✍🏽 By
FinStack Futurist
So I have been thinking about where the world will be and especially from a technological point of view in the financial services industry. Not like 5 or 10 years away from now but like way out there.. Let’s take a looong loooooong view of about a hundred years.The financial services industry has been evolving rapidly since the advent of technology but with AI coming into the picture, how do we see the future ?
What is the ultimate future of the whole system as a whole ? Here’s my take on it.. Give it a read.
Lending will basically disappear in its traditional sense
think about it - in 100 years the whole concept of "lending" might not even make sense anymore. we'll have these ambient systems that just know when you need resources and allocate them automatically. no more loan applications or credit scores or any of that outdated stuff.
Credit scores are still a framework but a very constrained limited dimensions game as of now because at the moment the whole world is sort of energy scarcity mode. The future of the capital world still depends on fundamental units of energy consumption per person. What defines how much a person can take credit? If it is unsecured, then it is about betting whether the person will be able to pay off or not. Which means, we are assuming that the concerned person will consume resources and grow his/ her personal net worth proportionally and pay back what he has taken at the moment.
In an energy -scarred world, this makes the game very limited but assuming the technological advances we are going to make eventually not only from a daily utility standpoint but also from an overall energy generational perspective. Which means that new security systems with quantum computing will emerge.
This will make systems talk to each other seamless with almost net zero loss of information, making the resource allocation a dynamic real-time activity which the super AI system computes for each user taking into account millions of parameters and not just simple income statements.
We'll have resource allocation networks that optimize everything. Capital just flows to wherever it needs to go in real-time. the idea of going to a bank or even a digital platform to "apply" for money will seem primitive. The entire capital allocation process will become embedded into our digital identity as transactions will always be online into the networks.
Quantum systems will handle all the security. Instant verification with no central authority needed. The technology will be so advanced that the whole "trust" issue becomes irrelevant. Networks will operate on trustless protocol.
Banking without actual banks
The crazy thing is banks themselves probably won't exist - at least not like we know them now. they'll evolve into these specialized platforms that manage identity and data, but the movement of value will happen through autonomous systems.
Even today, most banks have now been reduced to merely wholesalers protected by banks given they have failed to innovate in comparison to new age fintechs. However, this behaviour is only going to accelerate and eventually the only reason governments want multiple banks is to create an identity framework so that users are given the illusion of choice.
I do think private currencies namely crypto will play a major role in this whole trustless process. Digital gov backed currency will be the baseline but private currencies will certainly take shape with active exchange rates based on actual utility.
Stable coins are already taking the international remittance to another level. Acting like super conductors for the flow of money, they will help accelerate the evolution of finance becoming a super network of resource allocation - playing as an interface between the real physical world and the virtual world.
Physical cash? gone completely. National digital currencies will take over but they'll work on completely decentralized infrastructure with privacy built right in.
What will still remain with you? Your FINANCIAL IDENTITY.
Everything becomes invisible in the future
The most radical shift will be how everything just becomes invisible. Your financial profile will be continuously authenticated through multiple biomarkers - not just fingerprints or face scans but probably stuff we can't even imagine now.
Your AI financial guardian will handle almost everything. It'll know you better than you know yourself and make most routine decisions without you having to think about it. This is where we want GoCredit to be for you.
Beyond earth…The future of finance
Here's a wild thought - as India's space programs expand, we'll need financial systems that work beyond Earth. Interplanetary finance will become a real consideration, not science fiction. As natural a need as food, when space colonies become a normal thing, we will need exploratory lending via networks. Yet to think more about it, anyone remembers Dune :)
The big picture - The future
Ultimately the whole concept of "financial services" as something separate from the rest of life will probably disappear. Economic activity will just be seamlessly integrated with everything else, managed by systems that balance resources according to what society needs and what individuals want. Your financial identity will merge with your consciousness in terms of doing anything.
what do you think? Is this where we're headed? Or am I missing something big about how finance will transform? Drop your thoughts below.
Comments