Name: Four disruptive trends changing the future of fintech
Uploaded: 2022-10-18T16:11:12.541Z
Duration: 582.7
Description: Trends disrupt the fintech sector every day, but which ones are temporary and which ones will have a lasting impact on the industry for years to come? Ian Khan, Keynote Speaker and Author of Metaverse for Dummies, and Ron Shevlin, Chief Research Officer, share their predictions on the top four disruptive trends they think will impact our future.

Ian and Ron teaser.mp4

Top_4_Future_Disruptive_Trends_TL.vtt

English

{{00:00:00}}
The world moves really slow, right?

{{00:00:02}}
That's the truth.

{{00:00:03}}
It takes time for
systems to be propagated.

{{00:00:06}}
It takes time for
technology to be adopted.

{{00:00:09}}
It has to follow an adoption
curve of maturity, of acceptance.

{{00:00:20}}
Hi, I'm Ian Khan and I'm the
author of the upcoming book,

{{00:00:23}}
The Metaverse for Dummies.

{{00:00:25}}
Hi, I'm Ron Chevlin, Chief
Research Officer at Cornerstone

{{00:00:28}}
Advisors, and author of the
FinTech Snark Tank blog on Forbes.

{{00:00:31}}
Disruption simply is when standard
things do not remain standard.

{{00:00:36}}
It's when something new comes into
your industry, whether you're in

{{00:00:40}}
FinTech or manufacturing or any
other industry, something new comes

{{00:00:44}}
in and knocks at the doors of your
industry, at the standard practices

{{00:00:47}}
that you have in your industry
and says, I'm gonna change this.

{{00:01:01}}
Blockchain technology.

{{00:01:02}}
Blockchain has been out there for
the last 12, 15 years, approximately.

{{00:01:07}}
We've heard a lot about Bitcoin and
cryptocurrencies and so on, but all

{{00:01:11}}
these things, cryptocurrencies, they're
just an offshoot off blockchain.

{{00:01:15}}
There are many incredible things
that blockchain offers when we talk

{{00:01:19}}
about decentralization, we talk about
democratization, and these might

{{00:01:25}}
seem big words, but it's all about
creating fair value, creating equity,

{{00:01:30}}
and not taking out the middle person
or the middle company, but creating

{{00:01:34}}
systems that are more efficient.

{{00:01:36}}
I see blockchain technology creating
the next foundation of industries, not

{{00:01:42}}
just in finance or FinTech, but every
other industry can benefit because

{{00:01:46}}
at the end, every industry, every
company has similar processes, similar

{{00:01:50}}
things happening at a business level.

{{00:01:52}}
The intersection of blockchain and
cryptocurrency, and how it's creating

{{00:01:56}}
this trend that many people call
Web3, or a decentralized finance

{{00:02:01}}
often shortened down to DeFi.

{{00:02:04}}
This is creating a whole new set of
opportunities in financial services,

{{00:02:09}}
to kind of take away what have
traditionally been the intermediaries

{{00:02:14}}
-- companies who have been sitting in
the middle of transactions, creating

{{00:02:18}}
contractual relationships between
parties -- and the blockchain and

{{00:02:23}}
cryptocurrencies are helping to create
a new environment that changes the

{{00:02:28}}
nature and actually builds trust into
the technology, versus relying on

{{00:02:33}}
trust from the provider perspective.

{{00:02:43}}
AI comes in many different forms.

{{00:02:45}}
AI could be collecting data,
gathering data, analyzing data.

{{00:02:49}}
It could be in uh, voice recognition,
it could be in image recognition

{{00:02:54}}
-- there are at least a billion
uses of artificial intelligence.

{{00:02:58}}
AI is not about taking a person out
of the equation, or impacting jobs

{{00:03:03}}
of people, or any of those things.

{{00:03:05}}
Think about efficiency.

{{00:03:07}}
As a business, you want efficiency.

{{00:03:09}}
As an organization, you want
efficiency, and AI does all of that.

