The future of financial technology – Sean Park

Henry case was to organize a birthday party. It was summer 2036, and he was about 40.

to

for his parents’ generation, which was a milestone. Mid-life. To Henry – a have to call from what they used the millennial generation, was born in 1996 – it was not such a big deal. Apart from an accident, his life expectancy 110-120 Years -. Although the confidence interval was significantly decreased in the past five years, and some began to ask who did the calculations

the algorithms in question

But could see the actuarial algorithms really behind the event horizon of a singularity? Many observers said it could already arrived. Others said it would soon, especially as some of the newer models have the biological “escape velocity” the prediction have been achieved, could be used for people of Henry’s age and wealth. For his children, it seemed a certainty. And the new “immortality” life models were not developed yet proven.

But Henry does not worry too much about it. He left it to the philosophers and scientists, and was happy to leave his IAs – intelligent assistants or agents – worry (or not, he was not sure and did not care) about this and other “unknown unknowns”. The traditional ways of life – based on conventional biological and economic life cycles – had worked well enough, since bursts in the late 2020s in ubiquity, and he was happy to rely on them

.

This included today when he asked his Intelligent Life Wizard, whom he called Leila, to help him to plan a small party for his 40th birthday.

Leila was a third generation ILA. She was one of the first, the functions of IFAs (Intelligent Financial Advisers), Ihas (Intelligent Health consultant), IPAs (Intelligent Personal Assistants) and the (controversial) LMs to integrate (Life Mentors).

had the first real digital agents were from the Cambrian explosion of new businesses and technologies in addition to the universal adoption of platforms and mobile / Distributed Computing emerge in the mid to late 2010s to early 2020s, IFAs and IPAs.

IFAs arose from a confluence – begins in the late 2010s – of a whole new generation of financial services start-ups (collectively, the “FinTech companies” at the time known) and a number of early maturing technologies such as artificial intelligence, machine learning, speech recognition, cryptography, block chains and ultimately quantum computing. Ubiquitous global connectivity and intelligent devices – mobile phones first, then portable and implantable technologies – drove faster, more global, adoption cycles. However it was not until the early to mid 2020er- that legal and geopolitical conditions are really adapted to the new techno-economic paradigm started.

It was in this period of turbulence, the Henry the “workforce” connected, although the term itself was always to be an anachronistic relic, replaced from the industrial age of the 20th century in the process, quite painful, from the economic , institutional and social paradigms of a new information age.

His children, now nine and 12 years old, could not imagine a world without ILAs, and wondered aloud how her father live in such a world had managed.

In these moments, would Henry smile and remember his disbelief that his own parents had grown up in a pre-Internet world without computers and mobile phones.

While incremental had progress toward what became known as IFAs, it was not until 2022 that the term has been generally accepted. The complete integration of dozens of products and technologies on a platform set the industry in motion.

With years of data of millions of customers in combination with fast maturation of machine learning and powerful artificial intelligence, the leading behavioral research incorporated the market engines, companies were finally able to provide continuous, dynamic real-time optimization whole of their customers financial life, open up thousands of specialist applications.

At the time, IFAs were welcomed into the world with wonder, with many older commentators calling the financial equivalent of the introduction of the iPhone.

As we have our financial life before that? Every financial decision – payments, purchases, savings, investment, insurance – has been optimized activated either automatically or with “Bette”, a voice or text intelligent agent, the customer can enter the contextually relevant decisions (and their consequences), based on a continuously recalculated projection future financial results.

In addition, taking into account a customer’s current and historical financial situation and the behavior and millions of financial and economic data streams, Bette on expected cash flows and investment income of each customer tailored hundreds of forward-looking scenarios involved. For the first time, the resources and expertise of the most advanced family offices worldwide were in reach of every man and woman.

However, from 2036, when Henry his party was the organization that seemed pretty rudimentary. The first generation IFAs had business finance as a separate element in the lives of people while now finance and financial management, were things that “just happen” – mostly invisible -. Deep IAs helping people to manage all aspects of their lives

In fact, the more conservative elements of the older generation X / Y often objected, find it alarming that people and in our societies had become dependent on these funds and have always been ignorant of the “machinery of our economy”. What would happen if this failed systems? Would we even be able to turn it off if needed? And despite massive advances in computing and energy efficiency – especially the amazing breakthrough in solar production and storage – our planet would still be able to sustainably provide further exponential growth in energy required to run these IAs

?

But Henry was not to worry. He simply asked Leila to organize its 40th. She knew who to invite and how the date and location to Henry and his guests’ preferences and availability, and, of course, its base to optimize a budget.

The budget was based on its assessment that the “life satisfaction” of Henry and his guests would maximize. This calculation took into account not only its current and future financial situation, but also in connection with the possibility framed expenditure on the organization.

contain these other expenses, his future expected balance and the various future choices and experiences that would be available, but that Henry might not even contemplated.

Every so often, Leila Henry would ask for guidance or an option to show, but now it was more about the trust relationship as Leila gain almost always what decisions would Henry knew. In this case, he asked them simply to “surprise him.”

And then he sat back and hoped that the singularity, not come and screw up the party would.

All events in this story are purely speculative and fictitious

• Sean Park, a former Dresdner Kleinwort senior banker and author of The Park Paradigm, founder and Chief Investment Officer of Anthemis Group, an investment and advisory firm focused on digital natives Financial Services

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Our Source: http://www.efinancialnews.com/story/2016-09-30/fn-future-of-finance-fintech-sean-park?mod=rss-fintech

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