Big Data – there’s 16 trillion GB of data floating around the planet and companies that are able to create insights from this data are going to be the oil miners of the future. We know that Google are doing this already. All other companies out there are looking at their data and thinking about the way this can be processed and used to create intelligent insights.
Blockchain, Robotics and Internet of Things – all have terrific prospects for improving efficiency and finding new ways of creating customer experiences in finance and other industries. Going into the next generation, there are going to be trillions of robots and sensors performing frictionless payments on our behalf. So these three technologies are going to be absolutely pivotal, as we know many of today’s companies have a blockchain and crypto focus.
Augmented reality – there are scientists and entrepreneurs that are creating high definition simulated virtual worlds as a result some reality will be disrupted by virtual reality: virtual museum excursions and property viewings from the comfort of your home are just a couple of examples. We can also see some of that in the use of smartphones vs POTS and digital cameras, which only a few people use these days.
Biotec and Nanobots – these show great potential for eliminating disease. Quantum computing contributes by being able to process all of that data to actually map the genome.
Traditional banking systems are also being disrupted by Fintech companies. Digital technology challenges banks in two ways: firstly, a number of transactions have been shifted from traditional channels to mobile and web applications, providing customers with more choice. Secondly, financial processing is more rapid and transaction costs are being reduced.
With digitisation, AI and Blockchain, AliPay has already surpassed the market capitalisation of $60B (set to $150B in April 2018) in just 14 years; compare this to Barclays, which has been around for over 100 years and has a market capitalisation of just $43B.
We have had WeChat (market cap at $84B in 7 years) come in and disrupt the AliPay model, as messaging has become the new platform. Now, project this forward to 2025; more and more business models will appear (Fintech or other industries) and fewer people will be needed as everything is digitised.
Talking about banks and transactions, we also saw the emergence of Transferwise, Tide and Revolut, and Amazon has introduced AmazonCash and AmazonPay. But the end goal of these companies is not to disrupt the banks, but to improve their clients experience, to increase the flow of commerce on their platform and create frictionless journeys.
These technologies are available to entrepreneurs today at relatively low cost, and so I’ll be very excited to see what the financial services industry and the world in general will look like in 10-15 years time.
We are currently working with fintech businesses; as well as being fascinated by the new developments and creativity, we are helping many with the accounting and tax challenges of running a business.
If you would like to talk about how we can help you, please contact us.