On Finternet.
Missed the mobile boom? Slept through Jio-fication? Wake up — The Next Trillion-Dollar opportunity is here!
Amira Patel, a twenty-seven-year-old small business owner in Kanpur, remembers the days when expanding her handmade jewelry business beyond her local market seemed impossible. Banking was a maze of paperwork, international payments were a costly nightmare, and accessing loans felt like trying to crack a secret code.
Then, in 2025, Amira found herself tossed from the fringes of the financial world into the heart of a global marketplace. She achieved this feat not by hiring an army of accountants or flying to foreign banks, but by simply with an app on her smartphone. The app, powered by the Finternet, required only her digital identity and an internet connection. Amira entered her unique ID, did the biometric verification (through fingerprint/ face ID), and seconds later, she was navigating a world of borderless finance that was previously unimaginable.
With a few taps, Amira could now accept payments from customers in Tokyo, secure a business loan backed by her digital reputation, and invest in fractional shares of companies halfway across the globe. The Finternet had transformed her smartphone into a powerful financial hub, bringing the global economy to her fingertips.
Amira’s seamless experience is not a far-fetched dream, but a glimpse into the near future promised by the Finternet. Just as the Internet revolutionized information access, the Finternet stands poised to redefine our relationship with money and financial services.
What if every citizen of the world could access a full suite of financial services without ever stepping into a bank? What if businesses could trade internationally with the ease of sending a text message? What if your financial identity could travel with you, recognized and trusted anywhere in the world?
These questions form the core of our exploration into the Finternet. In this article, we’ll unpack how this concept aims to break down the barriers of traditional finance, democratize access to financial services access, and create a global, interoperable financial ecosystem.
Here I’m taking a modular approach of understanding what Finternet truly stands for exploring the technology behind the Finternet, its potential impacts on individuals, businesses, and entire economies, and the challenges that lie ahead in bringing this vision to life.
From the streets of Kanpur to the boardrooms of Wall Street, the Finternet promises to rewrite the rules of finance. Join us as we understand this next trillion-dollar disruption — a transformation you can’t afford to miss.
“The secret of change is to focus all of your energy not on fighting the old, but on building the new.” — Socrates
Current state of the global financial system
You may think, ain’t the current fintechs with the banks are a part of the Finternet? How is it different?
While current fintechs and banks are indeed part of the digital financial ecosystem, the Finternet vision goes beyond what exists today. It addresses the major flaws with the speed, cost, and accessibility of the current financial system.
Let’s explore some practical, scenarios on how the Finternet would work:
1. Global Interoperability
Maya, an Indian software developer, wants to send money to her brother studying in the US. She uses a fintech app to transfer money, but it takes 2–3 days and incurs significant fees due to multiple intermediaries.
With Finternet: Maya opens her Finternet-enabled banking app. She selects her brother’s Finternet ID (similar to an email address but for finance). The app shows her real-time exchange rates and a nominal fee. She confirms the transaction, and within seconds, her brother receives a notification that the money is available in his US bank account. The entire process is near-instantaneous and costs a fraction of traditional methods.
2. Asset Tokenization and Fractional Ownership
Devika, a middle-class investor in Chennai, has always dreamed of owning a piece of prime New York but doesn’t have enough capital for a full property.
With Finternet: Devika logs into his Finternet investment app. She browses tokenized real estate offerings and decides to invest ₹50,000 in a fractional share of commercial property in a Manhattan Skyscraper. The transaction is executed instantly, and Devika receives a digital token representing his ownership. She can track the property’s performance, receive her share of rental income, and easily sell her fraction if needed — all within the same app.
In the past, this would have remained just that — a dream. But in the world of the Finternet, Devika can buy a token representing a fraction of a Manhattan skyscraper, all from her smartphone.
3. Unified KYC and Seamless Service Access
Amy moves to a new city for work. She needs to open a new bank account, apply for a credit card, and get insurance. Each process requires separate KYC verifications and takes days.
