resistant to spoofing attempts

• Anonymous (no GPS tracking)

• Privacy-focused, offering two-factor biometric authentication by design

Who’s Backing It

The round was led by Practica Capital, with support from FirstPick, Outlast Fund, and Inovo.vc. The funding will be used for:

• Regulatory certifications

• Pilots with retail partners

• Infrastructure development

Handwave’s tech could be a game changer for regulatory compliance, age verification, and customer loyalty—all while reducing checkout time. For retailers, that means higher throughput without needing expensive hardware upgrades.

Currently, Handwave is prepping for live trials and expanding its merchant partnerships, especially in the Baltics and broader European markets.

🧭 Fintech Forward Take

Both stories this week point toward a future where efficiency, security, and user experience are being reimagined—from the regulator’s desk to the checkout counter.

🔍 AI in regulation is no longer hypothetical. With Valerie Szczepanik leading the charge, the SEC is moving toward becoming a digitally empowered regulator in a financial world that increasingly runs on code.

🖐️ Biometric payments may sound like science fiction, but Handwave’s low-friction approach could set a new standard for in-store transactions—especially in a post-phone economy.

One thing’s clear: The tools of finance are changing fast. And whether you’re a regulator, a retailer, or a builder, it’s time to think beyond the wallet and beyond the spreadsheet.