Finance in 2035: My Predictions as a Technology Futurist
Opening Summary
According to the World Economic Forum, digital payments are projected to reach $14 trillion globally by 2027, representing a staggering 42% increase from 2023 levels. In my work with financial institutions worldwide, I’ve witnessed firsthand how this digital tsunami is reshaping everything from retail banking to institutional finance. The traditional finance industry we knew just five years ago is rapidly disappearing, replaced by a dynamic ecosystem where technology isn’t just an enabler—it’s becoming the core business. I’ve consulted with organizations ranging from legacy banks struggling to adapt to fintech startups disrupting entire market segments, and what I’ve observed is an industry at a critical inflection point. The convergence of artificial intelligence, blockchain, and quantum computing is creating unprecedented opportunities while simultaneously threatening established business models. As we stand at this crossroads, understanding where finance is heading isn’t just strategic—it’s existential for any organization operating in this space.
Main Content: Top Three Business Challenges
Challenge 1: Legacy Infrastructure and Digital Transformation Paralysis
The single biggest challenge I encounter in my consulting work with financial institutions is what I call “digital transformation paralysis.” According to Deloitte research, over 70% of financial institutions are still running core systems that are more than 20 years old. These legacy systems weren’t designed for today’s real-time, data-intensive environment. I’ve walked into boardrooms where executives understand the need for change but are paralyzed by the complexity and risk of migrating from systems that process billions of dollars daily. The cost of maintaining these aging systems is astronomical—Accenture estimates that legacy technology consumes up to 80% of IT budgets in traditional financial institutions. What’s more concerning is that this technical debt creates security vulnerabilities and limits innovation velocity. I’ve seen organizations where launching a simple new digital product takes 18 months because of integration challenges with legacy backends, while fintech competitors can deploy similar solutions in weeks.
Challenge 2: Regulatory Complexity in a Borderless Digital Economy
As Harvard Business Review recently highlighted, the regulatory landscape for finance has become exponentially more complex with the rise of digital assets and cross-border transactions. In my strategic sessions with global banks, I consistently hear that regulatory compliance now accounts for 15-20% of total operational costs. The challenge isn’t just the volume of regulations but their contradictory nature across jurisdictions. What’s compliant in Singapore might violate EU regulations, creating impossible situations for global institutions. I recently advised a multinational bank that was struggling with 47 different regulatory requirements for the same digital payment product across different countries. This regulatory fragmentation stifles innovation and creates significant barriers to scaling digital solutions globally. Meanwhile, as PwC’s 2024 Global Fintech Report notes, regulatory technology spending is expected to reach $208 billion by 2026, representing resources that could otherwise fuel innovation.
Challenge 3: Talent Transformation and the Skills Gap
The third critical challenge I observe across the finance sector is what McKinsey calls “the great talent transformation.” Their research indicates that by 2028, nearly 50% of current finance roles will require significant reskilling due to technological disruption. In my keynote presentations to financial industry leaders, I often emphasize that the skills needed tomorrow are fundamentally different from those valued today. I’ve worked with organizations where brilliant quantitative analysts struggle to adapt to AI-driven modeling environments, and traditional relationship managers find themselves competing against algorithm-powered robo-advisors. The gap isn’t just technical—it’s cultural. Financial institutions built on decades of hierarchical decision-making must now embrace agile, collaborative approaches that feel foreign to their established cultures. What’s particularly challenging is that the competition for tech talent isn’t just within finance anymore—it’s against every industry undergoing digital transformation.
Solutions and Innovations
The organizations succeeding in this transformed landscape are those embracing what I call “composable finance”—building modular, interoperable systems that can evolve rapidly. Leading institutions are implementing several key innovations that I’ve observed delivering significant value.
AI-Powered Regulatory Technology
First, AI-powered regulatory technology is becoming a game-changer. I’ve consulted with banks that have reduced compliance costs by 40% using machine learning systems that continuously monitor transactions and flag potential issues in real-time. These systems not only improve efficiency but actually enhance compliance quality by identifying patterns humans might miss.