With Finternet: Amy has a verified Finternet identity linked to her national digital ID. When she moves, she simply updates her address once in her Finternet profile. She can then instantly open accounts with any Finternet-compatible financial service provider. Her identity, credit history, and other relevant information are securely shared (with her consent) across the Finternet ecosystem, eliminating repetitive KYC processes.
4. Smart Contract-based Micro-insurance
Farmers in rural areas struggle to get crop insurance due to high administrative costs for insurance companies and complex claim processes.
With Finternet: A group of farmers uses a Finternet-based micro-insurance platform. They purchase parametric crop insurance using tokenized money. Smart contracts (executable code on a public blockchain ledger) are linked to local weather data. If rainfall falls below a predefined threshold, the smart contract automatically triggers payouts to the farmers’ Finternet wallets without any need for claims processing.
5. Cross-border Business Transactions
Small business owner Aisha wants to import raw materials from China but finds the process of international payments, currency conversion, and trade finance cumbersome and expensive.
With Finternet: Aisha uses a Finternet-based trade platform. She places an order with her Chinese supplier, who also uses the Finternet. The platform automatically handles currency conversion at real-time rates. A smart contract escrow system ensures that payment is only released when shipping confirmation is received. The entire process — from order to payment to shipping tracking — is managed within one integrated system, reducing costs and increasing efficiency.
It’s not just about digitizing existing processes, but reimagining financial services in a tokenized, programmable, and globally connected environment.
Think of it as the financial equivalent of what the Internet did for information. Just as the Internet connected disparate computer networks into a global system, the Finternet aims to connect various financial systems, services, and assets into a unified, global financial ecosystem.
The Seeds of a Financial Revolution
It’s 1967, and a crowd gathers outside a Barclays Bank branch in London. They’re not there for a protest or a celebrity sighting. No, they’re witnessing the birth of a financial revolution — the unveiling of the world’s first ATM. As people watch in awe, cash emerges from a machine, no human teller in sight. Little did they know, this was just the beginning.
Fast forward to the late 1990s. A young engineer named Max Levchin is tinkering in his makeshift office, dreaming of a way to transfer money as easily as sending an email. His creation, PayPal, would soon change the face of online transactions, making e-commerce accessible to millions. But the real game-changer was brewing in an unlikely place — Kenya. In 2007, as Silicon Valley was busy creating the next big social network, Vodafone launched M-PESA, a mobile money service that would bring financial services to millions of unbanked Kenyans. Suddenly, people who had never set foot in a bank branch were managing their finances with nothing more than a basic mobile phone.
These innovations weren’t just about convenience; they were about inclusion, about bringing the power of finance to the masses. They taught us a crucial lesson: technology, when applied thoughtfully, can leap over traditional barriers and reach the unreached.
As we entered the 2010s, the pace of innovation accelerated. In India, a quiet revolution was underway. The launch of Aadhaar, a biometric identity system, laid the groundwork for what would become one of the world’s most ambitious financial inclusion projects. By 2016, the Unified Payments Interface (UPI) was born, allowing instant bank-to-bank transfers with nothing more than a mobile phone.
Meanwhile, in the West, companies like Square were turning smartphones into point-of-sale terminals, democratizing card acceptance for small businesses. Apple Pay made paying with your phone as simple as a fingerprint or a glance.
Each of these innovations built upon the last, teaching us valuable lessons along the way. From PayPal, we learned the power of simplifying user experience. M-PESA showed us that financial services don’t need brick-and-mortar banks to thrive. UPI demonstrated the transformative potential of open, interoperable systems backed by regulatory support.
But perhaps the most important lesson came from Bitcoin, introduced in 2009. It wasn’t just a new form of money; it was a radical rethinking of how value could be transferred in the digital age. Bitcoin and the blockchain technology underpinning it sparked a global conversation about the future of money and finance.
As we stand here today, on the cusp of the Finternet revolution, we carry these lessons with us. We’ve learned that true innovation puts the user first, that interoperability is key, and that with the right technology, we can create financial systems that are more inclusive, efficient, and fair than ever before.
