What will fintech look like in 10 years? ??

Hello fellow fintech enthusiasts.??

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Technology is now moving so fast that it’s difficult to predict what will happen next week, let alone next year.??

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So, what about next decade…?

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Too difficult to tell? ?

Futurist Bernard Marr gives it his best shot in an article for Forbes.??

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What you need to know right now:?

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The Biggest Fintech Trends In The Next 10 Years - Forbes?

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We’ve summarized Bernard Marr’s predictions below and given our assessment of how likely each one is to happen.??

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Autonomous Financial Ecosystems?

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• AI will evolve to autonomously manage financial systems, integrating services like risk assessment and asset management. Human intervention will decrease as AI predicts market movements and customer behaviors in real time.?

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• This will bring hyper-personalized financial services to more people, increasing access for underserved populations. However, ethical concerns about privacy, data protection, and AI biases will intensify.?

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Papaya’s take: 85% chance of happening.??

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Fintech is one of the few areas where AI and automation are actually making a practical difference in 2024. We can only see its influence growing.??

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Mainstream Adoption of Digital Currencies?

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• Cryptocurrencies and central bank digital currencies (CBDCs) could become mainstream, facilitating peer-to-peer transactions without intermediaries like banks. Programmable money via smart contracts will automate transactions based on preset conditions.?

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• These innovations will reshape traditional financial systems, creating new opportunities and challenges in financial transactions over the next decade.?

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Papaya’s take: 60% chance of happening.??

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We’ve written about CBDCs before. They’re big in Asia (especially India) but the jury is out on whether they will make an impact where it matters - the U.S.???

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Virtual Economies?

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• As online engagement grows, virtual economies will develop, with children preferring digital currencies like Robux over traditional money. Virtual real estate and digital assets will become more valuable.?

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• By 2035, virtual economies with their own currencies and financial systems will emerge, driven by user-generated content and blockchain-based transactions, creating immersive digital experiences.?

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Papaya’s take: 20% chance of happening.??

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This is the only prediction that really raised our eyebrows. While we’re not completely cold on the idea of the metaverse, 2035 feels too soon for this scale of adoption. Virtual economies will remain niche for now.??

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Quantum-Safe Finance?

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• Quantum computing will necessitate new security systems as current encryption methods become vulnerable. Quantum-safe encryption will be crucial for securing transactions and protecting data.?

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• Banks and financial institutions will prioritize developing quantum-safe security to counteract the threats posed by powerful quantum computers.?

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Papaya’s take: 90% chance of happening.??

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This one feels almost inevitable. Quantum computing will soon go mainstream, and it poses huge security challenges for classical computers. We are at the beginning of a quantum arms race.??

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Rise of Bio-Fintech and Neuro-Fintech?

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• Biotechnology and neurotechnology will revolutionize fintech, allowing money transfers via brain-computer interfaces (BCIs). Biometric security will enhance data protection and fraud detection.?

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• Ethical debates will arise over the extent of banks' access to biometric and neurological data, balancing innovation with privacy and ethical concerns.?

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Papaya’s take: 51% chance of happening.??

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This feels like sci-fi, but BCIs are already helping people with disabilities to walk and operate computer systems. The tech is in its infancy, so 2034 feels right for mind-controlled money transfer. Nonetheless, we’re edging above 50/50 for this one to happen.??

That's it for this edition. See you next time!