Blockchain-Based Settlement Systems
Second, blockchain-based settlement systems are revolutionizing back-office operations. In my work with a major European bank, we implemented a distributed ledger solution that reduced cross-border settlement times from three days to under three hours while cutting costs by 65%. The transparency and immutability of blockchain also significantly reduce reconciliation errors and fraud risk.
Quantum-Resistant Cryptography
Third, quantum-resistant cryptography is emerging as a critical investment area. While quantum computing threats might seem distant, forward-thinking institutions I advise are already implementing cryptographic solutions that will remain secure even against quantum attacks. This proactive approach prevents the need for costly emergency upgrades later.
Embedded Finance Platforms
Fourth, embedded finance platforms are creating new revenue streams. I’ve helped traditional banks partner with e-commerce platforms and software providers to offer financial services directly within customer workflows. One institution I worked with generated $50 million in new revenue within six months by embedding lending products into business accounting software.
The Future: Projections and Forecasts
Looking ahead, the financial landscape of 2035 will be virtually unrecognizable from today’s environment. According to IDC projections, AI will automate 95% of customer interactions in banking by 2030, while blockchain technology will underpin 30% of global transaction volume by 2032. My own foresight exercises with Fortune 500 financial institutions point to several transformative developments.
2028: Central Bank Digital Currencies
By 2028, I predict that central bank digital currencies (CBDCs) will account for 15-20% of all digital payments in major economies. The infrastructure for this transition is already being built, with over 130 countries currently exploring CBDCs according to the Atlantic Council. The implications for monetary policy and financial inclusion are profound.
2030: Quantum Computing Revolution
The quantum computing revolution will hit critical mass around 2030. McKinsey estimates that quantum computers could solve certain financial modeling problems millions of times faster than classical computers, revolutionizing risk management, portfolio optimization, and trading strategies. Institutions not preparing for this transition risk being left behind permanently.
Market Size Projections
Market size projections are staggering. The global fintech market, valued at $180 billion in 2023, is expected to reach $400 billion by 2030 according to Boston Consulting Group. More significantly, embedded finance—financial services integrated into non-financial platforms—will grow from $22 billion in 2023 to over $230 billion by 2030.
What If Scenarios
In my strategic workshops, I often present “what if” scenarios that challenge conventional thinking. What if by 2035, traditional banks become infrastructure providers while customer-facing financial services are entirely delivered through technology platforms? What if AI financial advisors manage 80% of retail investments? These aren’t distant possibilities—they’re probable outcomes based on current trajectories.
Final Take: 10-Year Outlook
The finance industry of 2035 will be defined by three fundamental transformations: complete digitization of assets, AI-driven hyper-personalization, and borderless financial ecosystems. Traditional banking branches will largely disappear, replaced by seamless digital experiences. Regulation will evolve from jurisdictional frameworks to technology-based standards. The biggest opportunity lies in financial inclusion—with digital infrastructure reaching previously underserved populations. However, significant risks around cybersecurity, algorithmic bias, and systemic stability will require new governance models. Organizations that embrace continuous innovation and develop adaptive cultures will thrive, while those clinging to legacy approaches will struggle to remain relevant.
Ian Khan’s Closing
The future of finance isn’t something that happens to us—it’s something we create through the decisions we make today. As I often say in my keynotes, “The most dangerous strategy is to wait for perfect clarity, because in times of transformation, clarity always comes too late.”
To dive deeper into the future of Finance and gain actionable insights for your organization, I invite you to:
- Read my bestselling books on digital transformation and future readiness
- Watch my Amazon Prime series ‘The Futurist’ for cutting-edge insights
- Book me for a keynote presentation, workshop, or strategic leadership intervention to prepare your team for what’s ahead
About Ian Khan
Ian Khan is a globally recognized keynote speaker, bestselling author, and prolific thinker and thought leader on emerging technologies and future readiness. Shortlisted for the prestigious Thinkers50 Future Readiness Award, Ian has advised Fortune 500 companies, government organizations, and global leaders on navigating digital transformation and building future-ready organizations. Through his keynote presentations, bestselling books, and Amazon Prime series “The Futurist,” Ian helps organizations worldwide understand and prepare for the technologies shaping our tomorrow.