The story of digital finance is a story of human ingenuity, It’s a story of breaking down barriers, and bringing financial power to the palms of people’s hands.
Rather than replacing existing systems entirely, Finternet builds upon and enhances current financial infrastructure. Like UPI, which built on existing banking systems while adding new capabilities, Finternet integrates new technologies such as tokenization with existing central bank and commercial banking systems. This approach ensures a smooth transition to a more advanced financial ecosystem while maintaining the stability of core financial structures.
These core principles form the DNA of Finternet — a system that respects the strengths of traditional finance while harnessing the power of digital innovation to create a faster, more inclusive, and more efficient financial future for all.
Key technologies enabling the Finternet
At the heart of this financial metropolis-in-the-making lies tokenization, a concept as transformative to finance as the invention of the corporation was to business. Tokenization is like financial alchemy, turning every asset — be it a share in a company, a piece of real estate, or even your reputation — into a digital token that can be easily traded, divided, or combined.
Devika from Chennai can now own real estate in New York through tokenization. This method is not just changing what we can own; it’s redefining the very concept of ownership itself.
Traditionally, our financial system has kept asset information and transaction capabilities separate. Think of a land registry and the process of selling a property — two distinct systems that must interact. Tokenization changes this process entirely. It creates digital representations of assets that contain not just ownership details, but also the rules and logic governing their transfer. This seemingly simple shift has profound implications.
In the tokenized world of Finternet, financial transactions undergo a radical transformation. Gone are the days of complex message chains bouncing between institutions. Instead, the tokens themselves become the medium of exchange, carrying all necessary information for the trade. This streamlined approach tackles many of the bottlenecks plaguing our current system.
While intermediaries don’t disappear in this new landscape, their role evolves significantly. Rather than acting as record-keepers, they become guardians of the rules governing token transfers. This shift brings numerous benefits:
- Atomic Settlement: Multiple parts of a transaction can be settled simultaneously, reducing risks and collateral needs.
- Programmability: Complex, conditional financial transactions that were once impractical become possible.
- Composability: Multiple transactions can be bundled together, opening doors for creative financial products.
These features of tokenization lay the groundwork for a financial ecosystem that is faster, more efficient, and ripe with possibilities for new ways to save, invest, and insure.
These tokens need a place to live and move, which brings us to our next technology: Distributed Ledger Technology (DLT), with blockchain being its most famous embodiment. If tokenization is the population of our financial city, DLT is its transportation system — a vast, interconnected network that allows value to flow freely and securely. DLT is to traditional financial record-keeping what the internet was to libraries. Instead of information being stored in one central location, it’s distributed across a network of computers, each keeping an identical, unalterable record. In a DLT world, trust isn’t placed in central authorities but in mathematics and consensus.
Let’s consider Alejandro, a coffee farmer in Colombia. In the current system, when he sells his beans to a buyer in Japan, the transaction goes through a complex web of intermediaries, each adding time and cost. With a public blockchain (DLT), this trade could happen directly, securely, and almost instantly, with every step of the journey tracked and verified by the network.
But the Finternet isn’t just about moving money faster; it’s about making money smarter. Enter smart contracts, self-executing agreements with the terms directly written into code. Imagine if Alejandro’s sale contract automatically released payment when sensors confirmed his coffee beans had arrived at the Japanese port, all without any human intervention.
There are some Interoperability Protocols which are essentially the “translators” of the Finternet, allowing different blockchain networks, traditional financial systems, and various digital assets to communicate and interact seamlessly (APIs).
These technologies are powerful on their own, but their true potential emerges when they converge. Tokenization creates digital assets, blockchains provides the infrastructure for them to move, and smart contracts automate their behavior. Together, they form a new financial operating system that’s global, 24/7, and programmable.
Of course, none of this matters if it’s not secure. That’s where advances in cryptography come in, providing the locks and keys that keep our digital assets safe. Things like zero-knowledge proofs allow us to verify information without revealing it.
As we stand, it’s clear that these technologies are more than just incremental improvements. They’re the foundation of a new financial architecture, one that promises to be more inclusive, efficient, and fair than anything we’ve seen before. The road ahead isn’t without challenges. Questions of scalability, energy consumption, and regulatory compliance loom large.
