[99%Tech]

[99%Tech]

Share this post

[99%Tech]
[99%Tech]
What A Coming Wave Of Diffusion Means For Fintech
Copy link
Facebook
Email
Notes
More
User's avatar
Discover more from [99%Tech]
⚡️[99%Tech] The frontier of innovation
Over 5,000 subscribers
Already have an account? Sign in

What A Coming Wave Of Diffusion Means For Fintech

The future of innovation is global. We discuss it here

Aug 01, 2024
1

Share this post

[99%Tech]
[99%Tech]
What A Coming Wave Of Diffusion Means For Fintech
Copy link
Facebook
Email
Notes
More
Share
Create a detailed 3D image of a giant industrial press squashing a city

This post first appeared in my Forbes column here.

As we stand on the cusp of The Great Diffusion (the topic of my recent Tedx talk), an era defining shift from consolidated power to a more decentralized and distributed framework, financial services find themselves at a crossroads.

Thanks for reading [99%Tech]! Subscribe for free to receive new posts and support my work.

The coming wave promises to reshape industries, none more so than the guardians of our capital.

Here are critical questions financial services must grapple with in this new era:

How is Fintech Powering Diffusion?

A range of emerging tools are powering diffusion in financial services. Banking as a services platforms are allowing anyone to offer a bank account, credit card or insurance policies. Companies like Plaid, and Open Banking regulations are making interconnectivity of accounts much simpler, thus decreasing the value of centralized single service (incumbent) players.

No surprise we’ve seen an explosion of fintech activity over the last decade. But what will the next few decades bring?

Can Inclusivity Become a Core Tenet?

Technology has the potential to bring financial services to the masses, including those previously underserved or excluded by the traditional banking sector. We’ve already seen the impact of mobile banking in Africa, or government backed systems like PIX and Aadhar in Brazil and India. In the U.S. leading fintech players like Chime (where I am an investor), Robinhood and others are democratized access to low-fee bank accounts, investments and more.

The question remains: how will financial institutions harness this to create truly inclusive offerings?

What Innovations Will Emerge?

The great diffusion could move production from global integrated supply chains to be closer to home and more local. As a result, the need for new financial products and services grows. How will financial services innovate to meet the demands of a new generation of entrepreneurs whose needs differ from the corporate giants of old?

With the rise of freelance and contract work, the financial stability of individuals becomes more volatile. What solutions will emerge to provide these workers with financial security traditionally afforded by full-time employment?

What Skills Will Be Prized in the Diffused Future?

As the job market changes, so too do the skills required to thrive within it. Financial services must ask themselves how they will contribute to the education and skill development of future generations to prepare them for this new landscape.

If A.I. will automate financial decisions, how do we prepare our children for the future?

Are Local Economies the New Global?

If economic activity moves to be more local or regional, financial institutions must consider their role at the micro-level. How will they adjust their strategies to cater to the resurgence of local businesses and community projects?

We’ve seen a resurgence of branch banking in the U.S. Will that be the way to support a more diffused population? Or are there alternative ways to build authentic, trusted relationships with customers around the world in a more diffused way?

How Will Decentralization Reshape Finance?

The advent of blockchain and decentralized finance (DeFi) is perhaps one of the clearest attempts at diffusion in financial services – moving us from centralized systems to decentralized ones. They may upend the centralized banking model.

But what does this mean in practice? Will peer-to-peer lending become the norm, and how can traditional institutions adapt to a world where the intermediary is no longer required?

Where We Go From Here

The answers to these questions are not yet clear, but one thing is certain: the industry must engage with the Great Diffusion proactively. Financial services need to envision their place in a world where the individual has more agency, where local and global intertwine in new ways, and where sustainability is not just a choice but a necessity.

In this kaleidoscope of change, financial services must find their new identity, not as behemoths of a bygone era but as nimble facilitators of a diffused future. How we respond now will determine the financial landscape of tomorrow. It's time for the industry to innovate, not just to survive but to lead in the era of the Great Diffusion.

Want to learn more about The Great Diffusion? Check out my Ted Talk here.

Thanks for reading [99%Tech]! Subscribe for free to receive new posts and support my work.

1

Share this post

[99%Tech]
[99%Tech]
What A Coming Wave Of Diffusion Means For Fintech
Copy link
Facebook
Email
Notes
More
Share

Discussion about this post

User's avatar
What does it take to become a unicorn founder? Insights from 200 startup journeys
The future of innovation is global. We discuss it here.
Oct 21, 2023
14

Share this post

[99%Tech]
[99%Tech]
What does it take to become a unicorn founder? Insights from 200 startup journeys
Copy link
Facebook
Email
Notes
More
1
How technology will power generational transfer from the coming silver tsunami of small business ownership
Explore how the silver tsunami of baby boomer retirements is reshaping SMB ownership, with technology driving new models and opportunities for aspiring…
Feb 1
2

Share this post

[99%Tech]
[99%Tech]
How technology will power generational transfer from the coming silver tsunami of small business ownership
Copy link
Facebook
Email
Notes
More
Money Problems: The Playbook for Digital Lending in Emerging Markets
Guest Post. The future of innovation is global. We discuss it here.
Jan 11, 2024
23

Share this post

[99%Tech]
[99%Tech]
Money Problems: The Playbook for Digital Lending in Emerging Markets
Copy link
Facebook
Email
Notes
More

Ready for more?

© 2025 Alex Lazarow
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More

Create your profile

User's avatar

Only paid subscribers can comment on this post

Already a paid subscriber? Sign in

Check your email

For your security, we need to re-authenticate you.

Click the link we sent to , or click here to sign in.