by: Don Ginsel
The capitalist world is driven by the knowledge gap between people making trades. This enables a difference in perceived value of a trade that drives traders to both feel good about a deal. Likewise in finance, where the financial knowledge gap is driving profits for the financial industry. This financial knowledge gap has increased extremely over the past decades, due to ever increasing financial complexity, without better education or tools to make sense of it. This development is causing both increasing income in the financial industry as well as increasing dissatisfaction with non-financial industry people with the sector.
In the current up rise of technology, delivering unlimited connectivity and enterprise scale computing power via everyone smartphone, a large group of people is enabled to be better informed about finance than ever before. The rise of FinTech is now also providing an increasing number of tools that enable people to manage their own commerce and finance with ever decreasing interference of financial institutions or advisors. Besides such DIY tools, it is also a fact that many tech solutions are so well developed from the end user’s perspective (UX focused) and highly time and cost efficient. That alone drives a whole new culture in buying behaviour of consumers and entrepreneurs that hardly fits with traditional corporate culture. People are beginning to expect better service and tools from their existing brand relationships, especially when they are dominantly information driven.
The financial industry is the largest commercial industry driven by information only, and therefore a logical focus for these changes. But the public sector is also up for disruption, touching and potentially changing the democratic system altogether.
The next part will cover the new power of technology, the shift from legal to tech as language of power and the required self-criticism as power of FinTech companies increases, to keep focus on Transparency, Efficiency and Accessibility of finance
Editors Notes: This entry has been submitted to the FINTECH Book, the world’s 1st globally crowd-sourced book on FINTECH. Readers that enjoyed this initial abstract are invited to share and like it so that it may be featured in a longer version.