Future of Financial Services

A Look At The Forces Shaping The Future of The $163 TN Global Banking Industry

Abhishek Kothari

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“Giants are not what we think they are. The same qualities that appear to give them strength are often the sources of great weakness.”
Malcolm Gladwell, David and Goliath: Underdogs, Misfits, and the Art of Battling Giants

The Financial Services Industry was always a bastion of incumbents with very high barriers to entry. Silicon Valley has given birth to many disruptions meant to upend the world of finance. However, along with other forces, what is upending finance today is a product of anonymity — a cryptocurrency created by the ‘Banksy of the Blockchain’ world — ‘Satoshi Nakamoto’. Although mathematics disrupted finance through financial engineering and created complex, derivative instruments such as swaps, Collateralized Debt Obligations (CDO’s), nobody foresaw cryptography upending finance using Blockchains as the decentralized networks of the future. Just as an anonymous creator is reshaping finance through Bitcoin’s underlying technology, forces such as demographics, the need for financial inclusion, advent of technologies such as Blockchains and Artificial Intelligence (AI), reduced barriers to entry and regulatory support are giving birth to new entrants into the $163TN (by value) world of banking and finance. This article examines finance of the future and provides an overview of powerful forces disrupting finance. Read this article to understand who the new Goliaths of finance could be?

Establishing The Framework

I vaguely remember the day I created my twitter account. Jack Dorsey, twitter’s co-founder hails from the same city I live in today. However, I must admit the purpose of twitter as a large group SMS was very alien to me. Think of how many bankers used to think Blockchain technology is from Mars. However, I clearly remember Marc Andreessen, the founder of Netscape and Andreessen Horowtitz — a$4.2 billion Venture Capital (VC) firm, tweeting more than any other user on twitter. His first six months on twitter were epic. Then, there was an interview with Bloomberg Markets in 2014 which…

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Abhishek Kothari

Futurist@The Intersection of Finance, Tech & Humanity. Stories of a Global Language: “Money”. Contributor @ Startup Grind, HackerNoon, HBR