{{00:03:14}}
So we're actually seeing more of
a maturity and platforming of AI

{{00:03:20}}
as technologies like the Internet
have enabled AI to grow and expand,

{{00:03:26}}
and very importantly, the data.

{{00:03:28}}
It's the data that's important to
AI, both in terms of what goes in

{{00:03:32}}
and the data that AI helps to create.

{{00:03:35}}
And the ability of the Internet
and technologies like that

{{00:03:38}}
have helped to scale AI.

{{00:03:41}}
So, while I would argue that there's
still a lot of hype in the AI world,

{{00:03:47}}
I don't think AI is gonna solve
the problem of reading people's

{{00:03:50}}
minds and figuring out exactly
what the next product they want is.

{{00:03:54}}
But the AI is, uh, AI tools and
technologies are really going to help

{{00:03:59}}
improve things like trend analysis for
things like fraud and risk management.

{{00:04:05}}
And while marketing may lag a
little bit from that, I think we're

{{00:04:10}}
going to continue to see a lot of
disruption from AI, especially as

{{00:04:16}}
it becomes integrated and integral
into a lot of systems today.

{{00:04:21}}
Which is different because today
a lot of systems are separate

{{00:04:25}}
AI systems, and I think we're
going to see that embedding of AI

{{00:04:28}}
into everyday bank applications.

{{00:04:38}}
Now, Web3 is the
evolution of the Internet.

{{00:04:41}}
We had Web1 when we had the Alta Vistas
and the older websites where you could

{{00:04:46}}
just go and see what is going on.

{{00:04:49}}
Web2 was when we started collaborating
with the Internet and you could

{{00:04:53}}
write an article, you could post
content, and now Web3 is where

{{00:04:57}}
we as creators can be part of the
system that runs the Internet.

{{00:05:02}}
You could monetize your content.

{{00:05:04}}
You could get paid for your content.

{{00:05:06}}
You could select and choose
who can view your personal

{{00:05:09}}
information and use it or not.

{{00:05:12}}
There are many things
that Web3 creates.

{{00:05:21}}
The embedded finance
banking as a finance trend.

{{00:05:24}}
Why is it so disruptive?

{{00:05:26}}
Well, for many people they
think it's a threat to banks

{{00:05:29}}
that non-banks and fintechs are
providing financial services.

{{00:05:34}}
But it's really one of the biggest
opportunities that banks have right

{{00:05:37}}
now because non-financial providers
still need to work with banks to

{{00:05:43}}
provide these types of services.

{{00:05:45}}
But it's really disrupting the
industry because it's a new

{{00:05:48}}
distribution channel for banks.

{{00:05:50}}
It's a new economic model.

{{00:05:52}}
Many bankers don't like the idea
that they would be disintermediated

{{00:05:55}}
from the end consumer, but in many
respects it's a benefit to them.

{{00:06:00}}
It's a lower cost of
customer acquisition.

{{00:06:03}}
It's a better profit margin.

{{00:06:05}}
And they actually don't have
to make the investments in the

{{00:06:08}}
front end technology that they've
had to make in the past that

{{00:06:12}}
has caused so many problems.

{{00:06:14}}
So I would point to banking as a
service, slash embedded finance,

{{00:06:18}}
as one of the big disruptive
trends in the industry right now.

{{00:06:27}}
Today it's 2022.

{{00:06:29}}
We're talking about
the year 2032, right?

{{00:06:33}}
Let's take a minute.

{{00:06:33}}
Let's take, let's think about
10 years before today, right?

{{00:06:36}}
2012.

{{00:06:38}}
Bitcoin was just created, blockchain
technology was in its infancy,

{{00:06:42}}
'cloud' was the big buzzword, or
'analytics' was the big buzzword.

{{00:06:47}}
The problem is that the world
moves really slow, right?

{{00:06:51}}
That's the truth.

{{00:06:52}}
It takes time for
systems to be propagated.

{{00:06:55}}
It takes time for
technology to be adopted.

{{00:06:58}}
It has to follow an adoption
curve of maturity, of acceptance.

