Marius Royal

Market Analyst

November 2 2018

Utilizing Resources and the Sharing Economy

If you have read my previous blogs, you’ll notice a trend that I constantly talk about the phone and innovation in the mobile domain. It’s been a constant trend, you could even say repetitive, but there is a reason I keep bringing it up; it’s exciting. Exciting insofar that what it provides are countless forms of innovation that improve our day-to-day life. The really game changing factor with mobile phones is how mobile phones have developed a whole new sector of the economy, the sharing economy.
The big-name companies in this field are creating large-scale economic value by creating services that allow us to better utilize our resources. To give an example, Uber has created immense value by offering a ridesharing service between drivers and clients. It has created a credible payment system, that establishes a cost prior to the trip (unlike a taxi) and allows you to exercise discretion when choosing a driver, based on a rating system.
This service has created an improvement on utilizing a car for its full economic potential. Before Uber, the only way to rent out your car as a taxi service would have been extremely limiting, if not impossible. If anything, you would have had to gone through the process to setup as a taxi. But what the mobile world has done with the sharing economy, is improve your own resources, by allowing you to sell your car as a service.
The same can be said with UberEATS, a service allowing food delivery from restaurants in the surrounding area. Allowing more individuals, the economic opportunity to deliver food as a business. And finally, Airbnb has done the same thing with renting out property online. Allowing people to fully utilize their property as leasable for a couple days to a couple weeks.
Amazingly, what the sharing economy has done is utilize existing resources to generate new avenues of value. Before these apps hit the market, it would have technically been possible to do this, just not nearly to the same degree. You could have built a network of customers, say a dozen, and deliver food for them with an added cost. You would have had to build this network yourself, and most of the management would have to be on your end. Now, all these apps that deliver these services (Uber, Lyft, Airbnb, etc.) do that management for you, and find you clients with little to no work on your end.
This model of the sharing economy, highlighted with Uber and Lyft, is what also excites me for the potential with Finpass. While Finpass isn’t built on a model of the sharing economy, what it does do similarly is allow a maximization of one’s own resources. establishing a financial passport that securely holds your data, drastically changes many things that would have been cumbersome before.
To illustrate, a major issue prior to Finpass would have been compliance. That is to say, instead of having your financial data readily available on your phone, you would have had to apply at a financial institution to validate your financial records and see if you meet the requirements for applying for a loan. While this is certainly a slow way to deal with establishing credibility, it was the most efficient way to process loan applications until now. Now, we have reached a point that a compliance period, waiting to be approved, is a thing of the past – allowing you to utilize your financial resources efficiently and immediately.
While the focus of this has been towards loan approval, there is a larger question as to what this level of instant financial accreditation means for other factors in your life? This gives unprecedented power to anyone who owns a business, or any customer that requires financial accreditation. Consumers can gain access to purchases of a larger scale, given they can prove their financial status instantaneously. This could be anything from purchasing a car, renting an apartment, to proving you are capable of a large purchase, with all the relevant data sitting in your pocket.
Finpass gives unprecedented power for us to use our financial resources as we please, and it goes hand-in-hand with the new economic power of the sharing economy.
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