7 Challenges for the Global Digital Economy

Antonio Moneo Vision&Values

The digital global economy will continue to expand and diversify in 2017. New technologies, customer with new habits and global threats will open opportunities and threats for businesses in different sectors. This article summarizes some of them.

New technologies

In the next couple of years, Blockchain technologies will consolidate and be applied to different and innovative uses increasing transparency and decentralization of information. New models will challenge how organizations store and manage data transactions and enable internet based companies develop new financial products and services. The expansion of internet of things will create zillions of data sources capable of measuring and combining physical and digital data to create and expand products and services, such as Biometrics authentication. Quantum computing will open new opportunities for a real-time based economy and mobile devices will have computing power.

New competitors

After an early and atomized stage of fintechs entering the financial market, new large competitors will form digital banks and challenge conventional industries. Smaller fintechs will probably specialize in specific sectors and will concede space to large corporations such as Apple, Google and Facebook which will focus on online payments and general financial services to their clients.

New regulations

In Europe specially, new regulations such as the second version of Payments Service Directive (PSD2) and the General Data Protection Directive aim to transform the financial industry and stimulate competition in the financial sector and provide more security against fraud. In a more competitive, diversified and open market, companies will struggle to offer services at lower rates.

New customers

Millennials and following native digital generations will tackle current digital challenges differently. The robotization of the economy and new measures like the universal income become a reality. Citizens spend less time working and increase their capacity to consume. The debate about privacy will enter in a new phase and individual users will count on newer resources to exploit their personal data, such as personal data lockers. On the one hand, individuals will be less afraid of trading their data, and data collectors will have to pay more for the personal data they can collect.

New business models

A world without cash will become a reality soon. All transactions being digital will help companies gather a complete picture of their market and understand more clearly market opportunities. A completely digital world will make financial services more transparent and accessible, and will create opportunities for a multimodal explosion like augmented reality, will allow customers to analyze the value of a building or calculate the cost of a mortgage for a specific car. Data marketplaces will enable new business to acquire data they do not produce and generate new products and services. Crowdfunding will leave space for crowdlending.

New global threats

New global threats will continue to expand and transform the economy. The sharing economy will find a better legal framework and continue to advance. Massive hacking will force countries and companies to heavily invest in security and political systems will suffer recurring crisis derived from the persistent security crisis.