Crowd2Fund has claimed that the Covid-19 crisis will accelerate the decentralisation of financial services.
The peer-to-peer lender said that the rise in working from home has given people more time, while the lockdown has meant that many have been saving more money.
It said Google has seen a 46 per cent increase in searches for financial services and wealth management apps over the last few months alone.
Crowd2Fund also noted the recent GameStop phenomenon – where retail investors purchased shares in the firm in protest against what they saw as unethical shorting activities by hedge funds. It said that the this demonstrated the “power of technology and community”.
“Decentralisation of financial services is good because it means that more people have access to these services and markets,” the platform said in a blog on its website.
“It is positive for the financial service sector which by adopting decentralised models can operate much more efficiently, in a more compliant way, and fairer.
“We believe that 90 per cent of a bank’s operation can ultimately be automated through technology, machine learning, and AI. Human judgement in financial services is critical and this is where decentralisation to a crowd or group of individuals is key.
“Crucially, if presented with the correct information, a democratic decision can be better judged than one from a few individuals – often in non-diverse settings such as bank’s boards or investment committees.”
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Crowd2Fund said its Reboot Britain plan outlines a roadmap for the deployment of its P2P business lending platform across the 54 Commonwealth markets to provide borrowers and investors that lack a smartphone or internet connection access to financial services.
The platform said that compliance and good regulation are critical to the successful rollout of new financial technology around the world.
Crowd2Fund added that new credit policies can also ensure capital is channelled to solve global challenges, such as climate change.
“As we emerge from this dystopian pandemic world, we’re optimistic about the new opportunities that will open up,” the platform said in the blog.
“We remain positive about the emergence of a new global economy that is fairer, more inclusive, and compliant, thus serving people’ needs better and driving growth, innovation, and prosperity around the world.”
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