​Navigating the new frontier of finance doesn’t come with a playbook. This next phase, The Era of Convergence, is rife with opportunities that transcend industry silos and welcomes an unparalleled degree of collaborative innovation. However, capturing such an expansive array of players could invite a detrimental conflict of interests; it is paramount we establish a commonality- a central point of investment- as this next phase begins.

So what is The Era of Convergence?

Traditional institutions are engaging with their consumer base in an increasingly digital fashion; AI is becoming a common sight across finance; and conversations around digital asset regulation are increasing in frequency; The Era of Convergence is centred upon this digitalisation. The narrative suggests a future in which, as aptly put by Dr Jane Thomason, “a bank isn’t going to be a bank”.

The whole notion of what constitutes banking and finance is being turned on its head. The term disruptive is arguably becoming quite overused in the financial technology industry but it is incredibly apt in this situation. Disruption in this marketplace means, through a growth in digital adoption, we are seeing a betterment of efficiency, of the user experience, and greater accessibility.

The importance of accessibility should not be undermined. Broadening the reach of your product is an elevation and growth tactic beyond compare; and it inherently invites a far more inclusive financial future.

But is this sustainable?

As highlighted by Katharine Wooller, we are witnessing a “phenomenal pace of change”. Financial technology is synonymous with dynamic development, but as the collapse of FTX reminded us, that doesn’t always equate to the creation of a long-term landscape. This rapidity, this excitement, The Era of Convergence, must be married with trust for it to represent a viable reality. Enter regulation. As alluded to previously, conversations on the matter are increasing; and they’re necessary to ensure The Era of Convergence doesn’t simply represent a fleeting trend.

The Era of Convergence Documentary featured a plethora of attuned and engaged voices that each presented their unique interpretation on the matter. This diversity of thought is catalysing technological implementation and ideation that shadows previous phases of development. But commonalities included a call for greater trust, a want for authentic efficiency, and a recognition that we have the opportunity to redefine finance. The definition may not be concise but history-in-the-making is never straightforward.

You can read Alexandra's article and further industry insights in the latest edition of The Financial Technologist. Download your free copy here.