Next, we’ll look at the technical architecture of how the Finternet works. Even if you’re new to this, it’s worth reading through. Understanding how a system is built can increase your trust in it. Let’s break down the Finternet’s architecture in simple terms.
Unified Ledgers
At its core, a unified ledger is like a super-powered, all-in-one financial layer. It’s where your money, investments, and other financial assets live side by side in digital form. But it’s so much more than just a fancy bank account.
Just like a Swiss army knife, this combines multiple functions in one compact package, unified ledgers bring together all the pieces needed for any financial transaction. Your money, the thing you’re buying or selling, the rules of the transaction — they’re all right there, ready to run.
What makes this really special is how these digital assets behave. They’re not just static numbers on a screen. They’re programmed to move, change, and interact based on your instructions. Want to buy shares in a company? In today’s world, that involves a complex dance of messages between banks, brokers, and other middlemen. With unified ledgers, it’s more like your money and the shares do a quick handshake, and boom — transaction complete.
At the heart of the Finternet’s unified ledgers lies a two-tier money system, much like what we have today:
- Central Bank Money: The Foundation
- Wholesale: Think of this as the bedrock of the entire system. When banks settle accounts with each other, they do it using the central bank’s money. In the Finternet, this becomes “tokenized wholesale central bank money.” It’s digital, more flexible, but serves the same crucial role as today’s reserves.
- Retail: Some central banks might also offer a digital version of cash directly to the public. Imagine it as a high-tech cousin of the banknotes in your wallet.
2. Commercial Bank Money: The Everyday Layer
- This is the money in your bank account, but with a digital twist. On unified ledgers, it becomes “tokenized deposits.”
- It’s what most people and businesses will use for daily transactions, just like how we use our bank accounts today.
This setup ensures that the new digital system maintains the stability and trust of our current financial world while unlocking new possibilities. The central bank keeps its critical role as the anchor of the system, while commercial banks continue to serve as the main interface for most users, but with enhanced digital capabilities.
By making transactions faster and cheaper, unified ledgers could open up a whole new world of financial services to people who’ve been left out of the system. Imagine a small farmer in a developing country getting access to crop insurance, or a gig worker easily managing multiple income streams — all through their smartphones.
Now, you might be wondering: “Aren’t these unified ledgers just blockchains by another name?”
While they share some DNA, unified ledgers and blockchains have some differences. Think of blockchains as the rebellious cousin in the family of digital ledgers — great for cryptocurrencies, but not always playing well with traditional finance.
Unified ledgers, on the other hand, are the diplomats. They take some of blockchain’s best ideas — like advanced cryptography, digital assets, and smart contracts — but tailor them to work smoothly with our existing financial system. Unlike many blockchains, unified ledgers are designed from the ground up to follow financial regulations, work with central banks, and handle traditional assets like government-issued money. They’re built to be faster, more efficient, and more adaptable to the needs of banks, businesses, and everyday users in our current financial world.
Lets take this example from the Finternet paper itself and try to understand in a simpler manner.
Maria wants to buy some shares in a company. Here’s how it works now vs. how it could work with a unified ledger.
Today’s Way: Think of Maria’s share purchase like a game of telephone, but with money.
- Maria tells her broker she wants to buy shares.
- The broker talks to a bunch of other people to find the shares.
- Meanwhile, Maria’s bank, the seller’s bank, and several other banks and institutions start passing messages back and forth.
- They’re all checking things like: “Does Maria have the money?” “Are the shares real?” “Is everyone who they say they are?”
- This back-and-forth can take days. If any message gets mixed up, they might have to start all over again.
It’s like trying to organize a group dinner where everyone has to call each other individually to confirm the plans. Complicated, right?
The Unified Ledger Way: Now, imagine if everyone was in the same room, talking at once. That’s kind of like a unified ledger.
- Maria says, “I want to buy these shares.”
- The ledger instantly checks:
- Yes, Maria has the money (it’s right there in her digital wallet).
