20 August 2021

The future of finance – what will the finance sector look like in 2025?

Written By Kene Partners in R&D

The future of finance – what will the finance sector look like in 2025?

Every day, we hear about new developments in the fintech world. However, the wider financial sector is also developing a new identity as we prepare to move into the next decade.

Technology has been redefining the way people and businesses bank. This continued digital revolution is giving rise to machine learning, artificial intelligence (AI), cloud computing and decentralised platforms such as blockchain that are on a one-way ticket to disrupting the global financial services sector in the coming years.

Blockchain: The new ‘back office’ for financial services?

Once viewed purely as the foundation for Bitcoin, the financial industry has come to understand its potential in many other areas. This decentralised distributed virtual ledger which operates across tens of thousands of machines sees every single transaction recorded with unprecedented precision by the blockchain network.

It’s the most transparent payment system the world has ever seen. It will soon be utilised not only to transfer cryptocurrencies but many other assets. These will include commodities such as equities and bonds.

High street banks, insurers, and various other firms in financial services are investing millions in blockchain technology. They hope that by providing a faster, tamper-proof payment and exchange infrastructure – removing the need for expensive middlemen – the integrity and trust in service providers will rise immeasurably as a result.

AI: More efficient decision-makers and trend-spotters

It’s of little surprise that AI ranks highly as a likely addition to the financial sector by 2025. Machine learning has already made it possible for humans to create automated algorithms. These make accurate predictions, spot market trends and take necessary actions. Algorithmic trading bots have been in action for many years in the stock markets. However, AI is also increasingly being used as a sophisticated deterrent for money laundering and fraudulent behaviour. It may soon also be used to monitor online customers behaviour, helping to up-sell financial products.

Chatbots: 24/7 virtual agents offering dedicated service support

In the infancy of chatbots, many consumers were sceptical about why businesses were stooping so low. It seemed like an under-hand attempt to slash overheads but in reality, it has been a revelation for the financial industry and many others. The ability to source vast amounts of data and provide services and advice off the back of customers’ queries has helped individuals and businesses make more informed choices with their financial products.

In the coming years, we’re likely to see chatbots evolve into highly sophisticated virtual agents. They will potentially be capable of completing both part and full-time advisory roles. There’ll still be front-of-house customer service, but not as we know it.

Cybersecurity will be more necessary than ever before

While this financial era is exciting, it’s important to keep our eye on the ball when it comes to cybersecurity. The bigger the scale of digitisation in banking and financial services, the more windows of opportunity cyber-criminals will have to strike. The fintech industry is already responding and developing tougher cryptography to keep hackers at bay.

Can we help your business with innovation incentives?

Arrange a free consultation with our team of experienced and approachable tax incentive advisors today. At Kene Partners, our mission is to help innovative companies access millions of pounds of government money set aside for funding your innovation. Your business could be next. Book here.

Up Next ...
04 November 2024

Finance apps are in ‘need of improvement’, says a quarter of Brits

A recent survey by UK mobile specialists Apadmi reveals that ...

04 November 2024

Barclays acquires Tesco Bank

Barclays Bank UK PLC has completed the acquisition of Tesco ...

04 November 2024

fundcraft Increases Series A to €11 Million Demonstrating Strong Product-Market Fit

fundcraft has increased its Series A funding to €11 million, ...

01 November 2024

Mollie and Hyvä announce strategic partnership, launching Hyvä Commerce

Mollie, a leading financial service provider, has partnered with Hyvä, ...

More in R&D

Posted By The Community

Claiming R&D tax credits: Pollinate's story

30 November 2021

When engaging us to facilitate their first R&D claim, Pollinate were rewarded with a substantial benefit alongside first-class support.

Written By: Kene Partners

Posted By The Community

Autumn Budget 2021: impact on R&D tax credits

29 October 2021

Rishi Sunak, the Chancellor of the Exchequer, has set out his latest spending plan during the Autumn...

Written By: Kene Partners

Posted By The Community

Claiming R&D tax credits in the finance and insurance sectors

21 September 2021

The ability of companies within this sector to gather and correctly analyse data and predict future trends is what has allowed the UK’s financial services sector to bec...

Written By: Kene Partners

Posted By The Community

What to look for in an R&D adviser: Why not choose the cheapest?

09 June 2021

Remember, what matters most is the adviser’s commitment to the robustness of your claim. You should always check with the adviser to see what’s included in the scope ...

Written By: Kene Partners

There are no Knowledge Bank in this category

There are no Events in this category