Finance 2.0: How We Will Build The Future of Finance – Part 1

This is the part 1 of the 2 part series, for part 2 click here.

In 2004 we witnessed the shift towards the ‘Web 2.0’. Mentality and assumptions of web developers have shifted from ‘everyone has very limited internet connectivity and limited browsers’ to ‘lots of people have broadband and modern browsers now’. This meant to techniques could be applied to start creating stuff we never had before. This lead to the webapp era. 2016 was arguably the start of ‘Mobile 2.0’ era. Our mindset is shifting from ‘people don’t have good mobile internet and limited smartphone penetration’ to ‘there are a billion people with high-end smartphones now constantly connected to the internet’.

Banking system is one of the underlying core systems of our society and it has always followed the evolution in our lifestyle, even though lagging behind. Web 2.0 brought limited banking capabilities online. Mobile era brought it to our smartphones, often leaving much to be desired but the capability was there. A perfect storm of increased smartphone penetration, big data, blockchain and fintech have put is on the doorstep of Finance 2.0, do we dare to enter?

finance 2.0 doorstep

The year 2017 is the year where our financial system will start to change noticeably for a mainstream user, not just the early adopters that played with P2P loans, blockchain or digital banking. A new set of startups are maturing and reaching the critical mass where they will start reaching everyday users. Here are the assumptions that the dawn of Finance 2.0 brings:

  • Past financial performance (credit check) is not the best metric to reflect likelihood of future repayment; new models are developed
  • Banks are open to collaborate and have changed from walled gardens to bustling bazaars
  • Technology can do a lot of the jobs better, quicker and more reliably than humans can
  • Regulator is not a stop break but an enabler who truly wants to encourage innovation, transparency and competition
  • Customer are willing to share their personal data, and it is easy to do and there are vast amounts of data to create personalised models
  • Settlement times and transaction become so negligent that we can power a network of instant microtransactions


Finance system is one of the underlying foundation of our civilisation, without finance trade would not be possible and without trade we couldn’t specialise in any of our activities – we would still have to produce all our food, clothes, shelter and, even our iphones, ourselves 🙂

In part 2 I discuss each of the assumptions in more detail and how will they change our day to day life.

Also published on Medium.

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I'm a #26 Global FinTech influencer. An Economist by profession, I have worked on both sides of the table - tech startups and global financial organisations. I love football, technology, travelling and photography.