Three Technologies Reshaping Finance

Finance is evolving faster than ever before. AI is analyzing market trends in real-time, blockchain is eliminating the need for middlemen, and quantum computing—while still in its early stages—has the potential to break financial models as we know them.

A recent study entitled FinTech: a literature review of emerging financial technologies and applications by Gang Kou and Yang Lu (2025) analyzed nearly 300 research papers on emerging financial technologies. Their findings confirm what many of us have already know—finance is in the middle of a massive transformation, and three key technologies are leading the way.

The Kou & Lu (2025) study also briefly mentions Augmented Reality (AR) and Virtual Reality (VR) noting their potential to enhance customer experience in banking, financial education, and virtual trading environments, but highlights that research in this area is still limited compared to AI, blockchain, and quantum computing.

AI & Machine Learning: The Power of Prediction

AI is the engine driving better, faster, and more accurate decision-making. Banks, hedge funds, and small businesses are leveraging AI and Machine Learning (ML) to analyze trends, prevent fraud, and personalize financial services.

For example, banks traditionally relied on rule-based systems that flagged transactions based on predefined criteria. But AI? It learns patterns in real-time, identifying fraudulent activity before it happens. That’s a notable improvement for security.

AI-driven trading algorithms are outperforming human analysts by processing millions of data points in seconds, making split-second investment decisions that would take humans hours—if not days—to analyze.

In credit scoring, ML-based risk assessments analyze a wide range of data beyond credit history, offering fairer, more dynamic lending decisions. Imagine a situation where entrepreneurs with no traditional credit score can still access funding because an AI has analyzed their income flow, spending habits, and even social credibility. That’s the kind of financial inclusion AI can enable. AI also tailors financial products, such as investment recommendations and insurance plans.

Blockchain: A Trust Revolution

Blockchain is often associated with cryptocurrency, but its impact on finance goes far beyond Bitcoin. At its core, blockchain is about trust and transparency—something that traditional financial systems have struggled with.

When looking at international business transactions, we see that the process is slow and expensive with multiple intermediaries taking their cut. But blockchain-powered smart contracts can execute agreements automatically, without the need for banks, brokers, or lawyers. That means faster payments, fewer fees, and zero middlemen.

Decentralized Finance (DeFi) is a rapidly growing movement where people lend, borrow, and trade directly—without banks. DeFi platforms process billions of dollars daily, showing that blockchain is already in action.

Blockchain also helps with security. Its tamper-proof ledgers mean records can’t be altered or deleted, making fraud nearly impossible. In a world where financial crime costs trillions annually, that’s a big deal.

Quantum Computing: The Sleeping Giant

While AI and blockchain are actively transforming finance, quantum computing is still in its infancy. However, it has the potential to rewrite financial models as we know them.

Why? Because quantum computers can process calculations that would take traditional computers millions of years—in just seconds. This could completely impact:

• Risk Management: Quantum computers could run millions of market simulations in real-time, predicting financial crises before they happen
• Encryption & Cybersecurity: Quantum computers could break current encryption standards, forcing the financial industry to develop quantum-proof security before it’s too late.
• Portfolio Optimization: Quantum algorithms could construct balanced investment portfolios with near-instant risk assessments.

Challenges These Technologies Face

As with all new technologies, these technologies face challenges. They need to address:

• Scalability: AI and blockchain demand massive computing power, making large-scale adoption difficult.
• Regulatory Uncertainty: Governments are still playing catch-up, which means shifting rules and compliance risks.
• Algorithmic Bias & Ethical Concerns: AI is only as good as the data it’s trained on. Bias in lending, investing, or hiring decisions could reinforce financial inequality if not addressed.

What Business Leaders Should Do Now

So, what can you do today to prepare for the future of finance?

• Stay Educated: Keep an eye on AI, blockchain, and quantum computing developments. Finance isn’t just about money anymore—it’s about technology. I post regularly on these topics so tune into my feed once in a while.
• Start Small, Experiment Smart: If you’re not already using AI for risk assessment or blockchain for security, test it out in low-risk areas before making major moves.
• Partner Up: Work with partners and experts in these areas to help you navigate and future-proof your business.

Summing Up

The financial industry isn’t changing in the future—it’s changing right now. AI is outperforming analysts, blockchain is making banks rethink their role, and quantum computing is on the horizon.

How fast can you and your business adapt and thrive in this new landscape?

Want to Prepare Your Business for the Future of Finance?

If you have questions or want to share your own insights, I’d be happy to continue the conversation. Please reach out and explore how AI or blockchain can enhance financial decision-making and operational efficiency.