- Yes, the shares exist (they’re also on the ledger).
- Yes, everyone involved is who they say they are (their identities are verified on the ledger).
3. In one smooth move, the money leaves Maria’s account, the shares enter her digital wallet, and the seller gets paid.
It’s like everyone agreeing on dinner plans in a group chat — quick, simple, and everyone’s on the same page.
The big difference? With a unified ledger, what used to take days now happens almost instantly. There’s less chance for mix-ups, it’s more secure, and it’s a lot less hassle for everyone involved. It’s turning a complex juggling act into a simple handshake.
How it would feel like — The User Flow
- Account Creation:
- Users (individuals or businesses) can create accounts on any unified ledger of their choice.
- Multiple accounts across different ledgers are possible.
- Each account gets a human-readable, globally resolvable virtual address.
2. Identity and Authentication:
- Users establish a trusted digital identity using verifiable credentials.
- They can set up customized authentication methods for each account.
- The “submit once” approach eliminates repetitive KYC processes.
3. Asset Management:
- Users can tokenize their assets through token managers.
- Tokens represent a wide range of assets, from money to real estate to digital goods.
- Each token contains core data and metadata about the asset and applicable rules.
4. Transactions:
- Users can send or receive any type of tokenized asset.
- Transactions occur seamlessly across different ledgers thanks to the unified interledger protocol.
- Smart contracts automate and secure complex transactions.
5. Enhanced Services:
- Trust service providers (attestors, verifiers, etc.) add extra layers of security and credibility.
- Users have unprecedented control over their financial data and transactions.
- They can choose what information to reveal and to whom.
- Various devices can be used for authorizing transactions.
In practice, a user’s experience might look like this:
Sarah opens the Finternet app on her smartphone, logs in using her fingerprint, and sees a dashboard of all her tokenized assets.
With a few taps, she can invest in fractional real estate, send money internationally, or set up a smart contract for her small business — all with real-time execution and without the need for multiple intermediaries.
The system’s built-in compliance checks and security measures work silently in the background, ensuring each action is safe, legal, and in line with Sarah’s predefined preferences.
Token managers are the gatekeepers of asset digitization on the Finternet.
- They ensure all tokens adhere to relevant laws and regulations.
- Token managers can maintain their own ledgers alongside the Finternet, syncing data between systems. This allows them to issue tokens using their existing processes, easing adoption.
- Asset Security: They provide mechanisms to reproduce or recover tokens if lost, adding a crucial safety net for users.
- Bridging Digital and Traditional: By handling both digital and traditional assets, token managers make the Finternet accessible to a wide range of users and use cases.
- User Empowerment: Individuals can act as their own token managers for self-created assets, giving users direct control over their digital representations.
- System Integrity: A key safeguard is that users can only create tokens for themselves, not for others. This prevents unauthorized token creation and maintains the system’s trustworthiness.
Is There a Dark Side? Addressing Fraud in the Finternet
Financial fraud remains a significant concern in any financial system, and the Finternet is no exception. However, it incorporates several advanced features to mitigate these risks:
- Multi-Layered Identity Verification: The Finternet employs a robust identity verification system that combines biometric data, digital signatures, and real-time authentication. This multi-factor approach significantly reduces the risk of unauthorized access, even if individual credentials are compromised.
- Continuous Transaction Monitoring: Advanced algorithms constantly analyze transaction patterns, flagging unusual activities for immediate review. This real-time monitoring helps detect and prevent fraudulent transactions before they can be completed.
- Immutable Ledger Technology: The Finternet’s use of immutable ledger technology ensures that once a transaction is recorded, it cannot be altered or deleted. This provides a tamper-proof audit trail, crucial for detecting and investigating any attempts at fraud.
- Regulatory Compliance Automation: Smart contracts automatically enforce regulatory requirements, including Know Your Customer (KYC) and Anti-Money Laundering (AML) standards. This automation reduces the risk of human error and ensures consistent application of compliance measures.
