Imagine a financial institution comprised not of brick and mortar, but primarily of algorithms. That’s what one futurist entrepreneur and former presidential advisor predicts banking will look like by the 2050s. Is he correct? Time will tell, though our increased reliance on technology is a certainty.  

As we explore upcoming finance industry changes that could reshape the financial landscape, we’ll also look at technologies already present in the financial sector but not yet fully harnessed. Implementation of these innovations will help financial institutions remain competitive and viable. 

Evolving Finance Industry Trends and Technology 

Digitization and Automation 

Like many industries, finance is moving toward fully digital transactions. However, this transition is much farther behind than you might expect. Most surveyed chief financial officers (CFOs) report that while they’ve invested in digitization and automation, nearly 75% of their processes haven’t yet been upgraded due to resource constraints, capability gaps, or competing demands. As organizations overcome these obstacles, digitization and automation will become standard.  

Digital Currency 

Digital currency can refer to electronic representations of traditional currencies, like dollars or euros, or cryptocurrency like Bitcoin. All transactions with these currencies are performed electronically.  

Cashless businesses are on the rise, and a remarkable 84% of payments made in the U.S. in 2024 were cashless. Still, finance industry executives don’t believe we’ll be 100% cashless worldwide anytime soon, as not all countries and economic classes are prepared to make the transition. Further, as cashless transactions become the norm, the need for increased cybersecurity measures will grow, since digital currency systems can be hacked and sensitive information exposed. 

Generative AI 

Only about 20% of surveyed CFOs report using generative (gen) AI, and half of those individuals state they’re still in the early stages of gen AI use. However, adoption is expected to grow, as companies using gen AI have seen considerable productivity gains. Gen AI frees employees from many manual tasks, allowing them to focus on value-adding activities and improve decision-making through vital data analysis. 

Blockchain 

Blockchain, primarily used in the finance industry and government, employs a shared, decentralized digital ledger. Every transaction is referred to as a “block” added to the chain, visible to all users. Due to its unprecedented security and transparency in tracking financial transactions, shipments, and other commercial activities, blockchain is expected to become a standard tool. 

Open Banking APIs 

Application programming interfaces (APIs) connect financial applications with financial institutions, significantly impacting transaction security, speed, and cost. Technology-driven financial institutions, or fintechs, and traditional banks alike rely on these software applications, often in partnership. These collaborations are driving the global expansion of open banking APIs.  

Quantum Computing 

Quantum computers, which encode data on qubits made of electrons or photons, are exponentially faster than traditional computers and can solve problems that even supercomputers can’t. While currently in limited use and not sold commercially, industry sources project quantum computers will be widely available within a decade or two. 

Diversify Your Finance Industry Options With a Degree 

The University of Texas Permian Basin offers a choice of three AACSB-accredited online finance degrees to prepare you for a variety of rewarding careers in today’s (and tomorrow’s) finance industry. Each program is guided by renowned PhD-level educators with finance industry experience. 

Online Master of Business Administration in Finance   

An MBA is widely regarded for its prestige in the business world. Develop comprehensive business expertise with an emphasis on finance by completing 33 to 42 credits. Finish in as little as four semesters. 

Online Master of Science in Finance 

Prefer a graduate degree focused on finance? Consider this 30-credit program: one of the few in Texas with STEM certification. Finish in as little as four semesters. 

Online Bachelor of Business Administration in Finance 

Looking for a bachelor’s degree? Gain essential financial management skills applicable across many career paths with a BBA in finance: a stepping-stone to earning prestigious Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP) designations. Available online exclusively at this UT System institution. 

Invest in Your Future on Your Own Terms 

A finance degree is an investment in your career that requires your valuable time and financial resources. UTPB’s asynchronous online program format enables you to earn your degree on your schedule, from virtually anywhere. We’re also one of the most affordable accredited universities nationwide, as these accolades demonstrate: 

Prepare for a successful future in the finance industry. Apply to an online UTPB finance degree program today! 

Sources: 
https://www2.deloitte.com/us/en/pages/finance-transformation/articles/finance-digital-transformation-for-cfos.html
https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/toward-the-long-term-cfo-perspectives-on-the-future-of-finance
https://www.pwc.com/us/en/services/consulting/business-transformation/library/future-of-finance.html
https://www.mckinsey.com/capabilities/operations/our-insights/finance-2030-four-imperatives-for-the-next-decade
https://www.paypal.com/us/brc/article/cashless-business-pros-and-cons
https://thequantuminsider.com/2023/06/06/types-of-quantum-computers/