Future of Financial engineering ?

I was recently talking with the Executive Director of MFE Program - John O'Brien about what he thought was the future trends in financial engineering. The general sense is that the same innovations that took place for the past 20 years in the institutional markets will soon be applied to the retail and personal investing market, i.e. for individual investors. Similarly, Corporate finance will employ more and more FE to hedge company wide risks. Of course, newer markets and products are always opening up - energy, weather, hybrid securities, ABS, MBS, etc; which would require advanced FE to price and sell.

Readers, any more thoughts on this...? Leave comments.