Future of financial services: Transformative trends with 10Forward
Discover the trends that will redefine finance by 2034 – from data ownership through privacy tokens to ESG-focused investments and beyond.
Over the last 20 years, financial services have transformed more dramatically than in the previous 600 years combined. In such an environment, resting on past successes isn’t an option. The next 10 years will bring even more fundamental changes to the core of banking, the way we earn and pay and even the concept of money.
This evolution is marked by the seamless integration of fintech ecosystems, the rise of data ownership through privacy tokens, and the powerful influence of AI in personal finance. As open banking paves the way for more accessible services and ESG-focused investments gain traction, the future of banking is being redefined. Digital asset management and financial inclusion initiatives are set to democratize financial services like never before.
In our 10Forward trend report, we explore four possible scenarios for the future: Neotropia, Ecolysium, Wastelandia and Bloomfield, considering both social and technological changes. Each scenario provides valuable insights to help you prepare for the future, regardless of how things unfold. By understanding these trends, you can better navigate the evolving landscape of digital finance and capitalize on new opportunities.
Experience 10Forward and download your playbook.
Expert insights on the finance industry
Data ownership and privacy tokens are ushering in a new era where individuals have unprecedented control over their personal information. These tokens, often referred to as privacy coins, empower people to protect their data from intrusive corporations, transforming their digital footprint into a valuable asset. In Neotropia, this shift allows citizens to monetize their data, marking a significant step towards digital autonomy. This trend is fundamentally reshaping the financial landscape, providing people with the tools to manage their data independently and securely – something previously unimaginable.
To succeed in this new landscape, companies must prioritize robust data security and privacy measures while simultaneously enhancing customer experiences. Implementing strong encryption protocols like AES-256 is crucial for safeguarding data both in transit and at rest. Leveraging AI and Machine Learning (ML) to detect and respond to security threats in real time is also vital for maintaining customer trust. Additionally, adopting a zero-trust security model ensures that all connections are rigorously verified, minimizing the risk of breaches. Companies should also focus on techniques like differential privacy to anonymize data, enabling valuable insights without compromising individual privacy.
ESG-focused investment
"In the banking sector of the future, Environmental, Social and Governance (ESG) standards will transition from competitive differentiators to universal norms. This evolution reflects a broader societal shift towards sustainability and equity, urging financial institutions to align their operations with these global imperatives."
Open banking
"The significance of open banking cannot be overstated, as it provides an essential foundation by offering access to real transaction data, crucial for evaluating financial behavior. Additionally, the potential of non-financial data, such as the correlation between keeping a phone charged and financial responsibility discovered by Alipay and WeChat Pay, introduces an innovative dimension to risk assessment. This dual approach enriches our understanding of creditworthiness beyond traditional financial metrics."
Blockchain-based micro-economies
"DeFi and Web3 are revolutionizing finance, shifting the focus to inclusivity, transparency, and community-led governance. This isn't merely an adoption of new technologies but a fundamental rethinking of financial systems for enhanced global equity."
Biometric ID revamps commerce experiences
"The era of physical payment methods is drawing to a close. The future lies in digital identities and transactions, where physical mediums become obsolete, heralding a new age of financial interaction that is both sustainable and innovative."
Curious about more trends?
What's next?
As we look towards 2034, the changes described in this report are set to transform the financial world. Both businesses and people need to stay up-to-date and flexible to make the most of these developments. The future of finance isn't just about using new technologies; it's also about understanding how these technologies work together to build a more inclusive, efficient, and sustainable financial system. At Star, we recognize how important it is to keep up with the fast-paced changes and new challenges in the global finance industry.
Download your playbook
Get critical insights and tailored recommendations for the finance industry. Learn how to navigate the future and position your business for success.
