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What does the future of money look like? The truth is, no one knows. Payments are transforming due to many forces. From market competition and customer expectations, to technology innovation and a changing regulatory landscape, this dynamic environment is creating opportunity but also generating risk. Balancing fast-moving immediate priorities while planning for tomorrow has never been more challenging. No one can be sure of their own destiny.
Deloitte can change that, helping businesses make the right decisions about tomorrow, today. We’ll give you a clear understanding of what’s happening now and in the future, and what both mean for you. You’ll hear about emerging and experimental ideas, as well as proven approaches. We work across both exploratory and mature markets, observing and influencing the evolution of money and the transformation of the payments world. We apply our experience to protect the flow of money, safely accelerate innovation, drive purposeful growth and transform infrastructure to provide a stable financial system for the future that works for everyone. We do this by creating connections. Between people and information, between institutions and industries, working with governments and regulators, optimising the way we use technology. The future of money will be co-created, with you at the heart of the transformation. The most successful businesses will be those that can meet the demands of today while confidently planning for tomorrow. Effectively balancing opportunity and risk to provide a safe, sustainable and accessible payments ecosystem, and better financial services for all.
FutureMoney insights Why do we care about the future of money? Money is in flux. With central banks exploring digital currencies, new payments standards and regulations, and advances in technologies such as blockchain, cryptography, cloud storage and AI, the pace is unlikely to let up. This blog lays out how we have analysed the myriad of factors shaping the future of money. Find out more Who's who in the digital money universe? Payments are the connective tissue of the economy. New regulations and technology mean that banks, payment service providers, regulators, big techs, fintechs and corporate and individual users all have a stake in the evolution of money. Find out more What foundations are we building the future of money on? The future of money depends on users. Acceptance and adoption rates will define the success, or otherwise, of digital money. To understand where we are going, we need to understand where we are starting from. In this blog, we begin by investigating the six forces that are shaping the immediate future of money. Find out more Understanding the drivers of change What is shaping the future of money? Here we look at key drivers: users' expectations, standards and regulations, competition and the technologies that facilitate new means of value storage, transfer, and exchange. How they interact will determine the future of money. Find out more Developing scenarios for the future of money We have derived two critical, independent uncertainties among the drivers of the Future of Money: level of digital asset adoption, and extent of regulatory control. The interaction of these two yields four very different potential scenarios, which we begin to explore. Find out more Scenario 1 - 'Highest freedom': high tech…low reg 'Highest freedom', our first, thought-provoking scenario, is one of high adoption of digital assets and low regulatory control. We explore both the upsides - flourishing innovation - and downsides - cyber threats, and risks of digital exclusion - of this outcome. Find out more Scenario 2 - 'Village economies' - fragmented silos of digital and physical money 'Village economies' portrays a world in which there is low regulatory control and low adoption of digital assets. Money fragments into physical and digital silos. This scenario is the one of greatest threats and fewest opportunities. Find out more Scenario 3 – ‘United in prudence’: Prudence wins, and innovation loses ‘United in prudence’ is a scenario of high stability but limited innovation. Yes, financial stability is preserved, but at a cost: digital money is prevented from reaching its potential and delivering on the promise of speed, inclusion, lower costs and money with ‘memory’. Find out more Scenario 4 – ‘Government coin’: a monetary utopia of innovation and regulation ‘Government coin’ paints a world where the adoption of digital money and regulatory control are both high, and in balance. Digital money with ‘memory’ becomes mainstream. Costs are lowered and inclusion is improved. But this ideal requires determination, investment, innovation and cooperation. Find out more First steps into the future: What can we expect in the near term, and what might inhibit progress? From consumer demand and competition, to regulation and digital asset adoption, a range of forces are driving the future of money. Our research informed four distinct scenarios to describe how things will look in 2035. However, that is still some way off and we can see likely near-term changes more clearly, as well as ‘drag’ factors that could materialise. Find out more The future of money and… financial services institutions The future of money will impact the business models of today’s financial services firms in a number of ways. As a result, how firms cooperate and compete going forward will change, as successful firms of the future adapt their products, infrastructures and networks of alliances to thrive. Find out more The future of money and… public institutions, regulators and policymakers The evolving nature of money will require central authorities to adapt. The implications are vast, including issues such as sustaining financial stability, maintaining trust, ensuring fair customer treatment, establishing updated global standards and adapting to new ways of administering core functions like tax collection and fighting financial crime. Nevertheless, against a backdrop of fundamental change, we anticipate that central authorities will retain their key role across the ecosystem. Find out more The future of money and sustainability The future of money promises to transform more than cash in wallets. I should also be sustainable and more eco-friendly. Currently, there are opportunities for blockchain operators to adapt their practices in favour of greener consensus mechanisms. Down the road though, broader adoption of digital assets will encourage greater investment in low carbon energy sources, as well as new ways to put actionable insight in the hands of consumers seeking to make more climate-friendly choices. Find out more The future of money and… consumers and business As the future of money takes shape, businesses will need to adapt their products, channels and operating models to meet the evolving needs of consumers, drawing on the characteristics of digital currencies. And in the background, consumer finance could change dramatically, as digital assets are increasingly accepted as collateral and P2P lending evolves. Balancing security and user experience will continue to be essential. While physical cash will remain relevant, digital payments will continue to grow in both B2C and B2B contexts, forcing businesses to adjust pricing, marketing, supply chains and compliance strategies. Find out more The future of money and infrastructure investment The future of money will require new investments in infrastructure and new partnerships to be forged. Firms must be able to handle the increased computational, security and storage requirements of a future dominated by digital assets. It will also be imperative for change makers not only to understand what is needed, but also to convince budget holders and boards to secure the resources needed to succeed in the future of money. Find out more Stepping into the future of money The future of money will require us to prepare for significant change, impacting areas of investment and infrastructure spend, demanding that we keep up-to-date on evolving innovation and regulation in our respective markets, developing new capabilities and, all the while, prioritising compliance, safety and security. It is clear that as we move forward, collaboration will be key in navigating the rapidly evolving financial landscape. Forecasting the future is difficult, so we offer clarity on what we know today, highlight the uncertainties that will influence the future and provide you insights to inform your own strategic planning. Find out more
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Key Contacts Hamish Thomas Payments and FutureMoney leader Email Hamish +44 (0)20 7007 0104 Ed Moorby Digital assets leader Email Ed +44 (0)20 7007 6555 Suchitra Nair Regulatory strategy leader Email Suchitra +44 (0)20 7007 7963 Del Nadarajah Financial crime leader Email Del +44 (0)20 7007 2740 Tom Macdonald Transaction services leader Email Tom +44 (0)20 7007 1966 Hayley Thompson Transaction services Partner Email Hayley +44 (0)121 695 5811