While 2034 sounds more like the setting for a Skynet take-over, It’s also just a short 10 years down the road and we all know how quickly things can change in a decade.

Looking in the finance sector, Banking in particular, I see a number of emerging changes that are set to reshape the environment – so let’s revisit in 10 years and see how close/far off I was.

• Personalized Banking: Banks are increasingly using AI to analyse customer data, offering personalised financial advice and product recommendations and this will extend past products and into lifestyle. For instance, apps like Cleo and Plum use AI to help users manage their finances more effectively.
  
• Banking as a Platform (BaaP): This model allows financial institutions to integrate services with third-party providers. A notable example is Starling Bank, which offers a marketplace allowing customers to access a variety of financial services through its app.
  
• Blockchain for Secure Transactions: Blockchain technology is being explored for its potential to make transactions more secure and transparent. Ripple, a blockchain solution, is already being used by banks for cross-border payments.
  
• Rise of Decentralized Finance (DeFi): DeFi represents a shift towards open, permissionless, and fully decentralized financial markets, which could redefine access to financial services and significantly reduce the number of intermediary businesses currently profiting on the legacy, inefficient systems of today.
  
• Increased Focus on Cybersecurity: As digital banking expands, cybersecurity threats will become more sophisticated, requiring advanced solutions to protect customer data and financial assets. Banking has traditionally been at the forefront of security and could even extend their services in a digital asset world to protect more than just money, NFT Vault anyone?
  
• Impact of Quantum Computing: Quantum computing has the potential to disrupt current encryption methods, challenging the security of financial transactions and data storage and so superior encryption technology is needed. Banking (and Defence) are well positioned to develop the leading edge Quantum Encryption standards and even productise this.

And entirely out of left field, this is my view of the most drastic change we might see:

Banks as Product Manufacturers.
As OpenData, AI and FinTech converge on the industry, I see the ability of banks to compete (fairly) in 10 years greatly diminished, and see profit focus forcing them to return to their roots in creating hyper-secure savings and lending products that are then distributed by other merchants (Apple, Amazon, FinTechs)

Okay, see you in 10 years.

Clinton