{{00:07:02}}
You've got your early adopters,
you've got your majority.

{{00:07:05}}
But you've got your laggards
and people who are still trying

{{00:07:08}}
to figure out cloud technology.

{{00:07:10}}
You still have people who don't
know how to use a personal

{{00:07:13}}
computer to its full capabilities.

{{00:07:14}}
And so that's kind of the challenge.

{{00:07:16}}
It's really up to us how much of
these technologies will be adopted.

{{00:07:21}}
Given how we're doing things right
now, I hope we're at a better point,

{{00:07:25}}
but I'm- I actually do think that
these technologies will be at a

{{00:07:29}}
much better maturity, and not just
because they're buzzworthy, because

{{00:07:34}}
they actually create more value.

{{00:07:36}}
Because the value that AI and
blockchain and Web3 can potentially

{{00:07:40}}
create in different industries
will be real, and by the time

{{00:07:43}}
it's another 10 years, 2032, these
technologies would have borne fruit.

{{00:07:49}}
So I'm really hopeful that
these technologies are not just

{{00:07:52}}
trends, but have actual value
and are actually creating change.

{{00:07:56}}
I am going to put my stake in
the ground and tell you, 10 years

{{00:07:59}}
from now, we're still gonna be
wrestling with a lot of this.

{{00:08:02}}
You know, it's a typical situation
as we've seen a lot of emerging

{{00:08:05}}
technologies, is that they get
overhyped in the short term and

{{00:08:09}}
everybody seems to think, "Well, you
know, in five years from now it's going

{{00:08:12}}
to be very different" and five years
down the line isn't very different.

{{00:08:16}}
You go back to 1995 when the internet
was really starting to become a reality

{{00:08:21}}
and popular, people would think "In
five years from now, banks will be

{{00:08:26}}
out of business, all the dot coms".

{{00:08:28}}
Well, 25 and plus years later,
that's certainly not the case.

{{00:08:33}}
But, you know, it took new
developments like the iPhone,

{{00:08:38}}
the smartphone in 2007, to really
ramp up the adoption and impact.

{{00:08:45}}
And then there's the external
factors like the 2008 financial

{{00:08:49}}
crisis, which really helped to
spur a lot of FinTech development,

{{00:08:52}}
the 2020 pandemic, which really
accelerated a lot of digital adoption.

{{00:08:57}}
So, these are not trends that are-
the trends around embedded finance,

{{00:09:03}}
the trends around, AI and the
trends around blockchain, are not

{{00:09:09}}
things that are going to go away
in three to five years, because

{{00:09:12}}
it's really going to take 10, 15,
and maybe even 20 years, for the

{{00:09:18}}
impact to really hit and change.

{{00:09:20}}
There's always resistance to change,
and a lot of things that are, kind

{{00:09:24}}
of, baked into the systems today that
just don't get changed overnight.

{{00:09:28}}
So I will put my stake in the
ground and say, 10 years from

{{00:09:32}}
now, these are still going to
be developing disruptive trends.

It takes time for
systems to be propagated.

It takes time for
technology to be adopted.

It has to follow an adoption
curve of maturity, of acceptance.

Hi, I'm Ian Khan and I'm the
author of the upcoming book,

Hi, I'm Ron Chevlin, Chief
Research Officer at Cornerstone

Advisors, and author of the
FinTech Snark Tank blog on Forbes.

Disruption simply is when standard
things do not remain standard.

It's when something new comes into
your industry, whether you're in

FinTech or manufacturing or any
other industry, something new comes

in and knocks at the doors of your
industry, at the standard practices

that you have in your industry
and says, I'm gonna change this.

Blockchain has been out there for
the last 12, 15 years, approximately.

We've heard a lot about Bitcoin and
cryptocurrencies and so on, but all

these things, cryptocurrencies, they're
just an offshoot off blockchain.

