In 1887, Edward Bellamy’s book Looking Backward offered a vision of a utopian society transformed by cooperation and technological progress. His protagonist, Julian West, awakens in a world where a streamlined system of fairness and accessibility has replaced the inefficiencies of industrial capitalism.

As a physical and divisive entity, money has vanished, replaced by an equitable mechanism of exchange that fosters universal participation. Bellamy’s dream was bold, almost fantastical – a world where technology served humanity, not the other way around.

Fast forward to today, and Bellamy’s vision feels less like fiction and more like prophecy. We stand on the brink of a financial revolution that promises to reshape how we interact with money and how we define fairness, accessibility, and empowerment.

This transformation is driven by innovations like digital identity wallets, open finance frameworks, and regulatory advancements such as Payment Services Directive 3 (PSD3), Electronic Identification, Authentication & Trust Services Regulation 2 (eIDAS 2), the framework for access to financial data (FiDA) and the Payment Services Regulation (PSR). These aren’t just incremental updates to an old system but the building blocks of a new financial world.

Let’s take a moment to imagine this future. Picture a world where your identity and financial data are no longer scattered across banks, apps, and institutions. Instead, they’re unified in a single, secure digital wallet. This isn’t some far-off dream; it’s the promise of the eIDAS 2 wallet, an initiative by the European Union. Think of it as a digital passport that allows you to easily authenticate your identity, access services, and conduct transactions across borders. It’s not just about convenience; it’s about empowerment. For the first time, individuals, not institutions, hold the keys to their own data.

If this sounds familiar, it’s because we’ve already seen the beginnings of this shift. Digital wallets like Apple Pay, Google Pay, and WeChat Pay have changed how we interact with money, letting us store payment methods, loyalty cards, and digital identities in one place.

However, the eIDAS 2 wallet takes this concept to a new level. It’s not just a tool; it’s a game changer. Imagine being able to manage your financial life as easily as you manage your travel plans with a global passport. No more jumping through hoops, no more middlemen. Just you, in control.

This journey didn’t start overnight. It began with PSD2, which introduced the concept of open banking. For the first time, banks were required to share customer data with third-party providers under the customer’s consent. PSD3 builds on this foundation, expanding the idea to open finance.

Now, it’s not just your bank account that’s accessible; it’s your entire financial portfolio – savings, pensions, loans, investments. With FiDA, this principle goes even further, ensuring that you, not your bank or any other institution, are your data’s ultimate owner.

Here’s where it gets exciting. With the eIDAS 2 wallet, you can authenticate your identity and access a world of services in minutes. Need a loan? No problem. Want to switch banks? Easy. The days of endless paperwork and credit checks are over.

This isn’t just about convenience; it’s about dismantling the old power structures that have dominated finance for centuries. Banks and intermediaries, once the gatekeepers of the financial system, are being disintermediated. The power is shifting back to where it belongs: with the people.

But what about security? That’s where the Digital Operations Resiliency Act (DORA) and the PSR come in. This regulatory framework ensures that data sharing between financial entities is seamless and secure. Under PSR, the payment ecosystem becomes more transparent and interoperable. No more fragmented systems or hidden fees. Your data flows securely between platforms, creating a financial ecosystem that’s not just efficient but inclusive.

At the heart of all this is a profound shift in the financial paradigm. For centuries, banks and intermediaries thrived on inefficiencies, profiting from their role as gatekeepers. But today, API-driven innovations are changing the game. FinTech start-ups are creating decentralised lending platforms, automated wealth management tools, and peer-to-peer payment networks. The future belongs to those who can adapt – or risk becoming irrelevant.

Just as Bellamy’s book inspired a generation to dream of a world transformed by fairness and cooperation, we now stand at the threshold of a similar leap into the future. The tools and frameworks emerging today, from digital wallets, open finance, and regulatory advancements, are not just technological upgrades but the building blocks of a new financial paradigm. This is a world where individuals, not institutions, hold the reins, where financial systems are no longer opaque and exclusionary but transparent, inclusive, and empowering.

This isn’t just a dream; it’s a vision rapidly becoming reality. The eIDAS 2 wallet, PSD3, and FiDA are not abstract concepts; they are the enablers of a financial revolution that promises to redefine how we live, work, and interact. But this transformation is about more than convenience or efficiency; it is the promise of the new financial world: a system that is not only fairer but also more resilient, innovative, and human-centric.

Ian Gauci is the managing partner of GTG, a technology-focused corporate and commercial law firm. This article is not intended to impart legal advice, and readers are asked to seek verification of statements made before acting on them.