Innovation trends in any industry are dependent on the evolving needs of customers and the lifecycle/stages of the products that are serving those customer needs. That said, there are four core facets to explore here. These facets are the bridges that transport us from one trend to another in building a tomorrow that’s more inclusive, equitable, and built for improving financial wellbeing.
1. “Why not?”; “How might we?”
… At the root of any key change is the group of people who are willing to push the boundaries and think big. With continuous support in funding, talent, and technology, these daredevil entrepreneurs will continue to advance the financial ecosystem.
2. New Use Cases
– Greater Mobility… global mobility is quickly becoming the norm, and the financial support system will evolve to support this trend rather than hindering it.
– Greater Participation… New entities may start participating in the financial ecosystem in unexpected ways… it’s easier to imagine more participation to come from new companies or people joining the digital economy. A new set of payments and infrastructure is being built to enable the gig economy… The next million or billion users will have different expectations; their underlying emotional and social values regarding their finances are likely very different from those of current user bases.
– Greater Choice & Flexibility… The formation of a new, universal financial language is necessary due to the advent of alternate currencies and decentralized networks… this new language will need to open new doors such as carrying financial transactions without the need to exchange monetary value.
3. Neglected Use Cases that are Now Worthy of Solving
… Adaptable financial products and services that can provide stronger impressions of security and freedom will be an area of advancement based on growth in underlying technologies such as artificial intelligence.
4. Enablers and Infrastructure Providers
… Banking as a service – In order to support the ever-growing need for digital building blocks as legacy systems are being jettisoned, banking as a service for each of the layers in the banking stack is on the rise. B2B/enterprise companies are transforming businesses and making it very easy to interact and operate in a once complex environment.
5. Big events (aka black swans)