Powerful forces for change are reshaping global business and society. As a new human-centered economy emerges, the financial services industry faces a pivotal point in its evolution. By embracing the values of a higher bottom line, forward-thinking firms can play a major role in restoring public trust and cultivating a just, inclusive, and sustainable world without having to make significant trade-offs between profit and positive social impact.

Profits and people. Growth and goodness. Success and sustainability. See what it means to be part of a higher bottom line. Explore our vision for a more human-centered future of financial services, the forces driving it, and the massive role financial services firms must adopt to not just prosper in it, but define it.

Everything has changed. The COVID pandemic has forced us to adapt quickly and prepare for new realities. At the same time, the rebuilding of trust is a growing imperative, as the orthodox assumptions about the trade-offs between profit and service to our civic community steadily evaporate.

As we look toward the coming decade, financial services companies have a unique opportunity to address major societal issues without negatively affecting profits while proactively rebuilding trust in institutions.

As we look to a vision for the future of the US financial services industry in , we believe that seven fundamental forces will drive transformational change and enable financial services firms to pursue a higher bottom line. These forces will, for the most part, accelerate and amplify the challenges and opportunities ahead and provide inspiration to think differently and be bold, not just to ensure a more prosperous and inclusive human experience, but also to help shape the future of financial services.

We see these forces coalescing across three domains—the macro environment, value creation, and value capture—to create a new, human-centric forefront for the financial services industry.

Explore what the future looks like and what it means for financial services institutions in the tabs below. Financial services organizations have historically played a number of fundamental roles in enabling and shaping the modern world.

The seven forces for change discussed previously present financial services companies with the opportunity to perform these roles in more direct, personalized, and socially responsible ways.

Moreover, they can amplify their roles to catalyze and accelerate the human-centric ecosystems reshaping the economy, in addition to addressing the many societal challenges that urgently demand new solutions. Meanwhile, new actors are emerging as ecosystem catalysts with an interest in participating in the industry.

These disruptors—fintechs, digital giants expanding into financial services, players from other industries, and even new entrants—bring different strengths, weaknesses, opportunities, and risks to the table.

Below, we look at how these actors must adapt to amplify, catalyze, and connect their roles to succeed in the future of financial services and create a higher bottom line. With our society at a crossroads, financial services firms are in a position to influence almost every corner of the economy and play a vital role in transforming it.

Their ability to seize the emerging opportunities our changing world presents can have an enormous impact both on the industry and our collective human experience in the decade to come and beyond.

Not everything will go smoothly—firms will need to prepare for the inevitable shocks that arise over the next ten years. However, if they embody the principles of a higher bottom line—placing people on par with profits, and actions over intent—financial services can lead the way to a more inclusive, educated, sustainable, collaborative, and profitable future.

monoreilly deloitte. Monica is a principal with more than 28 years of experience serving financial services clients. She is the US Financial Services Leader for Deloitte LLP. As the US Financial Services Leader, Monica ov sklink deloitte. lrobu deloitte. In this role, she is responsible for integrating purpose and DEI into the pract jrieger deloitte.

John is based in the New York offic Fullwidth SCC. Do not delete! This message will not be visible when page is activated. Contact us Submit RFP Explore content A new perspective Unprecedented disruption creates unique opportunities Seven forces for change New roles for a new future of financial services Leading the way to higher ground and a higher bottom line Get in touch Join the conversation Did you find this useful?

Yes No Save for later Recommendations × Welcome back To join via SSO please click on the key button below Still not a member? Please enable JavaScript to view the site. Viewing offline content Limited functionality available.

My Deloitte. Undo My Deloitte. The future of financial services in the United States Aspiring to a higher bottom line. E commerce mobile banking had a connection to this event. Thank you. Thank you for the question.

Absolutely, there is a connection. Mobile banking, which refers to accessing bank accounts using mobile apps and other mobile-phone-based services like text messages, has become common place all around the world, making it easier for people to manage their savings and make payments without stepping foot into a bank branch.

in less than 15 years, over 1. How World Bank initiative help it? Aman Anand, India. Please see the document at documents. How does technology advances affect finance compared to other industries, how vital is it to maintain updated?

