The future of value transfer

The creation, capture and transfer of value is increasingly, and irreversibly occuring in a multitude of digital forms. When you add to that the value driven by digital presence, the move from customer centricity to empowerment and the exponential pace of change in technology – the future of value transfer will have a profound and lasting effect on the future of financial services.

Published: 29 May 2023

The future of value transfer: Platform interoperability to unlock full potential of value webs

Interoperability between ecosystems is necessary to effectively transfer value, create liquidity, drive sustainable growth and opportunities for new business models in a truly interconnected value web. Closed-loop systems will need to evolve into interconnected systems to facilitate decentralization and customer empowerment.We expect the future to increasingly exist within open value webs, supported by platforms that consolidate interoperable nodes for value creation, capture and transfer between regulators, customers, creators and intermediaries on a global basis.

Considering digital identity and digitally-enabled fractional ownership, we believe that future value webs will create new opportunities for advancing financial inclusion. On one hand, they will pave the way for ubiquitous platforms to trade goods, services and other value between people and businesses without the need for physical cash, resulting in enhanced trade opportunities, increased incomes, and growth. On the other hand, the shift to the digital economy can make formal financial services accessible to the billion adults worldwide who still live without them.In this paper, we explore how the evolving nature of digitized value webs, where businesses derive value from empowering consumers, will augment technology’s ability to boost inclusion. This requires a fundamental shift in thinking and traditional business models towards making markets with technology. We believe that future value webs will provide the basis for increasingly sustainable financial services, where profit and purpose converge – provided by many for the benefit of many.

While digitalization is helping eradicate friction in many aspects of financial services, it is also potentially making it hard to maintain the levels of trust that participants have grown to expect, and the industry has strived to develop. In future value webs, where financial services will be increasingly decentralized, trust will need to be cultivated in real-time.We believe that digital identities will move from a static to a fluid concept, and will be attributed not only to individuals, but also to virtually all goods and services, effectively connecting the physical and virtual worlds and capturing the value of nearly all consumer choices.In this paper from Deloitte Asia Pacific, we explore how this shift will impact financial institutions, regulators and consumers, and consider how financial services might be reshaped when trust and empowerment support the simultaneous creation, capture, and transfer of value within a global value web.

Digital currencies, crypto, stable coins, fungible and non-fungible tokens are just some of the ways that the very fabric of commercial and social transactions is being transformed. But that is just the beginning – in a world where we increasingly see the creation and representation of value in digital form, we believe that the future of value transfer will encompass the exchange of value derived from customer activity, in addition to digital representations of currencies, real and digital assets, fractions of assets, and entitlements to those assets.

Creating value from data ownership will be subsumed by the immensely more valuable concept of data access – value will not be about who has the data but rather about who can get the data.  Customers will look to combine the value of their digital presence with their other digital stores of value and will ultimately demand to be empowered to create and capture value from their choices.  Success in the new world will go to those that best empower and enable the simultaneous creation, capture, and transferability of value – in any, and all, digital forms.

The future of value transfer will foster a change in mindset from market taking to market making—from seeking market share by meeting current needs to creating a world of new opportunity by redefining what future wants are going to be.

Looking forward we will be exploring more aspects of the future of value transfer in a series of upcoming articles and discussions along six key dimensions: inclusion, trust, responsibility, sustainability, platforms, and identities.

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