30.01.2025Pathway 2035 for Financial Innovation

The Swiss Financial Innovation Desk (FIND) has published "Pathway 2035 for Financial Innovation – Your Navigator" at the World Economic Forum (WEF) 2025, a guide aimed at inspiring financial and fintech leaders toward a secure, resilient future. Based on the Bank of International Settlements' "Finternet" concept, this collaborative paper outlines a vision for 2035, where financial interactions are secure, autonomous, and efficient.

The report features insights from Prof. Walter Farkas, co-thematic lead and co-author of the Artificial Intelligence section, highlighting Switzerland's role in shaping the future of finance through AI, digital assets, trust, and quantum-safe technologies.

"I had the honour to contribute to the "Pathway 2035 for Financial Innovation" initiated by the Swiss Financial Innovation Desk. Among other we argued - in the AI section - that smart regulations are needed to ensure the balance between innovation and responsible use of AI technologies." -Walter Farkas

Pathway 2035 is an initiative of the Swiss Financial Innovation Desk (FIND) to foster open discussions within the Swiss financial ecosystem and global financial experts on the future of financial innovation. The report outlines a strategic vision for the future of financial services, focusing on key technological advancements and their implications for the financial landscape by 2035. 

FIND has identified four critical areas for the future: AI, digital assets, digital trust, and quantum-safe technology. These areas are analyzed in detail to explore opportunities and challenges. By 2035, the financial ecosystem is expected to become more digital, democratized, and secure, bringing major changes to financial services and institutions.

In this section of the report, the transformative impact of artificial intelligence on the financial sector is discussed. AI is seen as a major technological shift, comparable to the introduction of smartphones. Its applications are expanding beyond expert use to broader accessibility, impacting how businesses operate and serve clients.

Many financial institutions are already integrating AI into their operations, particularly in areas such as risk management, compliance, and customer service. However, this rapid adoption also raises ethical concerns and risks that need to be addressed. The regulatory landscape is evolving globally, with the US focusing on innovation, the EU prioritizing human rights, and China implementing state-controlled frameworks. The report highlights the importance of balanced regulations that foster innovation while ensuring ethical safeguards.

Looking ahead, AI is expected to become deeply embedded in financial infrastructure, improving security, automating compliance, and enabling highly personalized financial services. For AI to reach its full potential, effective data-sharing between institutions will be essential. Additionally, the report acknowledges the environmental impact of AI technologies, advocating for energy-efficient solutions to reduce their carbon footprint.

The sections on Digital Assets, Digital Trust, and Quantum-Safe Technology in the "Pathway 2035 for Financial Innovation" report outline critical advancements shaping the financial ecosystem. 

Digital assets improve efficiency and reduce costs through distributed ledger technologies (DLTs), but challenges like regulatory adaptation and interoperability remain. Switzerland leads in this field with its innovation-friendly regulations.

Digital trust is crucial for secure transactions, combining cryptography with governance. The report urges public-private partnerships to address challenges like identity verification and data sovereignty. Switzerland’s foresight supports this growth.

Quantum-safe technology is needed to protect against quantum computing threats, making quantum-resistant cryptography essential for financial security.

The Pathway 2035 report serves as a comprehensive guide for stakeholders in the financial sector to navigate the complexities of emerging technologies. It calls for proactive engagement among policymakers, industry leaders, and academia to foster an environment conducive to innovation while addressing ethical concerns and ensuring stability in financial systems.

Overall, the focus on AI within this framework underscores its pivotal role in transforming financial services into a more efficient, secure, and personalized ecosystem by 2035.

More information:

Report: "Pathway 2035 for Financial Innovation – Your Navigator" 
Initiator: Swiss Financial Innovation Desk (FIND) 
World Economic Forum Annual Meeting: WEF 2025