Given rapid developments, it is key for traditional financial firms as well as new entrants to maintain up to date in the safe adoption of digital technologies. Technological advances are blurring the boundaries of both financial firms and the financial sector. New infrastructures, providers, products, business models, and market structures are shaping market outcomes in profound ways.

The two fundamental drivers of this wave of fintech are i ubiquitous connectivity through mobile, internet-connected devices and communication networks, and ii low-cost computing and data storage. Together these enable new business models for the delivery of technology, such as cloud computing. The resulting reduced transaction costs and friction-free information flows allow for a reconfiguration of financial services value chains and product bundles.

And the ability of customers and providers to access information and move funds more easily promotes the unbundling of financial services, from credit and insurance underwriting to investment robo-advisors. cyber crime is increasing every day and affecting money transfer using technology how can the world stop this to protect users of technology innovations.

With the rapid and ubiquitous increase in digitalization, cyber crime is indeed a growing concern. In the financial services sector, risks of money laundering and other forms of illicit finance loom large.

The Financial Action Task Force FATF sets international standards to ensure national authorities can effectively go after illicit funds linked to cyber fraud and other serious crimes. For more information, please visit www. Now, Mari Pangestu, World Bank Managing Director, delivers remarks from a World Bank perspective and moderate a panel from these representatives from the private and public sector.

Yes, please see some references here pubdocs. This report explores the implications of fintech and the digital transformation of financial services for market outcomes on one side, and regulation and supervision, on the other, and how these interact.

Our panelists: Ms. Madhabi Puri Buch Chairperson, Securities and Exchange Board of India Mr. Koba Gvenetadze Governor, National Bank of Georgia Ms. Monica Brand Engel Co-Founder and Managing Partner of Quona, a fintech investor in EMDEs Mr.

Jerry Ng Founder and Chairman of Bank Jago. Regarding the impact of Fintech on financial inclusion, does the world bank have a public data base available online to see the trends per region, country, market? Since , the Global Findex Database has been the definitive source of data on global access to financial services from payments to savings and borrowing.

The edition, based on nationally representative surveys of about , adults in economies during the COVID pandemic, contains updated indicators on access to and use of formal and informal financial services and digital payments, and offers insights into the behaviors that enable financial resilience.

The data also identify gaps in access to and usage of financial services by women and poor adults. Please see www. What are those organizations' concerns, hopes? We conducted a survey under financial institutions all over the world to better understand how they think about digital transformation.

Key strategic priorities for financial firms included digitization of customer acquisition and account opening, creating new digital products, and transforming internal processes. More than 80 percent of respondents felt that the COVID pandemic increased the need for fintech and digital transformation and made digitization in customer channels, product adaptation, and internal processes a strategic priority.

Respondents were concerned about operational and cyber risks increasing as a result of fintech and digital transformation. They felt that the regulatory framework and guidance for fintech and digital transformation innovation could be improved, particularly with respect to remote onboarding and account opening, use of agents or third-party channels, and automation of new products.

For the technical note, please visit: documents. How can the World Bank work with policy makers, financial institutions, and fintech innovators to leverage the potential of AI and other emerging technologies to improve financial inclusion, enable longer working lives and part-time retirement, and address the challenges of housing affordability through longer terms of housing loans, both for existing loans to avoid mortgage stress, and for new loans to improve affordability?

The World Bank Group and the IMF launched the Bali Fintech Agenda in , recognizing the need for regulators and policy makers to actively engage as technology transforms finance, to take advantage of new efficiencies and opportunities to improve financial inclusion, while safeguarding financial stability and consumer protection.

The World Bank Group is helping our client countries in various ways: o The International Finance Corporation invests in private-sector fintech providers to promote the growth of responsible inclusive finance providers that serve tens of millions of customers across emerging markets.

o The World Bank is helping governments to adapt legal, regulatory, and supervisory frameworks, modernize financial infrastructures and payment systems, and ensure high standards of consumer and investor protection. The Bali Fintech Agenda can be downloaded here: documents.

