Web 3.0 is Expected to Transform the Financial Services Industry, But Why?

There’s little doubt that AI is going play an increasingly vital role in finance. In a recent NVIDIA survey, 83% of finance professionals believed that AI is critical to their company's future success.

However, the jury is still out on whether Web 3.0 and its landscape of decentralized and largely unregulated technology truly heralds a new era of the internet, or whether it is the wishful thinking of a small group of devotees which will fail to see engagement by the wider population.

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The Adoption of Web 3.0 in Southeast Asia

If Web 3.0 becomes widely adopted in Southeast Asia, we are likely to see a great deal of attention focused on DeFi. However, there are many other avenues which are likely to see adoption in this part of the world.

Websites should become more 3D orientated and more responsive than previously possible. Customized experiences will become even deeper than at present thanks to the increasing sophistication of AI technology and more detailed and actionable data being produced by devices in constant communication.

The continued proliferation of 5G and superfast broadband technology will significantly boost this connectivity by  increasing data transfer rates and reducing latency. Existing IoT technology has already gone some way towards showing us the potential of these connected technologies and this could be potentially built on by the expansion of Web 3.0. 

For example, UOB has stated that Web 3.0 technology is enabling it to keep pace with rapidly evolving customer trends and deliver increasingly personalized experiences. The ability to hyper-personalize the digital banking experience based on digital footprint by integrating consumer lifestyles brings the two-sided market together for a greater network.

Likewise, DBS is already experimenting with 5G, IoT, and private cloud technology to build new methods of communication which it believes with empower the brand to deliver better financial services to its Southeast Asian customers.

Productivity will increase, borders will become increasingly irrelevant, and interactivity will become the norm. Aside from the manufacturing and utilities sector, the professional and financial services sector is predicted to experience the greatest economic impact from the proliferation of these technologies.

The hunger for data, speedy communications, and reliable connectivity – across the web of the physical and ubiquitous virtual networks – has never been this intense. And it will only get more voracious. Mounting needs for wide area networks, multi-functional communications, Internet of Things (IoT), information access/ exchange, and efficient connectivity are constantly pushing the envelope for new communication architectures, said the company in a report, 

" For banks, it allows greater connectivity, a greater understanding of consumer preferences, and keep up with the ever-changing consumer trends, and promote greater collaboration with ecosystem partners."- Jacquelyn Tan Managing Director & Head Group Personal Financial Services, Group Retail, UOB

To read more about the potential risk factors Web 3.0 presents to the industry.