- User Education and Awareness: Recognizing that technology alone is not sufficient, the Finternet incorporates comprehensive user education programs. These initiatives aim to inform users about potential fraud risks and best practices for safeguarding their financial activities.
- Behavioral Analytics: Sophisticated behavioral analysis tools are employed to identify patterns indicative of social engineering attacks or other fraudulent activities, triggering additional security measures when suspicious behavior is detected.
- Dynamic Permission Settings: The system implements dynamic permission settings for transactions, adjusting security requirements based on the nature and risk level of each transaction. This adaptive approach provides an additional layer of protection for high-risk activities.
While no system can claim to be entirely fraud-proof, these comprehensive measures significantly enhance the security and integrity of financial transactions within the Finternet ecosystem. The combination of advanced technology and user empowerment creates a robust defense against various forms of financial fraud.
Hurdles — The Bearish Side of Finternet
As enticing as the vision of the Finternet is, the path to its realization is fraught with challenges. Like any paradigm shift, it faces hurdles that span regulatory, technical, and cultural domains.
Regulatory and Legal Considerations
The global regtech market was valued at USD 12.82 billion in 2023 and is projected to grow from USD 15.80 billion in 2024 and reach USD 85.92 billion by 2032
The financial sector is one of the most heavily regulated industries, and for good reason. Money is the lifeblood of economies, and its mismanagement can have catastrophic consequences. As we’ve seen with cryptocurrencies, new financial technologies often operate in regulatory gray areas, creating uncertainty for both innovators and users.
The Finternet, with its global reach and novel financial instruments, presents a regulatory puzzle of unprecedented complexity. How do we ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations in a system designed for borderless transactions? How do we protect consumers and maintain financial stability in a world of programmable money and smart contracts?
Take, for instance, the concept of tokenized securities. In the U.S., securities are regulated by the Securities and Exchange Commission (SEC), but what happens when a token representing a share in a U.S. company is traded on a decentralized exchange hosted in Singapore and bought by an investor in Nigeria? Which laws apply? How are they enforced for each geography?
Moreover, the legal status of smart contracts remains unclear in many jurisdictions. Are they legally binding? How do we handle disputes? These questions need clear answers before the Finternet can achieve mainstream adoption.
The solution likely lies in a combination of updating existing regulations to account for new technologies and creating new, purpose-built regulatory frameworks. This will require unprecedented cooperation between regulators across different countries and sectors. Initiatives like regulatory sandboxes, which allow for controlled testing of new financial technologies, could play a crucial role in this process.
Technical Hurdles
On the technical front, the challenges are equally daunting. While individual technologies like blockchain and smart contracts have shown promise, scaling them to handle the volume and speed required for a global financial system is no small feat.
Consider the current state of blockchain technology. Bitcoin, the most well-known blockchain network, can process about 7 transactions per second. Ethereum at 12–15 TPS, and Solana which has claims of 65k TPS in theory, though it manages to do only 3–5k TPS with ~1k real-time TPS (without voting TXs).
Visa, on the other hand, can handle tens of thousands. For the Finternet to be viable, we need solutions that can match or exceed the performance of current financial infrastructure while maintaining security and sufficient decentralization.
Interoperability is another major technical challenge. The Finternet envisions a world where different blockchain networks, traditional banking systems, and various digital assets can seamlessly interact with the help of Unified Interledger Protocol (UILP). However, these different systems use different protocols and data structures, making integration a complex task.
Energy consumption is yet another concern. The environmental impact of Bitcoin mining has been widely criticized, and a global financial system built on similar technology would be unsustainable. More energy-efficient consensus mechanisms like proof-of-stake and proof-of-history are promising, but they come with their own set of challenges and trade-offs.
Adoption and Change Management
Even if we solve the regulatory and technical challenges, we still face the monumental task of driving adoption. The financial system is deeply ingrained in our societies and economies, and changing it requires more than just superior technology — it requires a shift in mindset and behavior.
Banks, payment processors, and other financial institutions have invested heavily in their current infrastructure. Convincing them to adopt new systems that might disrupt their existing business models will be an uphill battle. There’s also the question of legacy systems — how do we ensure a smooth transition without disrupting critical financial services?