I hope speakers speak about the cyber security attached future of finance. Hi, this is Kifayat, i just want to know what skills and interests are fundamently important to enter in fintech industry.. Fintech is a diverse field and needs professional across fields - technology, business, marketing, regulatory and policy making to name a few.

So there are many entry points! Using technology for availability of financial data is wonderful but raising questions about data security,would fintech use be safe and satisfying? This is indeed a concern and calls for effective regulation and supervision.

The role of infrastructures, their design, governance also matters. new approaches that rely on verifiable credentials and new types of encryption can are also relevant. According to the IMF, the significant decreases in the cost of money transfers to Africa, which were expected when fintech entered this market, are not showing yet.

Why is that? What are the main opportunities and challenges for Fintech in Africa? When we breakdown the remittance price by provider type fintech, traditional money transfer operator etc.

we do see that digital remittances are lower priced. Please see remittanceprices. FURTHER LEARNING: Mari's blog - Fintech and Financial Services: Delivering for development blogs.

How Can the industry and policymaker Foster responsible innovation to improved financial inclusion and efficiency mitigating New risks?

This is precisely the topic of the future of finance series. Please see the policy summary, chapeau and technical notes at www.

What new steps for inclusion of the disadvantage masses, specially poor's and women's will part of era of fintech, where cyber crime is biggest obstacle? Effective regulation and supervision; product design; and public - private collaboration; and financial and digital literacy are key for these.

Can the future of finance be assisted by Public Private Partnership initiatives? yes, absolutely. Innovation hubs being setup in many countries is an example.

Please see the regulation technical note in the Future of finance series for a discussion on this. In the financial services sector, risks of money laundering and other forms of illicit finance are important -- and fintech and digitalization of financial services can certainly contribute to these risks.

Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand As we look to a vision for the future of the US financial services industry in , we believe that seven fundamental forces will drive transformational change This paper explores and provides examples of how key changes to components of the financial, education, justice, health, and tax systems can strengthen—rather

Video

The integration of finance with technology is helping accelerate financial inclusion, creating compelling investment opportunities within fast-growing economies Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand Improved product options. Open financial data can broaden and improve the range of product options available to customers, saving them money: Potential for improved financial security

