Why Open Portal Investing (OPI) is the Fin-tech revolution that will shape the investing landscape for the years to come
At the annual World Economic Forum in Davos, Switzerland 2018, the upper tech experts from Alphabet, IBM, GitHub, Oracle, Salesforce, Uber, and othersspoke about the revolution of predictive sciences, artificial intelligence and data-driven computing.
Tech is shaping the global economy today. Everybody agrees that AI evolves and companies now full embrace data-driven strategies in the cloud and start to bake intelligence into their experiences. Besides the usual suspects; autonomous driving cars, chatbots, natural voice and virtuals assistants, some other possibility came up. What happens if you merge the Creative crowd, AI and Invest trading to one?
What happens if you merge the creative crowd, AI and the financial world into one?
The birth of OPI
While everybody was talking in Davos, and McKinsey and Accenture where telling the banks they had to start with Intelligens automation instead of automation, the concept of OPI came to life. The promises of Open Portal Investing are big and could potentially shake up the world of investing and saving. Before we go into OPI and what it means, let me -in short- tell you about banks and wealth managers. Five reasons why they are out of time:
- 1: Instead of only an app, they use a huge backend organisation with extreme costs (and an app)
- 2: Instead of using the creative crowd, there ‘wealth making’ is closed, unclear and boxed.
- 3: Instead of changing with the times, they ambrace and build unnecessary regulatory walls
- 4: Instead of being there for an impact purpose, they solely go for their own
- 5: Instead of reaching all the world, they only target the wealthy, and make a small market
‘If the banks don’t get it by now, a dinosaur future is likely to emerge’
Investment banks and wealth management is traditional business. Trust, cautiousness are important. Yes they were innovative from time to time. But always in style with the five reasons mentioned above. The blow-up of the investment market in 2008 was nothing more than a leverage party: the more you can trade with lended money, the more you win. Or loose. In this case, the world lost and some bankers won. I refer to point 4 ‘They solely go for their own’.
OPI is designed from a total new perspective: Share and prosper
Like the first mutual, cooperative banks more than two hundred year ago, sharing power, creativity and knowledge is a sound bases for fundamental change. OPI’s foundation idea is shared technology, share creativity, benefit all on a individual level through low tech easy access.
Today, I mean just now, this is possible while five years ago is wasn’t. Let me tell you why in four items
- 1: Crypto market: The crypto market is a ‘rules free’ worldwide place where things can be tested. Yes a lot goes wrong. But it’s a place where innovation killing regulations don’t rule, where people with ideas instead of billions and government contact can have some space to learn and create.
- 2: Big Data and Artificial Intelligence: AI and big data turn into commodities and are reshaping everything we do. Including investing and trading. Best of all: It’s everywhere, available for all students, All gamers and most tech companies and in a lot of countries. Big data and AI are ready for use in the worldwide ecosystem.
- 3: FX, High frequency Trading: Democratizing of trading algorithms started with High frequency trading (HFT) and Forex trading. Millions of people all over the world try their luck with FX trading. Some win, most don’t and most of the code of the algoś does not exceed the wisdom you could find in the trading section in your local library twenty years ago. But a bases of sharing and trading algorithms by the crowd was made.
- 4: Apps and smartphones: What a smartphone and a app does is bringing cutting edge high tech to the masses without bothering them while doing so.
What happens in the world starts with an app. Facebook played a huge role for fugitives in the Siria. Airbnb moves cities, more bands than ever play now all over the world thanks to Spotify. We all are addicted to the smartphone.
What are the possibilities for the future? Will a self-conscious digital investor arise who makes us all rich?
There are some things I am safe to say that will happen. Two of which have a big impact on today’s markets. One is the enormous upgrade in market efficiency and the other is de common availability of that efficiency. It is a hard to capture new reality; AI, big data and open platforms will rule the financial markets. Closed systems are just not fast enough. Social impact does not stop with access to the most intelligent financial investing for all with a smartphone. It will create demand for new exchanges and It will open up the way we all get access to finance. It might call in the end off the IPO (Innitial Public Offering) as we know it. Spotify did already set the first steps.
A self conscious system? well, more a self organizing world wide ecosystem. Ecosystems such as Github, Youtube, AirBNB, But also Android and App store are in my opinion natural follow ups of the ability to share and create through internet. The existence of internet is essential, it’s in people’s nature to explore this big social invention. We only have just started with internet! It’s not more than thirty years old. Banks for example, still just digitalize what they already were doing before internet.
Weonly have just started with internet!
Everything is going to change propulsed by what I call the three musketeers: Personal Internet (mainly Smartphones /personal continues connected), Artificial Intelligence (algorithms) and Big data. Both three fields are exploding in terms of lower costs, world wide reach, usability in day to day life.
What are OPI’s minimum functional requirements?
The secret of a functional OBI consists of a short list of fundamental designs. First: it is a marketplace: two sites are involved. Major criteria is worldwide easy access for both sides. An algorithm creator can be just anyone. Could be a team of Microsoft, EY, Flow Traders, MIT or a gamer who outsmarts them all. They all can test and alter algorithms by giving them loads of data. Over and over again until perfection is reached.
Very important: Algorithms are often the creation of the millions ‘puzzlers’ in the world.
Users, as in investors, expect to get going without any learning curve
Why? One of the most important ways to make next level investing algorithms is to enable to use algo’s as Lego blocks: two or even ten algorithms make one very successful trading algorithm. This leads to another design criteria: combine total sharing with total protection of intellectual property. This means: super safe code encrypting and making all kinds of files, code, libraries and machine learning able to connect and work together. Who can do this? And the end user? Users, as in investors, expect to get going without any learning curve. They expect safety and a brilliant user experience.
This all leads to Open Portal Investment (OPI) and the first real OPI company, and many to follow
Banks think they can withstand tech innovation and are often helped by government regulatories. This will hold the lines for a while, but history has proven over and over again the higher powers of innovative technologie.
The first real OPI is RevenYOU.io
Banks and investors should embrace OPI and this worldwide, open way of investing for the masses. Create a ‘worldwide, innovation and everything bigger’ department. Let the CEO be the leader. Maybe it’s not too late,
The first real OPI is RevenYOU.io. As co-founder of RevenYOU.io I also have to mention Gimmer. Gimmer is another initiative that embraces OPI elements.
In conclusion; Fintech found its Unicorn?
The financial world did not produce its groundbreaking, playing level field changing unicorn yet. There is just no fin-tech application that can even match the Wikipedia, founded 17 years ago or YOUtube, founded 13 years ago. Internet has just begun and banks and wealth managers will be replaced. Like all disruption, current players will not understand and loose the short, almost painless fight.