Bitcoin, Buzzwords and the Gamification of Finance. A Futurist Explains

In this episode, Rianka speaks with Dani Fava, Head of Strategic Development at Envestnet and self-proclaimed futurist.

Dani shares her insights into how the world- and color-of money has changed and her warning for experts who continue to speak from the same echo-chamber, serving new clients with old philosophies.

Dani uses cryptocurrency as an example. She shares that Bitcoin was created out of the 2008 financial crisis, rising from the distrust of the global financial economy. Bitcoin founders were paying attention to the crumbling of these previously trusted financial institutions, and created a solution to decentralize currency...putting the governing control of money inside of code. This is an extremely tangible example of how the world is changing.

She discusses the evolution of financial language and how buzzwords pop-up from nowhere, but are usually rooted in larger and systemic issues. Words that have existed for a long time in finance begin to change meaning, as well. Years ago, the term “performance” was only associated as a financial number (e.g. portfolio value change in dollars)… now it might relate to the impact one’s portfolio is having in improving diversity, climate change, and more, oftentimes referred to as ESG (environment, societal and governance) investing.

Advisor-client relationships are also undergoing a sea change: clients are now looking for social-impact, racial justice portfolios; feelings around retirement are evolving. Dani shares that in the future we might actually drop the word “financial” and keep only “Advisor” because the advice has morphed beyond strictly financial; lives are now intertwined.

Dani also shares predictions for how AI will transform the investor-client relationship, the danger in using words that people don’t understand and gender-pronoun biases, and inviting more people into financial wellness.