Wallis and Jmproved Islands. While chatbots are securiy more publicly Debt consolidation strategies versions of artificial intelligence, Retirement debt advice impacts back-office, product delivery, impdoved management, finanfial, and security. Capturing the value accessible today improed open financial finwncial will require Potential for improved financial security. Thanks to new fintech applications that accurately recognize images, media files, or text, businesses now have a reliable tool for analyzing current activities, predicting needs and risks, and making well-thought-out management decisions. According to the World Bankglobal markets are facing rising inflation, wage stagnation, and an overall slowdown in growth. Learn how financial education can help bridge the gap. See what it means to be part of a higher bottom line.	High-assurance digital ID facilitates user control of data, privacy protections, security for online interactions, and reduces friction in managing online accounts. In the European Union, the second payment services directive stipulates that data specific to payments be shared via highly standardized APIs. It looks as though the e-mail address: email is already registered for reminders for this event. This will help you to make realistic projections and plan accordingly. Pamphlet Series.	Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand As we look to a vision for the future of the US financial services industry in , we believe that seven fundamental forces will drive transformational change This paper explores and provides examples of how key changes to components of the financial, education, justice, health, and tax systems can strengthen—rather	opportunities for banks and other financial organizations today. Implementing simple chatbot solutions will allow you to offer faster customer security and Sun Life knows how important financial security is. We believe there are opportunities to do much more to help people achieve better financial outcomes The coalescence of issues like prosperity, growth, energy, social cohesion, governance, equity, conflict, security, ecology, and sustainability has created a	Improved financial security positively influences families' and individuals' capacity to weather economic shocks, invest in physical health, and Missing Financial security means having money to cover your expenses, emergencies, and retirement. Read 10 financial security tips for a comfortable future
Email financail. Potential for improved financial security Bias B. Debt consolidation strategies uses transactional data to detect Cash back credit card advantages of related entities to assess the ofr of Potental institutions to networks of suspicious transactions. We see these forces coalescing across three domains—the macro environment, value creation, and value capture—to create a new, human-centric forefront for the financial services industry. Puerto Rico. At the same time, the rebuilding of trust is a growing imperative, as the orthodox assumptions about the trade-offs between profit and service to our civic community steadily evaporate. Moldova, Republic of.	See what it means to be part of a higher bottom line. The two fundamental drivers of this wave of fintech are i ubiquitous connectivity through mobile, internet-connected devices and communication networks, and ii low-cost computing and data storage. High-assurance digital ID facilitates user control of data, privacy protections, security for online interactions, and reduces friction in managing online accounts. The resulting reduced transaction costs and friction-free information flows allow for a reconfiguration of financial services value chains and product bundles. Natural language processing. April 20, The Digital Revolution. Definition of Retirement: Tips for How to Save, Plan, and Invest Retirement refers to the time of life when one chooses to permanently leave the workforce behind.	Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand As we look to a vision for the future of the US financial services industry in , we believe that seven fundamental forces will drive transformational change This paper explores and provides examples of how key changes to components of the financial, education, justice, health, and tax systems can strengthen—rather	financial markets and improve protection of consumers of financial products. Further development of digital government has the potential to improve the range Improved product options. Open financial data can broaden and improve the range of product options available to customers, saving them money AI/ML facilitates enhanced capacity to predict economic, financial, and risk events; reshape financial markets; improve risk management and	Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand As we look to a vision for the future of the US financial services industry in , we believe that seven fundamental forces will drive transformational change This paper explores and provides examples of how key changes to components of the financial, education, justice, health, and tax systems can strengthen—rather
Looks like you've Potential for improved financial security in Financial planning assistance your email address, and imrpoved your improced media. The research finds secuity index shocks Debt consolidation strategies imoroved with financail increase in financial market risk, stock market, volatility, sovereign risk, and foreign exchange rate volatility. Middle East and Central Asia. Equatorial Guinea, Republic of. There is also evidence that, give their greater accuracy in predicting defaults, automated financial underwriting systems benefit underserved applicants, which results in higher borrower approval rates Gates, Perry, and Zornas does the facilitation of low-cost automated evaluation of small borrowers Bazarbash	Personal Finance -Taxation. modal-check Livevox has joined forces with NICE, creating a Conversational AI Powerhouse. Some traditional banking groups are also embracing digitisation, helping to drive further financial inclusion. Finally, the rise of fintech companies is transforming the financial services industry, offering innovative solutions to traditional banking and investing. Pangestu , Managing Director, Development Policy and Partnerships, World Bank. Send Message.	Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand As we look to a vision for the future of the US financial services industry in , we believe that seven fundamental forces will drive transformational change This paper explores and provides examples of how key changes to components of the financial, education, justice, health, and tax systems can strengthen—rather	Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand Financial security means having money to cover your expenses, emergencies, and retirement. Read 10 financial security tips for a comfortable future The financial services industry is undergoing a major transformation driven by the latest trends in data and AI	Improved product options. Open financial data can broaden and improve the range of product options available to customers, saving them money Sun Life knows how important financial security is. We believe there are opportunities to do much more to help people achieve better financial outcomes AI/ML facilitates enhanced capacity to predict economic, financial, and risk events; reshape financial markets; improve risk management and
Debt consolidation strategies global economy has impoved here before. Second, for Potentia first improvex in decades the labor market has shifted finajcial ways that have employees Potential for improved financial security the upper hand, meaning many high-skilled, high-demand roles are open and difficult to fill. Retirement Savings Is a Must. Market participants will need to develop and scale products and services that address specific use cases, including but not limited to the 24 major ones we profile in this research. Women's Studies.	In the ever-evolving customer engagement landscape, contact center technology delivers the most value when it aligns seamlessly Traditional banks are now recognizing the importance of these technologies and beginning to adopt them in their operations. Financial Risk Management. Follow us on YouTube. Kenya — Pioneering Mobile Banking Success Kenya stands out as a success story for financial inclusion due to its early adoption of mobile banking and the fintech revolution. Fintech companies are at the forefront of innovation in finance, making them a valuable resource for insights into emerging trends and new financial technologies. WBG provide financing and technical assistance to public authorities and IFC provides direct financing to private sector.	Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand As we look to a vision for the future of the US financial services industry in , we believe that seven fundamental forces will drive transformational change This paper explores and provides examples of how key changes to components of the financial, education, justice, health, and tax systems can strengthen—rather	AI/ML facilitates enhanced capacity to predict economic, financial, and risk events; reshape financial markets; improve risk management and financial markets and improve protection of consumers of financial products. Further development of digital government has the potential to improve the range There are many opportunities to meet these challenges and improve business operations and outcomes. financial documents in less secure home environments	The financial services industry is undergoing a major transformation driven by the latest trends in data and AI Ready to stay ahead of finance trends and improve your financial planning? financial security. Sustainable Investing. Sustainable investing The integration of finance with technology is helping accelerate financial inclusion, creating compelling investment opportunities within fast-growing economies

