If you thought about the future as a child, you no doubt imagined images from science fiction movies: flying cars, friendships with aliens, and holographic assistants to help you with everyday tasks. This latest futuristic image is even closer than you think. With the rapid development of new, emerging technologies, there is no longer any doubt: in 2035, the world will look completely different. What does this mean for the financial sector and banking as we practice it today?

1. Hyper-personalized services with quantum computing

Technologies such as quantum computing and machine learning make it possible to adapt financial services to individual needs in real time. With these technologies, banks and other financial service providers are able to offer services that are more personalized than ever. Consider applying for a loan with just the touch of a button, without complex and lengthy procedures. Or take it a step further: the chatbot in the bank is replaced by a hologram that gives advice on your financial situation in real time based on your purchasing behavior.

5. Safer and easier banking thanks to AI

AI will also play a major role in the future of banking. We are increasingly seeing chatbots being used for customer service in financial organizations or AI even automating financial processes. By using quantum technology and generative AI, AI offers even more possibilities. Think of networks where transactions are processed quickly and transparently thanks to smart contracts. AI continuously monitors risks and intervenes quickly when necessary. There are also advanced systems that detect fraud using biometric security and quantum pattern recognition. This makes banks better protected against all types of fraud and customers can bank more safely.

3. Cash flows are changing

The term cryptocurrency raised many questions ten years ago, but has now become a household name. In fact, cryptocurrencies are expected to radically change the financial world by 2035. Blockchain networks will change the way we conduct financial transactions. Traditional intermediaries will become obsolete, giving people instant access to crypto assets and making peer-to-peer transactions the norm. This will be made possible by the integration of leading financial institutions.

By 2035, banks will be able to offer their customers regulated stablecoins that are fully backed by currencies and government bonds. This will allow customers to transfer money around the world 24/7, with no additional costs or delays. This means customers can instantly exchange currencies while traveling or split bills between different currencies in real time.

In addition, banks will also allow their customers to tokenize and trade assets such as real estate, precious metals and intellectual property. These will be recognized decentralized exchanges connected to the traditional financial system. Peer-to-peer lending will be possible through open lending platforms that use cryptocurrencies as collateral. Interest rates will be determined based on supply and demand using algorithms.

4. Digital ecosystems integrate finance

As digital interactions such as messaging and online shopping are tracked behind the scenes by banks and fintech companies, payments will become even easier in the future. In the future, digital interactions will merge seamlessly with financial functions of banks and fintech companies.

For example, let’s say you shop online but don’t have enough money to pay for your weekly groceries. With the help of your bank, you can immediately apply for a microloan and get immediate approval to pay for your purchase.

5. Biometrics makes banking transactions invisible

Biometric authentication such as fingerprints, facial recognition and iris scans will be the standard by 2035. This will put an end to confusing documents with passwords and post-its with PIN codes. Your biological identity is “the key”. This not only makes paying more convenient, but also makes banking much more secure. Who knows, you may soon be able to access your account directly using your unique voice by simply speaking to your smartphone or laptop. Or you may soon be able to pay for your purchases by simply glancing at the payment screen.

The road to 2035

It is clear that technology will play an increasingly important role in the world of finance. However, the success of these applications depends on how banks and financial institutions deal with this technology. Companies that do not act now risk being overtaken by the (faster) fintechs. And organizations that dare to invest in new technologies will only benefit in the future.

This is a contribution by John Da Gama-Rose, Head of Banking & Financial Services for Global Emerging Markets at Cognizant