Multi-Everything is the Future of Finance in the New Era

Multi-Everything is the Future of Finance in the New Era

In an increasingly multipolar world, finance will be about the diversification of everything, including assets, currencies, hubs and more.

Three months into 2026, multipolarity looks well and alive, beginning with the swift US capture and replacement of former Venezuelan President Nicolás Maduro, followed by a military strike alongside Israel against Iran, which has now unfolded to an extended conflict. Despite the quick turnaround in Caracas, it remains to be seen if a favorable outcome from the war in the Middle East is a sure thing. Once seen as a decisive factor for victory, US military backing may not be as dominant anymore, with the Ukraine war being an example worthy of casting reasonable doubt.

This lack of certainty in unipolarity is arguably decades in the making and it is not limited to military terms alone. From technology, diplomacy, popular culture and beyond, Pax Americana alongside the general post-WWII system is being challenged.

The same trend applies to finance. While there has historically been a concentrated market share in a few areas across facets, diversification is now ubiquitously the norm.

Multi-Currency

One of the most consequential shifts that could play out in finance is the potential fall of the global reserve currency system.

Although the US dollar is still the most widely used currency in the world, its dominance has dwindled. Weakening persists and near term reversal may be difficult if Washington’s expansionist ambitions are to be realized. The dollar's share of global FX reserves fell to a record low 54.1 percent last year, according to Goldman Sachs. The greenback has also lost «a big chunk» of its safe haven value in 2025, said a separate ING report, as investors sought alternatives during selloffs.

It remains to be seen what could replace the almighty dollar. Gold has been a headline favorite option for fleeing to safety. Bitcoin has yet to prove its status as «digital gold» but is still popular amongst the youth. While the Chinese renminbi's (RMB) market share is limited, its usage is rapidly on the rise.

«The US dollar will remain dominant — over 80 percent of global trade financing is still cleared in dollars. That said, clients are increasingly looking to diversify into other currencies such as RMB and the euro,» said DBS CEO Tan Su Shan during a media briefing on the bank’s 2025 results last month. «For those trading with China, RMB is a natural choice for trade settlement. As global trade and investment diversify, we expect the use of RMB as a payments and investment currency to continue to grow.»

Multi-Asset

In part due to dollar weakening, investors are also seeking to diversify geographically across asset classes. Once again, US equities are still a global leader but there has been increasing interest in, for example, emerging markets like China, especially in tech and sustainability-related sectors.

«For several years, investors could feel comfortable with a US-heavy approach. In 2025, returns broadened: EM equities (+31%) and Developed Markets ex-US (+28%) outperformed the S&P 500 (+16%),» observed Charu Chanana, Saxo's chief investment strategist, in a commentary earlier this year.

«This doesn’t mean the US market is no longer attractive. It does mean that relying on one region can create unnecessary dependence on a single set of outcomes – policy, growth, earnings, and valuation trends.»

Multi-Shoring

Beyond investments, asset owners are also seeking to diversify by financial centers. During the Covid pandemic, there was a trend of rich mainland Chinese showing a preference for Singapore over Hong Kong. Switzerland remains widely favored by international wealth.

In addition to diversification among incumbent leaders, there are also emerging hubs. In Asia, for example, Taiwan has announced its ambition to establish an asset management center in Kaohsiung, while India has formed Gujarat International Finance Tec-City (GIFT City) to attract global financial institutions. Traditional financial centers also face pressure to adapt to a new environment, such as the need for effective digital asset regulations.

And as the recent US-Israel-Iran conflict demonstrates, fate can sometimes change overnight as investors have been forced to rethink the long-term outlook for Middle Eastern hubs like Dubai or Abu Dhabi.

«In this environment, clients are looking for diversification and multi-shoring,» said Amy Lo, Asia wealth management co-head at UBS, in an interview with finews.asia last year.

Multi-Banking

Even global financial institutions that pride themselves on broad footprints are not safe from disruption.

Firstly, universal financial groups that have previously benefited as one-stop shops are being challenged by specialists such as regional banks with local SME expertise or pure-play wealth managers that offer independent advice. Secondly, there is also fresh competition for traditional finance (TradFi) as a whole, with next generation clients seeking digitally native providers that can fulfil demand in areas like crypto or tokenized real-world assets.

«TradFi needs to react to tokenization and a lot of players are starting to take notice but I don't think they can kind of rely on having just an innovation team to look at this stuff,» warned Simon O’Keefe, head of digital solutions at Calastone. «They are already losing clients to the digital world and that will just grow exponentially going forward if they don't have a solution.»

Hope for Reversal or Adapt

Could there be a reversal? Could American exceptionalism persist for years to come, with the dollar remaining virtually unchallenged while the US continues to innovate and create new industry leaders for investors? Are traditional hubs able to successfully navigate through geopolitical tensions and provide balanced regulations for emerging technologies? Will the financial giants of today be able to maintain leadership through effective transformation?

Regardless of the outcome, hope is obviously not an action plan and inaction is too risky.

Like their clients, banks need to adapt to a «multi-everything» era to hedge their bets. This means broadening their product offerings across currencies and assets. It also means expanding strategically, including to onshore markets where there is a scalable option or competitive edge. And serving next generation clients will require more than just lip service, with many already exploring investments in separately operated ventures that are not burdened by legacy issues.