There are many incredible things
that blockchain offers when we talk

about decentralization, we talk about
democratization, and these might

seem big words, but it's all about
creating fair value, creating equity,

and not taking out the middle person
or the middle company, but creating

I see blockchain technology creating
the next foundation of industries, not

just in finance or FinTech, but every
other industry can benefit because

at the end, every industry, every
company has similar processes, similar

The intersection of blockchain and
cryptocurrency, and how it's creating

this trend that many people call
Web3, or a decentralized finance

This is creating a whole new set of
opportunities in financial services,

to kind of take away what have
traditionally been the intermediaries

-- companies who have been sitting in
the middle of transactions, creating

contractual relationships between
parties -- and the blockchain and

cryptocurrencies are helping to create
a new environment that changes the

nature and actually builds trust into
the technology, versus relying on

AI could be collecting data,
gathering data, analyzing data.

It could be in uh, voice recognition,
it could be in image recognition

-- there are at least a billion
uses of artificial intelligence.

AI is not about taking a person out
of the equation, or impacting jobs

As an organization, you want
efficiency, and AI does all of that.

So we're actually seeing more of
a maturity and platforming of AI

as technologies like the Internet
have enabled AI to grow and expand,

It's the data that's important to
AI, both in terms of what goes in

And the ability of the Internet
and technologies like that

So, while I would argue that there's
still a lot of hype in the AI world,

I don't think AI is gonna solve
the problem of reading people's

minds and figuring out exactly
what the next product they want is.

But the AI is, uh, AI tools and
technologies are really going to help

improve things like trend analysis for
things like fraud and risk management.

And while marketing may lag a
little bit from that, I think we're

going to continue to see a lot of
disruption from AI, especially as

it becomes integrated and integral
into a lot of systems today.

Which is different because today
a lot of systems are separate

AI systems, and I think we're
going to see that embedding of AI

Now, Web3 is the
evolution of the Internet.

We had Web1 when we had the Alta Vistas
and the older websites where you could

Web2 was when we started collaborating
with the Internet and you could

write an article, you could post
content, and now Web3 is where

we as creators can be part of the
system that runs the Internet.

You could select and choose
who can view your personal

The embedded finance
banking as a finance trend.

Well, for many people they
think it's a threat to banks

that non-banks and fintechs are
providing financial services.

But it's really one of the biggest
opportunities that banks have right

now because non-financial providers
still need to work with banks to

But it's really disrupting the
industry because it's a new

Many bankers don't like the idea
that they would be disintermediated

from the end consumer, but in many
respects it's a benefit to them.

It's a lower cost of
customer acquisition.

And they actually don't have
to make the investments in the

front end technology that they've
had to make in the past that

So I would point to banking as a
service, slash embedded finance,

as one of the big disruptive
trends in the industry right now.

We're talking about
the year 2032, right?

Let's take, let's think about
10 years before today, right?

Bitcoin was just created, blockchain
technology was in its infancy,

Fintech Disruption

Expert Insight

Trends disrupt the fintech sector every day, but which ones are temporary and which ones will have a lasting impact on the industry for years to come?
Ian Khan, Keynote Speaker and Author of Metaverse for Dummies, and Ron Shevlin, Chief Research Officer, share their predictions on the top four disruptive trends they think will impact our future. 

Investment

Fintech

Blockchain

Embedded finance

Web 3.0

Disruption

Trends

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Ian Khan

Future Readiness Pioneer & Author

Ron Shevlin

Chief Research Officer

Khan defines disruption and explains how innovation alters the way that consumers, industries and businesses operate.

What is disruption?

Shevlin and Khan explore how blockchain helps to create high efficiency systems, and thus boosting trust in FinTechs.

Khan and Shevlin detail the array of AI functions available and how AI integration can impact people's jobs.

Khan discusses the evolution of the Internet, monetising content, and the opportunities provided through Web3.

Web3

Shevlin explains how the financial services provided by FinTech isn't a threat to banks, but an opportunity to work together in a new economic model.

Embedded Finance

Khan and Shevlin talk about their hopes for the future of current trends disrupting the FinTech industry.