Transformation of the financial system: challenges and opportunities in an uncertain world

The global financial system is in a constant process of transformation, driven by globalization and rapid technological advances. This metamorphosis not only affects the way services are produced and provided but also redefines the very structure of financial activities. New intermediaries and products are emerging forcefully, representing both an opportunity and a challenge for investors and consumers. However, this evolution is not without risks, especially for those lacking adequate financial knowledge. The ability to foresee future economic scenarios has become crucial in this new environment. Currently, more than half of the market value of companies is based on projections of cash flows from the year 2030 onwards. This makes the task of estimating long-term revenues and costs increasingly complicated, especially in a context characterized by interconnected crises that hinder projections. In this sense, uncertainty has become the norm, posing serious challenges for both experienced investors and newcomers. The traditional financial system faces growing distrust. For large sectors of the Western population, financial institutions are seen as destabilizing elements that foster inequality and tax evasion, in addition to contributing to cyclical crises that often affect citizens the most. This crisis of credibility has been exacerbated by the emergence of financial innovations that, while they may offer opportunities, also open the door to misinformation, particularly among the youth. The interest of young people in alternatives such as cryptocurrencies reflects their discontent with a system they perceive as unjust. The promise of quick returns through investments in digital assets can be tempting, but it carries the risk of falling into scams. The lack of a solid foundation in economic and financial knowledge leaves many young people vulnerable to the manipulations of pseudo-gurus who promise easy solutions to complex problems. It is crucial, therefore, that consumers of financial services become more actively involved in financial education. Understanding the lessons of the past and the mistakes made during previous crises can help citizens navigate the current financial landscape. Economic history provides examples that could prevent falls into traps similar to those of tulip mania or the pyramid schemes that devastated entire economies in the past. Regulation of the financial sector must be robust and adaptive. It is necessary to have supervisors who can intervene during moments of irrational market euphoria. Furthermore, consumers must be aware of the implications of their financial decisions, both in the short and long term. Financial education is not only a resource to avoid mistakes but also a tool to foster a more responsible and equitable financial system. The entry of large technology companies into the financial realm presents a double-edged sword. On one hand, their ability to handle vast amounts of data can allow for better risk estimation; however, this can also lead to systemic risks and greater credit concentration, as well as financial exclusion of vulnerable sectors of the population. The balance between innovation and risk must be carefully maintained. As the world faces social, environmental, and economic challenges, the role of the financial sector becomes even more vital. The ability to channel savings into productive investments is essential to address these challenges. It is imperative that the financial system is perceived as a useful and reliable social tool, capable of regaining citizens' trust. Reorienting the financial system towards more responsible and ethical models is possible. There are examples of alternative finance, such as ethical and cooperative banking, that demonstrate it is feasible to prioritize social and environmental values without sacrificing profitability. An informed and engaged citizen can contribute to building a fairer financial system that takes into account not only risk and profitability but also social justice and the environmental impact of economic decisions. Finally, the future of the financial system will depend on the ability of all involved actors—consumers, regulators, and financial institutions—to adapt to a constantly changing environment. Financial education, appropriate regulation, and a commitment to ethics and social justice will be key to building a system that is not only efficient but also equitable and sustainable.