The financial system as we know it? It's a relic. Imagine rotary phones in the era of smartphones. It’s cumbersome, confusing and quite frankly, patronizing to our intelligence. This industry runs on gatekeeping. The actual process to access your own money is like going through a bureaucratic maze with fees hiding around every corner. Here's the good news: a revolution is brewing. It's quiet, it's decentralized, and it's happening right under the noses of the very institutions it threatens to disrupt: embedded finance.
Great Unbanking Is Happening Now
Forget incremental improvements. This is not just a nicer mobile app or a better deal on their interest rate. What we’re seeing is a very deep shift in the balance of power. This “Great Unbanking” embeds financial services even more deeply into the platforms and experiences we access every day. Now imagine that when you buy a cup of coffee, you automatically accrue fractional shares of Starbucks stock. Imagine having your loan approved on the fly through your favorite e-commerce application, leveraging your spending patterns rather than your credit ratings. This is the real promise of embedded finance, and it is not a far-off dream. It's here.
Well, the old guard would have you think that banks are some sort of necessary, unchanging bedrocks of our society. They need you to think that learning their rigged, confusing systems is a prerequisite for your safety and success. Just don’t fall into that cognitive dissonance! What if that security isn’t real? What if that stability is simply stagnation? What if the price isn’t even close to being reasonable? It's time to ask yourself. Do you need a bank? Or do you need banking services?
Control Your Digital Identity
This revolution is powered by a new wave of technology that is democratizing finance and disrupting the status quo like never before. Consider Digital Identity 3.0. For too long, banks have treated our personal data like it was their own Fort Knox. KYC (Know Your Customer) has now morphed into “Know Your Bank’s Profit Margin.” The future is self-sovereign identity, where you own your data, and you can choose who has access. Think of it like this: you wouldn't let a single store hold all your personal information every time you want to buy something. Here’s why you need to take that action with your bank.
Sumsub ID is just one example of a company paving the way, but the real innovation lies in the underlying principle: You own your identity, not your bank. This isn’t only about convenience; this is about freedom. It’s really about taking charge of your financial future. It's about building a future where access to financial services isn't contingent on begging permission from a centralized institution.
Additionally, the emergence of AI should not be viewed as simply a technological innovation. It's a moral imperative. Let’s not kid ourselves, banks have long controlled access to essential aspects of our lives with opaque algorithms. Those algorithms are notably opaque, biased and meant to maximize profit, not fairness. Solutions powered by AI, including device fingerprinting and behavioral analysis, significantly improve the ability to detect fraud. All these technologies hold tremendous potential to weave together a more secure and equitable financial system. The key is transparency and accountability. Instead, we want to make sure these AI systems are used to protect consumers, not figure out new ways to exploit them.
Banks Must Adapt Or Die
Banks that are working with fintechs like Wise to integrate their services are smart to do so. They’re not — they’re recognizing that the game has changed, and they need to adapt or die. Partnerships aren't enough. At this point, banks have to completely reimagine their business models. They should continue to adopt an increased level of transparency, focus on customer experience and engage in the cultivation of an open, decentralized financial ecosystem.
Here's a harsh dose of reality for traditional banks: you're losing customers. You’re getting crushed by fintechs and decentralized platforms. More importantly, you’re missing the mark by not filling their sails. Embedded finance provides a saving grace, an opportunity to reboot your business and regain market share you’ve lost to competitors. That’s tough, but it takes a commitment to step outside of your bubble, to disrupt yourself, and to ultimately prioritize the customer experience.
With the emergence of “Agentic AI,” which refers to AI agents that act independently, including in the financial space, both the potential and the peril are enormous. Picture AI-powered personal financial advisors that automatically optimize your investments, negotiate better interest rates on your loans, and maybe even pay your bills for you. What does it mean when these agents are wrong? Who do you hold accountable when they engage in behavior that’s clearly not in your best interest? Digital Identity 3.0 and embedded finance together can provide the secure, seamless, and auditable infrastructure we need to support these machine-to-machine transactions. We need to address these ethical and regulatory concerns today, before it’s too late.
The lines between banks and fintechs are starting to blur and that’s for the better. The future of finance is all about providing the greatest value to consumers. It’s no longer based on who is paying the mortgage on the building. Banks that can adapt to this new reality, that can embrace transparency, embedded services, and dynamic identity verification, will thrive. Those that continue to grasp tightly to old ways will be left behind.
My prediction? Ten years from now, “bank” will feel as outdated as “dial-up modem.” Finance will be invisible, seamless, integrated into every aspect of our lives. It should be smart, connected, and accessible to everyone. It should be powered by decentralized technologies, governed by transparent algorithms, and controlled by you. This is the underground revolution, and it’s time to take a side. Whether you’re an establishment shill or a disruptive innovator.
