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In the next several years, FinTech, AI, and data-driven technologies will converge into a single ... [+] advanced technology

Over the past 100 years the financial industry has largely excluded people in retirement. Even today tech entrepreneurs are ignoring financial inclusion for people over 60, who make up the wealthiest part of the financial system, and instead, are developing new financial products designed for younger people. The most valuable and capable client demographic in terms of purchasing power are the citizens of the 7th Continent which is made up of 1 billion people over 60. The global spending power of this demographic is expected to be $15 trillion this year. Who will serve this market? Longevity Banks and FinTech 2.0 services will attract people 60+ who want to optimize their wealthspan.

In the last 10 years investment in the FinTech industry has exceeded $350 billion dollars. During the same period a similar amount of funding was invested in other industries such as AI, healthcare, and aerospace.There have been a number of breakthroughs in these other areas but not in FinTech. The amount of money invested in FinTech has not yielded significant results compared to other domains. FinTech received more investment but accomplished less with it and FinTech stalled.However, recent advances in the development of practical AI tools are enabling new FinTech solutions.

The 7th Continent - 1 billion people in retirement

Progressive governments and businesses understand that whole populations are living much longer than in previous generations and realize that we are going to need institutions that are organized in a different way. For example, traditional banks werent designed to serve large numbers of clients living a long, long time. Today, banks have a small number of clients who are over 90 and they are outliers. In the next decade that demographic will increase dramatically.

In the next few years, age-friendly FinTech companies and Longevity Banks will develop new financial products designed for clients who are planning to live extra long lives and want to remain high functioning and financially stable throughout. Clients of Longevity Banks will have more time to accumulate wealth, will have a longer investment horizon, and will benefit from compounding. Financial services innovators have an opportunity to enhance the financial lives of a billion people by designing new solutions and adapting existing products and services. New products that provide a comprehensive view of investments, taxes, insurance, and regulation without unneeded complexity will appeal to citizens of the 7th Continent.

Rising hubs for the new financial industry.

The Intersection of Longevity and Finance

This map shows the location of major preventive medicine and financial hubs. London and Singapore are distinguished as being hubs for both the financial industry and the preventive medicine industry. As such they have extremely strong potential to become global leaders in Longevity and Finance. When these industries intersect, novel financial systems will be developed that will treat Longevity as a dividend and will play an integral role in the Longevity Economy. The most advanced FinTech 2.0 technology adjusted for Longevity is emerging in London and tools for FinTech 2.0 are already in development there.

The Longevity AI Consortium at Kings College London is developing sophisticated methods for translating advanced AI for Longevity solutions including novel applications of life data for insurance companies, pension funds, healthcare companies, and government bodies. This year theConsortium is planning to expand to Switzerland, Israel, Singapore, and the US. Progressive investment banks, pension funds, and insurance companies are developing new business models, and are using AI to improve the quality of the analytics used to formulate them. In the near future, the synergy between innovative AI and wealth management will lead to the creation of new financial institutions optimized for the aging population and age-friendly Longevity Banks will make banking easier and safer for seniors.

Longevity Valley

These developments will result in the emergence of a Longevity Valley with the highest concentration of robust preventive medicine, HealthTech, Longevity FinTech, and AgeTech. The most likely place for the first Longevity Valley is Switzerland because Switzerland is extremely stable in terms of financial, social, and political frameworks. Switzerland was also recently recognized by the United Nations as the most AgeTech friendly country. The Longevity Valley will attract people who prioritize maximizing their healthspan and wealthspan. The first Longevity Bank is also expected to emerge in Switzerland since the pillars needed for the success of such a bank are present there. These pillars include a progressive RegTech environment, sufficient FinTech development, a MedTech ecosystem, and a significant number of individuals 60+ who fit the client profile.

In the near future, FinTech, AI, and data-driven technologies will converge into a single advanced technology. Next generation financial companies will use engineering methods with integrated systems to treat business, finance and technology as a single unit with complementary parts. The resulting FinTech 2.0 will offer unprecedented potential for growth and disruption.Humans have always desired health, wealth, and longevity, but usually had to settle for one or two. For the first time people are planning for a very different future with the possibility of living to 100 and beyond and being healthy and financially stable the whole time.

Click here to preview a new book that I co-authored with my colleague Dmitry Kaminskiy Longevity Industry 1.0 - Defining the Biggest and Most Complex Industry in Human History. Dmitry Kaminskiy and I serve on the advsiory board of the Longevity AI Consortium at Kings College London.

Here is the original post:
AI Will Give Rise To FinTech 2.0 And Longevity Banks - Forbes

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