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 seismic shift in how we interact with money. In my work with global financial institutions, I’ve witnessed firsthand the tectonic plates of finance shifting beneath our feet. What we’re experiencing isn’t just evolution—it’s a complete reimagining of what finance means, how it operates, and who controls it. The traditional pillars of banking, investment, and currency are being dismantled and rebuilt with technologies that were science fiction just a decade ago. As a futurist who has advised Fortune 500 financial institutions, I see this transformation accelerating at a pace that’s leaving many organizations struggling to keep up. The finance industry stands at a critical inflection point where the decisions made today will determine which organizations thrive and which become footnotes in financial history.
Main Content: Top Three Business Challenges
Challenge 1: Legacy Infrastructure and Digital Transformation Paralysis
The single biggest obstacle I encounter in my consulting work with major banks is what I call “digital transformation paralysis.” According to Accenture’s 2024 banking survey, 67% of financial institutions report being hampered by legacy systems that cannot integrate with modern technologies. I’ve walked through the server rooms of century-old banks where mainframes from the 1980s still process transactions that could be handled more efficiently by a smartphone app. The challenge isn’t just technical—it’s cultural. As Harvard Business Review notes in their analysis of digital transformation failures, “The greatest barrier to financial innovation isn’t technology itself, but the organizational inertia that resists it.” I’ve seen brilliant fintech solutions fail because the existing organizational structure couldn’t absorb the change. The real cost isn’t just in maintaining outdated systems, but in the missed opportunities and competitive disadvantages that accumulate daily.
Challenge 2: Regulatory Complexity in a Borderless Digital Economy
In my strategic foresight sessions with financial regulators and banking executives, the regulatory challenge emerges as increasingly complex. Deloitte’s 2024 financial services outlook highlights that global financial institutions now navigate an average of 200 regulatory changes daily across different jurisdictions. The rise of decentralized finance and digital assets has created regulatory gray areas that traditional frameworks weren’t designed to address. I recently consulted with a multinational bank that spent over $3 billion annually on compliance—money that could have been invested in innovation. The fundamental tension lies in balancing security and innovation. As PwC’s Global CEO Survey reveals, 58% of financial services CEOs see regulatory uncertainty as the biggest threat to their growth strategies. The challenge isn’t just compliance—it’s anticipating how regulations will evolve around technologies that don’t yet exist.
Challenge 3: Cybersecurity in an Increasingly Vulnerable Ecosystem
The third challenge keeps every financial executive I work with awake at night. According to IBM’s 2024 Cost of a Data Breach Report, the financial sector experiences the highest average cost of data breaches at $5.9 million per incident. What I find most concerning isn’t just the increasing frequency of attacks, but the sophistication. In my discussions with cybersecurity experts at global banks, we’re no longer talking about individual hackers but state-sponsored attacks targeting financial infrastructure. Gartner predicts that by 2026, 60% of financial institutions will face a critical security incident related to their digital transformation initiatives. The attack surface has expanded exponentially with cloud adoption, mobile banking, and IoT devices. The challenge extends beyond protecting data to maintaining trust—the fundamental currency of finance.
Solutions and Innovations
The organizations succeeding in this new landscape are those embracing what I call “architected innovation”—building future-ready systems with intentional design. Here are the solutions I see delivering the most impact:
AI-Powered Regulatory Technology (RegTech)
First, AI-powered regulatory technology (RegTech) is transforming compliance from a cost center to a strategic advantage. I’ve worked with institutions implementing machine learning systems that can interpret and adapt to regulatory changes in real-time, reducing compliance costs by up to 40% while improving accuracy. These systems don’t just follow rules—they anticipate them.
Blockchain and Distributed Ledger Technology
Second, blockchain and distributed ledger technology are creating unprecedented transparency and efficiency. In my consulting with cross-border payment providers, I’ve seen blockchain solutions reduce settlement times from days to seconds while cutting costs by up to 80%. The real innovation isn’t just in cryptocurrency but in the underlying infrastructure that enables secure, transparent transactions without traditional intermediaries.
Quantum-Resistant Cryptography
Third, quantum-resistant cryptography represents the next frontier in financial security. While quantum computing threatens current encryption standards, forward-thinking institutions are already implementing quantum-safe algorithms. I’m advising several central banks on developing cryptographic systems that will remain secure even against quantum attacks expected within the next decade.
Embedded Finance
Fourth, embedded finance is creating new revenue streams and customer touchpoints. According to McKinsey, embedded finance could generate over $230 billion in revenue by 2025 by integrating financial services directly into non-financial platforms. I’ve helped traditional banks develop strategies to participate in this ecosystem rather than being displaced by it.
The Future: Projections and Forecasts
Looking ahead to 2035, the financial landscape will be virtually unrecognizable from today. IDC forecasts that global spending on digital transformation in banking will reach $1.3 trillion by 2030, driving fundamental changes in how financial services are delivered and consumed.
Central Bank Digital Currencies (2028)
By 2028, I predict that central bank digital currencies (CBDCs) will become mainstream, with over 80% of G20 countries implementing their own digital currencies. The International Monetary Fund projects that CBDCs could reduce cross-border transaction costs by up to 90% while increasing financial inclusion for billions of unbanked individuals.
Quantum Computing Transformation (2030-2035)
The real transformation will occur between 2030-2035, when quantum computing achieves commercial viability. Boston Consulting Group estimates that quantum computing could create up to $850 billion in annual value for the financial services industry alone by 2040, primarily through advanced risk modeling and portfolio optimization that’s impossible with classical computers.
AI and Decentralized Finance Scenarios
In my foresight exercises with financial leaders, we explore scenarios where:
- AI agents autonomously manage 60% of investment decisions
- Personalized financial products adapt in real-time to life changes
- Decentralized autonomous organizations (DAOs) challenge traditional corporate structures
The market size for AI in fintech alone is projected to reach $61 billion by 2031 according to Allied Market Research, but this likely underestimates the secondary effects on adjacent industries.
Final Take: 10-Year Outlook
The next decade will witness the greatest transformation in finance since the invention of double-entry bookkeeping. Traditional banking branches will largely disappear, replaced by immersive digital experiences and AI-powered financial advisors. Currency will become predominantly digital, with cash representing less than 5% of transactions in developed economies. The most significant shift will be psychological—from ownership to access, from accumulation to utilization, from individual wealth to ecosystem value. Organizations that thrive will be those that embrace platform models, prioritize cybersecurity as a core competency, and develop the organizational agility to navigate continuous disruption. The risk isn’t technological obsolescence but cultural inertia.
Ian Khan’s Closing
In my two decades of studying technological evolution, I’ve never witnessed an industry transformation as profound as what’s happening in finance. We’re not just building better banks—we’re reimagining the very concept of value exchange in human society. The organizations that will lead in 2035 aren’t necessarily the giants of today, but those with the vision to see around corners and the courage to build what others can’t yet imagine.
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.
