The financial industry is undergoing a profound transformation, driven in large part by the rise of personalization in finance. It’s no longer just about digital banking platforms or faster transactions. We’re entering a dynamic new era where tailored financial experiences, decentralized systems, and digital assets are redefining how money moves and how institutions serve their customers.

This sweeping shift—often referred to as the “great transition”—is challenging traditional models and reshaping the very foundation of the financial world.

From Platforms to Personalization in Finance

Over the past two decades, financial technology has leaned heavily into platforms. We’ve seen the rise of giants like Alipay, PayPal, and Venmo. But the next phase is more intimate. It’s about empowering individuals with tools that are tailor-made for their specific needs. This is the personalization of finance.

Power is shifting. Traditional institutions once held all the control. They determined who got access, set the rules, and defined the terms. But today, users are gaining influence. Armed with technology and data, they are now steering the relationship with financial providers—not the other way around.

The Balance Sheet Tells the Truth

One of the clearest lessons from recent years is this: if the product doesn’t change, nothing really changes.

Financial institutions may roll out apps and digital services, but if they cling to legacy products, they risk becoming obsolete. Consider the humble deposit account. It’s still structured around outdated models: account numbers, minimal interest, and limited engagement. If it can’t evolve into a fully functional digital wallet, it risks irrelevance in a connected world.

A good way to judge innovation is by looking at the balance sheet. Many buy now, pay later (BNPL) companies seemed revolutionary. But their financials revealed instability. Without cheap capital and sustainable margins, the model starts to crack. True innovation doesn’t just look sleek—it works economically too.

Amateurization and the Rise of the Individual

Another key trend in this transition is what’s been called the “amateurization” of finance. It sounds dismissive, but it’s actually empowering. It refers to the rise of retail investors, everyday users who now have access to tools, markets, and data once reserved for professionals.

Think back to the Reddit-led stock surges. That wasn’t just a fluke. It was a signal that individuals—when united and informed—can influence markets and demand change.

In the future, financial institutions won’t define relationships. Customers will. They will set the terms, expect seamless digital access, and want services that adapt to their lifestyle, not the other way around.

Digital Wallets, Stablecoins, and Programmable Money

In this new world, the digital wallet is king. If banks want to remain relevant, their deposit accounts must evolve into digital wallets that are interoperable, intelligent, and secure.

But it doesn’t stop there. The next step is programmable money. Stablecoins issued by banks could become standard. With regulatory clarity increasing, banks could leverage their balance sheets to issue digital currencies that support real-world and online transactions—including in the metaverse.

This is not just theory. We’re already seeing early signs of these changes. What was once a concept is now a roadmap.

Decentralization Is Driving Disruption

The tension between traditional finance and decentralized finance (DeFi) is real. But it’s not necessarily a battle. It’s a convergence.

Banks and DeFi platforms are slowly realizing they can complement each other. Traditional banks bring security, trust, and regulatory know-how. DeFi brings speed, accessibility, and flexibility.

For instance, a future where banks issue stablecoins and connect to blockchain-based smart contracts isn’t far-fetched. It’s increasingly likely.

Personalization in Finance: Shaping the Future

A key reason companies like Alipay flourished in China was a regulatory gap that allowed innovation to sprint ahead. But that window is closed now.

Regulators worldwide understand the stakes. They’re tightening control, setting rules for digital wallets, stablecoins, and decentralized platforms. This will slow down some innovation—but also bring trust and broader adoption.

In this transition, regulation isn’t the enemy. It’s the guidebook. And those who learn to innovate within it will lead the next generation of financial services.

Universal Basic Income and Digital Inclusion

An interesting side note in the broader discussion is universal basic income (UBI). As automation and AI continue to replace jobs, societies must find new ways to ensure financial stability for all.

But inclusion doesn’t mean giving people a bank account. It means giving them digital access. With it, people can create their own wealth, engage in global markets, and invest in new assets.

One example is crypto billionaires who started with very little but took early positions in digital assets. Their success reflects the power of access—something every person should have.

Automation vs. Digitization: Know the Difference

It’s easy to confuse automation with digitization. Automation improves efficiency. Digitization transforms systems.

For example, using chatbots or automating loan approvals is helpful. But creating entirely new asset classes—like tokenized real estate or digital art—is digitization. It changes the rules and expands possibilities.

In the financial world, this distinction matters. Automation can help traditional systems stay afloat. But digitization builds the systems of the future.

A Call to Action for Banks

The message is clear: if your product hasn’t changed in decades, your business model hasn’t either.

Issuing a plastic debit card in a world of cloud-based wallets is like handing out VHS tapes in the age of streaming. Customers expect more. They expect personalization, digital access, and relevance across platforms—including those that haven’t been invented yet.

This is the time for bold moves. For reevaluating the core product suite. For creating hybrid models that combine traditional strength with digital agility.

The Path Forward

We are in the middle of a major shift. From platforms to personalization in finance. From institutions to individuals. From automation to digitization.

This great transition isn’t just about technology. It’s about reimagining the role of finance in a connected, digital-first world. And while the road ahead is complex, it’s filled with opportunity for those willing to adapt.