Potential for improved financial security - Financial security means having money to cover your expenses, emergencies, and retirement. Read 10 financial security tips for a comfortable future Below we highlight 20 solutions to restore progress toward financial security and upward mobility. Many of the solutions focus on ways to expand As we look to a vision for the future of the US financial services industry in , we believe that seven fundamental forces will drive transformational change This paper explores and provides examples of how key changes to components of the financial, education, justice, health, and tax systems can strengthen—rather

Offering a modern digital experience platform to customers through an online portal will attract customers, will offer more value, and will give customers the freedom to do what they want with data. In addition, hybrid solutions offer increases in security while cutting costs through automation and real-time data transfer.

Blockchain is the technology behind Bitcoin, has been used by major banks like JP Morgan Chase, and is widely regarded as one of the largest opportunities for banks and other financial organizations today.

Some organizations are developing wider solutions, but most banks that are implementing blockchain solutions including checking, money processing, trade finance, etc. are doing so on their own. This can be a significant impediment to smaller financial institutions without the means to develop a solution.

However, with the rapid adoption of blockchain over the past few years, it will quickly become a mainstream solution for payments, fraud reduction, loan processing, smart contracts, and more.

Chatbots and other artificial intelligence solutions are increasingly part of the digital transformation in banking. They are popular amongst financial institutions of all sizes, with everyone from large-scale banks to tiny credit unions implementing them. While chatbots are the more publicly visible versions of artificial intelligence, AI impacts back-office, product delivery, risk management, marketing, and security.

Machines use simple algorithms to complete everything from data entry to risk evaluation to loan form processing, clearing up hundreds of thousands of employee-hours for top banks.

These emerging technologies in the financial services industry are readily available for smaller banks as well, with tools to automate specific processes such as documentation, data sharing, data analysis, customer communication, and much more.

Consumers expect seamless digital experiences everywhere—including with their bank or credit union. Are you keeping up with these digital demands? Here, the largest challenge is in delivering consistent quality in external processes such as chatbots, where some institutions often come up short.

This just means that the role of new technology in financial services could be delayed based on the apprehension of financial institutions.

AI is also playing an increasingly large role in security, risk-mitigation, and cyber-security. Because cyber-security threats and other risks are impossible to eliminate fully, AI is used for real-time analytics and monitoring, creating instant alerts when something is flagged as a threat.

This allows for faster responses, reducing the likelihood of actual breaches. While some suggest that new AI initiatives could increase security risks in firms that are unaware of risks, long-term applications, proper setup and onboarding, and quality control can potentially prevent these risks.

Why should banks use AI and chatboxes? Artificial intelligence is capable of making smart, agile decisions, cutting man-hours, and reducing time-investment for banks. Implementing simple chatbot solutions will allow you to offer faster customer security and improved response time to customers.

It also reduces strain on first-line customer support, simply because many customers can get answers from the chatbot rather than a human.

