SCOTTSDALE, Ariz.–There are five different debates that still dominate the financial services industry over the next decade, according to one analyst.
Ron Shevlin, director of research with Cornerstone Advisors, said financial services—including fintech—with half to “wrestle” with all five of the issues during the 2020s.
Writing on Inc.com, Shevlin said those five issues are:
- Branches: Dead or alive? “The branch debate is certainly not new. But it’s far from resolved, and will accelerate in the next few years, Shevlin said, adding the debate to date has centered on arguments from Branchphiles and Branchophobes. But “over the next few years, this debate will focus less on consumer behaviors and preferences and more on the potentially disparate economic impact of branch closings,” Shevlin wrote.
- AI: Biased and in Need of Regulation? Accusations of bias threaten the use of AI for certain applications and raise calls for regulation of the technology, observed Shevlin.
“Like the first debate, this is already happening, but in some ways, it’s a misguided debate,” Shevlin said. “The data used in AI models is no different than the data used in non-AI quantitative models and other decision-making processes. Should the use of data in management decision-making processes be disallowed, then, until all data sources are proven to be free of bias? That’s not realistic, and neither are calls for increased regulation of AI.”
- Data: Will Privacy and Security Concerns Curtail the Use of Data? Picking up where the AI debate leaves off, Shevlin said the debate over the use of consumer data will rage on throughout the 2020s with no easy answers. Like branches, the debate will be between Dataphiles and Dataphobes, he said, adding, “Giving consumers choices over who gets to use their data and how it’s used will prove to be fruitless. It’s not just privacy policies that fall short—proposed “dashboards” to give consumers control over their data can’t come anywhere close to the level of complexity involved with the use of consumer data.”
- Currency: Will Cryptocurrencies Fail or Succeed? The cryptocurrency debate, observed Shevlin, starts with whether or not they can even be considered currency. But that could change—and that’s just the tip of the debate iceberg. A predominant component of the cryptocurrency debate in the 2020s will be corporation’s motivations and rights to issue cryptocurrencies.
- China or the West: Which Fintech Model Will Prevail? Shevlin noted the integration of “finance and real-life needs” has produced “super apps” such WeChat, which have yet to catch on in the U.S.
“The big question is: Will they?” asked Shevlin. “The answer will likely be determined by how the other debates outlined in this article play out…This is the mother of all debates among the five listed here. This debate goes to the heart of the American economic system and the zeitgeist of the American psyche.”
The full article can be found here.