Are you prepared for the future of finance? 4 innovation drivers you can't ignore

The finternet is taking shape thanks to technological advances. Image: Getty Images/iStockphoto
Eva Selamlar
Head of Swiss Financial Innovation Desk (FIND), Federal Department of Finance (FDF) of SwitzerlandVénusia Bertin
Community and Events Lead, Swiss Financial Innovation Desk (FIND), Federal Department of Finance (FDF) of Switzerland- Technological innovation is combining to create a new financial ecosystem: the finternet.
- A new report has identified four key trends driving the evolution of this new finance landscape.
- Exploring how they are practically deployed in terms of accessibility, trust and regulation will be key to the finternet's development.
The financial system is undergoing a seismic shift, driven by technological mega-trends that are reshaping its foundations. These changes are explored in the report Pathway 2035 for Financial Innovation: Your Navigator by the Swiss Financial Innovation Desk (FIND). Building on the insights from the Finternet: The Financial System for the Future vision by the Bank for International Settlements (BIS), FIND has identified four critical themes that will shape the financial landscape of tomorrow: artificial intelligence (AI), digital trust, digital assets and quantum-safe technologies.
These interconnected pillars form the backbone of a new financial ecosystem – what we call the finternet – that is faster, safer and more adaptive to global needs. AI in particular will occupy a transcendent role as the catalyst for a more efficient and resilient financial future.
1. AI: the brain of tomorrow's financial system
AI is transforming the financial sector, promising unprecedented efficiency and personalization. Yet its global adoption is defined by distinct regulatory approaches. In the US, innovation takes precedence with limited regulation fostering rapid technological advancement. In contrast, the European Union emphasizes ethics and accountability, while China balances AI development with stringent state control to ensure national security. These diverging paths highlight the need for global collaboration to ensure AI's responsible growth.
High-quality research and development (R&D) in AI is increasingly concentrated in just a few countries. Initiatives like ICAIN (International Computation and AI Network), a Swiss-led collaborative project, exemplify how AI can democratize access to computational resources for sustainable development. By bridging global expertise, ICAIN supports projects aligned with the UN Sustainable Development Goals, showcasing the transformative potential of AI when applied collaboratively.

Open finance and open data also play crucial roles in realizing the vision of the finternet. Standardized APIs enable seamless, interoperable financial and non-financial services, fostering competition and innovation across platforms. Tools like the Global Open Data Tracker highlight the progress of initiatives worldwide, promoting financial inclusion and open collaboration.
AI’s integration into the reshaped financial ecosystem represents a pivotal milestone. This interconnected system not only enhances privacy and security, but also fosters innovation and collaboration, unlocking new opportunities for financial institutions and consumers alike.
2. Digital assets: a new frontier for borderless finance
Digital assets are creating a borderless economy, addressing inefficiencies and enabling 24/7 access to capital. These assets, often based on blockchain and distributed ledger technologies (DLTs), encompass a wide range of applications, from payments to investments and access to services.
The journey began with Bitcoin, whose invention in 2009 – following Satoshi Nakamoto’s 2008 white paper – marked a turning point in digital finance. Today, digital assets include cryptocurrencies, tokenized real-world assets and innovations like stablecoins and central bank digital currencies (CBDCs).

Blockchain technology, with its real-time transparency and atomic composability, underpins these developments. Atomic composability means that a single transaction involves calls to multiple smart contracts, and the transaction goes through only if all of its parts succeed (reducing counter-party risk and freeing up resources at clearing houses). However, fragmentation within the ecosystem remains a challenge. Bridging public and private networks through unified ledger approaches can deliver scalable and secure solutions without sacrificing transparency, neutrality, competitiveness and openness. This infrastructure supports decentralized finance (DeFi), enabling permissionless applications that reimagine traditional financial services.
By creating systems that combine innovation with robust regulatory oversight, the global financial system can leverage digital assets to unlock new opportunities for growth and inclusion.
3. Digital trust: redefining confidence in transactions
Trust is the cornerstone of finance, and in a digital world, it must evolve. Self-sovereign identities (SSIs) (decentralized digital identities that give individuals control over their personal data) and self-custody solutions (systems that enable users to store and manage digital assets without or less dependency on intermediaries) are empowering individuals and organizations to manage their data and assets with confidence and autonomy.
Banks are uniquely positioned to lead this transformation, leveraging their expertise to create secure, trustworthy frameworks for data exchange. Yet, challenges remain: The global cost of cybercrime is projected to rise by 50%, from $9.22 trillion in 2024 to $13.82 trillion by 2028. This highlights the urgent need for holistic digital trust frameworks that address vulnerabilities instead of applying piecemeal solutions.
By adopting digital trust frameworks, financial institutions can reduce friction, enhance customer engagement and foster a new era of trusted transactions. In parallel, developing global standards for secure and user-centric interactions will lay the foundation for a balanced and inclusive ecosystem.
4. Quantum-safe: securing the financial future
Quantum computing is poised to revolutionize computation, offering solutions to problems previously unsolvable. However, it also introduces risks to the encryption methods that protect today’s financial systems.
Quantum computers have the potential to break widely used cryptographic protocols, threatening the security of transactions, data and digital assets. Fully functional (fault-tolerant) quantum computers are expected to become available in the early 2030s according to the National Institute of Standards and Technology (NIST); it is not a question of “if” but “when” quantum computing poses a real threat to our digital communication and financial data . “Harvest now, decrypt later” attacks have likely already started.
To address this, financial institutions are turning to quantum-safe cryptography, including post-quantum cryptography (PQC) and quantum key distribution (QKD). These methods are designed to resist quantum-based attacks and safeguard critical infrastructures.

HSBC’s recent pilot project on quantum-safe cryptography for tokenized gold demonstrates how institutions are preparing for these challenges. Their tests demonstrated that while blockchain and distributed ledger technologies (DLTs) are vulnerable to quantum threats, encryption can be adapted to ensure resilience without overhauling entire systems.
Initiatives like NIST introducing the first post-quantum standards in 2024 mark significant progress with global impact. These developments, alongside international collaboration, are critical to preparing the financial sector for a quantum-powered future.
The convergence of AI, digital trust, digital assets and quantum-safe technologies marks a turning point for global finance. Combining AI with quantum yields productivity gains and energy cost savings. Digital trust is key against deep fakes and fraud of all sorts. These four pillars are deeply interconnected, shaping a future that prioritizes efficiency, security and adaptability.
Within this framework, concepts such as the finternet – the fusion of finance and interconnected digital ecosystems – represents a parallel, entwined pathway offering both opportunities and challenges. Exploring how these elements align in practical applications has been and will be central to this journey.
How is the World Economic Forum improving the global financial system?
As these technologies evolve, they redefine how financial systems operate, emphasizing trust, accessibility and innovation. Collaboration across industries and borders will be crucial to harness their full potential while addressing challenges like cybersecurity and regulatory alignment.
The path to 2035 is both complex and promising. By embracing innovation, fostering partnerships and aligning progress with shared values, the financial sector can unlock a new era of global prosperity and trust, shaping a future that benefits everyone.
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