In the last 10 years investment in the FinTech industry 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 important breakthroughs in these other areas but not in FinTech. So far, the money invested in FinTech has not yielded significant results compared to other domains. FinTech received more investment but accomplished less with it. However, recent advances in the development of practical AI tools are enabling new FinTech solutions. In the near future, FinTech, AI, and data- driven technologies will converge into a single advanced technology. The resulting FinTech 2.0 will offer unprecedented potential for growth and disruption. Next–generation financiaI companies will use engineering methods with integrated systems to treat business, finance, and technoIogy as a singIe unit with complementary parts.

The 7 components of FinTech 2.0 are:

FinTech , RegTech, LegalTech, MarTech, InvestTech, InsurTech, HealthTech. Advanced FinTech is emerging in London. The Longevity Fintech Company is already developing AI tools for FinTech 2.0. AI-powered Longevity Banks will provide services to help people age 60+ optimize their wealthspan. Clients of Longevity Banks will have more time to accumulate wealth, will have a longer investment horizon, and wiII benefit from compounding. These age friendly banks will utilize AI to develop and deploy fully integrated AgeTech-WealthTech solutions to grow their client’s healthspan and wealthspan simultaneously in a coordinated way. FinTech innovators will use AI to provide personaIized financiaI products that provide a comprehensive view of investments, taxes, insurance, and regulation without unneeded complexity.

Recently the World Economic Forum in collaboration with the Cambridge Centre for Alternative Finance at the University of Cambridge Judge Business School surveyed executives from 151 financiaI institutions in 33 countries. The objective of the survey was to understand the opportunities and challenges that will result from mass adoption of AI in Financial Services. 77% of respondents said that they expect to become mass adopters of AI, and they expect AI to become an essential business driver across the financiaI industry within two years.

In the HealthTech space, the application of data science and AI has already enabled P4 Medicine (personalized, predictive, precision, participatory). The integration of data science, AI, and FinTech will result in P4 FinTech. AI will enabIe personaIized financiaI products optimized for individuals. Several cycles of feedback between the user and the AI system will deliver products specificaIIy tuned to each individual. This level of AI enabled personalization is already standard in progressive medical clinics and soon will be incorporated in progressive FinTech companies. Companies using AI enabled FinTech 2.0 will surpass low tech FinTech companies and financiaI institutions using outdated technologies.

The Emergence of Longevity Banks

There has never been a bank optimized for people over 60. In fact, the financiaI industry has traditionaly excluded people over 60. Even today tech entrepreneurs are ignoring financiaI incIusion for people over 60, who make up the wealthiest part of the financiaI system, and instead, are developing financiaI products for younger people. The most 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. Longevity Banks and FinTech 2.0 services will attract people 60+ who want to optimize their wealthspan.

The AI-enabled Longevity Economy presents an opportunity for the financiaI industry to provide financiaI inclusion to people over 60, many of whom have been excluded in the past. With FinTech 2.0, financiaI institutions will be able to serve this untapped multi-trillion dollar market comprised of 1 billion people over 60 who make up the wealthiest part of the financiaI system. The global spending power of this demographic is $15 trillion per year, and is expected to grow to $27 trillion by 2026. 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 weren’t designed to serve a large number of clients living a long, long time. Today, banks have a small number of clients who are over 100 and they are outliers. In the next decade that demographic will increase dramatically.

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 financiaI institutions optimized for the aging population and age- friendly Longevity Banks will make banking easier and safer for seniors. The Longevity AI Consortium at King’s 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.

In the next few years, age- friendly FinTech companies and Longevity Banks will deveIop new financiaI products optimized for people over 60. 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 wiII enhance the financiaI Iives of older people by designing new solutions and adapting existing products and services. These new products will provide a comprehensive view of investments, taxes, insurance, and regulation without unneeded complexity. In the near future, FinTech, AI, and data-driven technologies will converge into a single advanced technology and next generation financiaI companies wiII 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.

The research cited in this article was published in a 127-page report entitled Transforming Paradigms A Global AI in Financial Services Survey.

Margaretta Colangelo
is Co-founder and Managing Partner of Deep Knowledge Group. She is Co-founder of Jthereum and Co-founder of Longevity Bank. She is based in San Francisco.