Will financial advice be delivered primarily through Netflix-like subscription platforms?

By

A report just released by McKinsey, On the cusp of change: North American wealth management in 2030, offers some interesting perspectives.

The ideas presented in the report include the rise of “fit-nance” tracking of holistic advice, financial advisors focusing on life coaching, and ubiquitous user ratings of advisors.

One of the key concepts in the report is that financial advice will be substantially provided over Netflix-like subscription platforms:
Read more

Why a future of efficient capital markets matters and how we’ll get there

By

I recently gave a keynote in Dubai at The World in the Future conference, organised by the Ministry of Finance as part of the Dubai government’s Innovation Month. The event timeframe was 30 years in the future, showing an appetite for foresight very unusual from governments.

The event kickoff brought together three featured speakers – physicist and futurist Michio Kaku, trend watcher Daniel Levine, and myself – who each delivered a keynote and then joined a panel discussion.
Read more

Perverse market theory and the perversion of crypto-currencies

By

I recently tweeted:

I was later asked for more information about perverse market theory, and after digging around I have drawn a blank. The term “perverse market” is usually used to refer to unintended or unanticipated market responses, but that is a different meaning from the one I referred to here.

Perhaps my memory fails me on the concept’s name (let me know if you can instruct me on this!), but the idea really struck me when I heard about it in my early career working in financial markets.

Do markets want to hurt people?

The idea of perverse market theory essentially anthropomorphizes the markets, attributing it intent, not dissimilarly to how Kevin Kelly describes directional behaviors in the development of technology in his book What Technology Wants.
Read more

The potential and dangers of the ‘autonomous economy’ where machines transact with machines

By

Australia’s largest bank Commonwealth Bank has just released a very interesting white paper Welcome to the machine-to-machine economy, anticipating machines engaging in financial transactions with other machines or parties, for example hiring and paying for their own maintenance workers. This would require them to have their own bank accounts and payment systems.


Source: Commonwealth Bank
Read more

The Global Economic Policy Uncertainty index is at an all-time high: the implications

By

A group of top economists has created an Economic Policy Uncertainty Index for 17 countries, using media reporting and economic forecasts to show how much uncertainty there is economic policy.

The Global Economic Policy Uncertainty Index is currently the highest it has been since the beginning of the period analyzed starting at the end of 1996.
global-epu
Read more

Video: Why professional services leaders need to think about the future

By

Leading up to the Client and Firms of the Future: How to Compete conference in Sydney on March 11 (which I discussed in a previous blog post), my co-organiser George Beaton and I have recorded a brief video to set the scene.

In the video we begin by addressing the question: Why do professional services leaders need to think about the future? and go on to discuss what to expect at the conference.

Points we make in the video include:
Read more

The focus of big data should be creating value FOR customers

By

Big Data is one of the hottest trends at the moment, as shown in this Google Trends chart below.

However much of the big data discussion is about how to market better to customers, gathering data ABOUT them so companies can sell more to them.

This seems to me to be the wrong way to think about it. Big data should be used to CREATE VALUE FOR CUSTOMERS. From that good things will flow to everyone, including of course attracting the most customers.
Read more

The new layer of the economy enabled by M2M payments in the Internet of Things

By

Last week I gave a keynote on The Future of Banking to a group of the most senior risk leaders in a major bank, sharing some provocative ideas on how the banking landscape may change in the years to come.

One of the ideas I shared briefly was on how micro-payments between connected devices could enable an entirely new layer of the economy.
Read more

Civic crowdfunding and the future of government and taxation

By

Crowdfunding is central to my interests in understanding the future. My background in capital markets and long-standing perspective of the living networks has made it a natural space for me, in looking at new ways our collective financial resources can yield the greatest economic and social benefit.

I was recently named one of the top 30 influential thought leaders in crowdfunding in the world (of which there are only 2 outside the US). I think it’s fair to say that’s an exaggeration of my prominence, however as I am increasingly focusing on the future of crowdfunding I hope the insights and perspectives I am currently developing will have a significant reach.

One of the most obvious ways in which crowdfunding can have a far broader impact than it does today is in playing a role alongside government, by allocating funds to benefit citizens. The “civic crowdfunding” space, focused on funding local community projects such parks, community centers, festivals, and education, has thrived, with platforms such as Spacehive and Neighborly doing well, and strong enthusiasm from cities such as Bristol.
Read more

The future of credit unions is community

By

Two weeks ago I gave the closing keynote at the Boards of Directors and Supervisory Committees Conference of the U.S. National Association of Federal Credit Unions in the beautiful Hawaiian island of Maui, on the topic of Profiting From Technology Trends.

The credit union sector in the U.S outperformed commercial banks after the financial crisis according to the very interesting ILO study Resilience in a downturn: The power of financial cooperatives, moving from 42.8% to 45.0% market penetration to a total over $1 trillion in assets, while in the same post-GFC period credit unions increased their market share in most other regions in the world.
Read more