On the user side, we need to consider the learning curve associated with new financial technologies. How do we make complex concepts like tokenization and smart contracts accessible to the average person? How do we ensure that the benefits of the Finternet reach not just the tech-savvy, but also those who are currently excluded from the financial system?
Education will play a crucial role here. We need comprehensive programs to help individuals and businesses understand and leverage these new financial tools. User experience design will also be critical — the interfaces of Finternet applications need to be intuitive enough for anyone to use, regardless of their technical background.
Interoperability with Legacy Systems
Lastly, we can’t ignore the reality that the Finternet won’t replace how the existing financial system works overnight. For a considerable time, it will need to coexist and interact with legacy systems. This presents its own set of challenges.
How do we create bridges between traditional bank accounts and tokenized assets? How do we ensure that transactions between old and new systems are secure, efficient, and compliant with regulations? These questions don’t have easy answers, but they’re crucial to address for the gradual, sustainable adoption of the Finternet.
We’re already seeing some promising developments in this area. For example, some central banks are exploring the issuance of Central Bank Digital Currencies (CBDCs) as a way to bridge traditional monetary systems with new digital finance paradigms. Projects like Ripple’s RippleNet are working on creating interoperable payment networks that can work with both blockchain-based systems and traditional banking infrastructure.
The road to implementing the Finternet is long and challenging, but not insurmountable. It will require collaboration between technologists, regulators, financial institutions, and end-users. It will demand innovative solutions to complex problems, and a willingness to rethink fundamental aspects of our financial system.
Top 10 Finternet Apps Ideas
The concept of building private layers on top of public infrastructure is a powerful standard, as demonstrated by India’s UPI and ONDC initiatives. This approach allows for innovation and competition in the private sector while maintaining a standardized, interoperable base layer.
The Finternet, like UPI or ONDC, would provide a public, standardized infrastructure layer. Private companies could then build applications and services on top of this layer, leveraging its interoperability and security while adding their unique value propositions.
Let’s explore how this could work with the Finternet and some potential use cases.
- A Finance Super app
In most places, over 50 percent of the GDP of the country is flowing [through a digital payments ecosystem]. In Kenya it’s about 70 percent. — McKinsey & Company
Think of it like merging the superpowers of M-Pesa + WeChat together.
- Integrates with local businesses for payments and financial services
- Uses Finternet’s unified ledger for instant, low-cost transactions
With Finternet it can:
- Enable seamless integration of various financial services
- Provide secure, verifiable identity management
- Allow for micro-transactions and fractional asset ownership
2. An Inclusive Investment Platform
Robinhood democratized stock trading for millennials. An Inclusive Investment Platform on Finternet could do the same for a global audience across multiple asset classes.
- Offers fractional ownership in diverse assets (stocks, real estate, commodities)
- Uses tokenization for easy division and transfer of asset ownership
- Implements AI-driven risk assessment and portfolio management
Why Finternet fits:
- Tokenization allows for small-scale investments
- Unified ledger ensures transparent, real-time settlement
- Cross-border capabilities open up global investment opportunities
3. Borderless Freelance Work Platform
Implementation:
- Smart contracts for project milestones and payments
- Integrated reputation system using verifiable credentials
- Currency-agnostic payments with automatic conversion
Why Finternet?
- Enables instant, low-cost cross-border payments
- Provides secure identity verification for both freelancers and clients
- Allows for escrow services and conditional payments through smart contracts
Upwork facilitates global freelancing but faces challenges with payment processing and fees. A Finternet-based platform could significantly reduce these friction points.
Superteam Earn, a web3 native talent platform, can give a glimpse into the potential of a Finternet-based freelance platform. It connects crypto projects with skilled professionals globally, focusing on bounties and task-based work and people have earned ~$1M+ through the platform.
4. Sustainable Finance and Carbon Trading Platform
The European Union Emissions Trading System handles billions in carbon credit trades annually but faces issues with fraud and market manipulation. A Finternet-based system could address these concerns.