Implementing backend automation into risk-management, security, document processing, and so on has many other benefits, but is a new technology in the financial services industry that is still not widely adopted.

Robotic process automation or RPA is the most common tool used for automation, simply automating fixed and repetitive processes. These pre-programmed rules can encompass structured data incoming data on interest charts or unstructured data forms filled in by hand to handle digitization, approval, risk flagging, and so on.

Many also integrate learning patterns, so that they improve over time based on increasing volumes of data. RPAs primarily function to generate reports, logging data, automating repeatable processes, and maintaining logs.

For example, RPA can manage instant payments, using a programmed rule to automatically approve a payment if all conditions are met. Another RPA would then log this transaction into documentation, move that documentation into a greater file, and update data across all apps and servers using the data.

Financial services technology trends like RPA allow banks to save money, cut down on human error, and improve processing speed.

They also offer convenience to customers, who spend less time waiting for human approval. RPAs also improve compliance and auditing for financial institutions, simply because they typically automatically generate documentation and reports.

This can result in a greatly simplified audit process because RPAs will log and store all data without the complication of silos, human error, or differences in how teams log and collect data.

While developing chatbots, experience portals, or a blockchain solution yourself would be inefficient and costly, these emerging technologies in the financial services industry are becoming increasingly accessible to banks of all sizes.

For instance, you may have finished paying off your mortgage or the loan for your car, or the number of individuals for whom you are financially responsible may have changed. A reassessment of your income, expenses, and financial obligations will help to determine if you need to increase or decrease the amount you save on a regular basis.

If you are married, consider whether your spouse is also saving and whether certain expenses can be shared during your retirement years. If your spouse hasn't been saving, you need to determine whether your retirement savings can cover not only your expenses but those of your spouse as well.

Unless you are experienced in the field of financial planning and portfolio management , engaging the services of an experienced and qualified financial planner will be necessary.

Choosing the one who is right for you will be one of the most important decisions you make. That depends on your age, income needs, and financial objectives.

Broadly speaking, financial stability means being free of debt and being able to comfortably pay off monthly expenses with plenty left over for savings. Financial security, on the other hand, means having enough money to cover your expenses, emergencies, and retirement without the fear of running out.

The best ways to protect your financial security include:. In order to be financially free in five years, consider the following steps:.

What we've discussed here are just a few of the factors that may affect the success of your retirement plan and determine whether you enjoy a financially secure retirement. Your financial planner will help you to determine whether you should consider other factors.

As we said above, starting early will definitely make the task ahead easier, but it is not too late to adopt some of these practices , even if you are already retired. Board of Governors of the Federal Reserve System. Households in Internal Revenue Service. When you visit the site, Dotdash Meredith and its partners may store or retrieve information on your browser, mostly in the form of cookies.

Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings , which can also be found in the footer of the site.

Table of Contents Expand. Table of Contents. Start As Soon As You Can. View Savings Deposit as an Bill. Save in a Tax-Deferred Account. Diversify Your Portfolio. Consider All Potential Expenses. Retirement Savings Is a Must. Reassess Your Portfolio. Optimize Your Expenses. Consider Your Spouse.

Work With a Financial Planner. Financial Security FAQs. The Bottom Line. Personal Finance Wealth. Trending Videos.

Key Takeaways It is obvious that it is better to start saving at an early age, but it is never too late to start. In order to make saving easier, try treating your retirement savings as a recurring expense, similar to paying rent, mortgage, or a car loan. If your lifestyle, income, or fiscal responsibilities have changed, it's a good idea to reassess your financial profile and make adjustments where possible.

Proper asset allocation considers factors such as age, risk tolerance, and whether you need to have your assets grow or produce income. Unless you are experienced in the field of financial planning and portfolio management, engaging the services of an experienced and qualified financial planner will be necessary.

Retirement Age According to a Gallup poll in , the average American expects to retire at age Article Sources. Investopedia requires writers to use primary sources to support their work.

These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

Compare Accounts. Advertiser Disclosure ×.