Implementation:
- Tokenized carbon credits for easy trading and retirement
- Real-time monitoring and verification of sustainability projects
- Green bond issuance and management
Where Finternet fits:
- Immutable ledger ensures transparency in carbon credit lifecycle
- Tokenization allows for fractional carbon credit trading
- Smart contracts can automate compliance with sustainability standards
5. Integrated Health and Financial Wellness Platform
Discovery’s Vitality program in South Africa links health behaviors to financial rewards. A Finternet-based platform could expand this concept globally with more sophisticated, real-time integrations.
Implementation:
- Health data integration with financial planning tools
- Micro-insurance products based on personal health metrics
- Incentive programs for healthy behaviors linked to financial rewards
With Finternet:
- Secure sharing of sensitive health data through verifiable credentials
- Programmable money allows for automatic health-linked financial incentives
- Tokenization enables novel health-finance hybrid products
6. Integrated Supply Chain Finance Platform
Tradeshift has handled over $1 trillion in trade transactions but still faces issues with payment delays. A Finternet-based solution could significantly reduce payment times and financing costs.
Implementation:
- Real-time tracking of goods linked to automatic payments
- Dynamic pricing for supply chain financing based on real-time data
- Tokenized inventory for collateralized lending
Why Finternet:
- Smart contracts enable conditional, partial payments based on supply chain events
- Unified ledger provides a single source of truth for all parties
- Tokenization allows for more flexible financing options.
7. Cross-Border B2B Payment Network
SWIFT handles millions of cross-border payments daily but is criticized for high costs and slow processing. A Finternet-based network could offer significant improvements in speed and cost.
Implementation:
- Multi-currency accounts with real-time forex conversion
- Automated compliance checks for international transactions
- Integration with existing banking and ERP systems
With Finternet:
- Unified ledger enables near-instant settlement across borders.
- Tokenized fiat currencies can reduce forex costs and risks
- Smart contracts can automate complex multi-party transactions
Conclusion
Think back to the early days of the iPhone. It wasn’t just a new gadget, it created a platform that revolutionized mobile computing and spawned entire industries. The Finternet holds that same transformative potential. But unlike the closed ecosystem of smartphones, it’s building on the principle of open, public infrastructure — a financial operating system for the world.
The beauty of the Finternet lies in its layered approach. The public layer — built on principles of openness, interoperability, and universal access — sets the stage. But it’s the private layer built atop this foundation that will drive innovation at an unprecedented scale. Just as UPI in India spawned an entire ecosystem of innovative payment apps, the Finternet could birth financial services we’ve yet to conceive.
But here’s the real question: Are we ready for this shift? Are we prepared for a world where traditional financial boundaries blur, where banking becomes invisible yet omnipresent, and where your financial identity travels with you seamlessly across borders?
Those who grasp the magnitude of this shift — be they entrepreneurs, policymakers, or everyday users — will be the architects of this new financial world. The Finternet provides the blueprint. The rest is up to us. The question isn’t whether you’ll participate in this revolution, but how.
Will you be a spectator in this new financial world, or will you help shape it?
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And there you have it — a journey through the Finternet using a fresh storytelling approach I tried for the first time. I hope these examples and visualizations have helped bring these complex concepts to life for you. While this piece originated from a bounty, I found myself genuinely engrossed in exploring and explaining these ideas.
The beauty of Finternet lies in its universality, much like this essay aims to be. Whether you’re a seasoned expert or new to these concepts, I hope you’ve gained some valuable insights.
If you found this helpful, I’d be thrilled if you could share it on Twitter or with friends who might benefit. Your feedback and suggestions are always welcome — feel free to reach out to me at @inSitesh on Twitter/X.
Thank you for joining me on this exploration of the financial future!
The Finternet concept was introduced in the paper “Finternet: the financial system for the future” by Agustín Carstens and Nandan Nilekani. This visionary idea, further developed by experts like Siddharth Shetty, aims to reimagine the global financial landscape for the digital age. You can find the papers and the reading materials in the following links.
