The Uberization of Money
The familiar middlemen of 20th-century banking and investing are giving way to something very different. Are we ready for the opportunities—and the risks?
Imagine that you want to buy a home. You might find a real-estate agent to show you around, which is a very 20th-century way of doing things. Or you might go 21st century and use the Web to research prices and available properties and to take a few virtual tours.
When it comes time to buy, however, you will probably revert to procedures that were created in your grandparents’ era. You will assemble financial documents and present them to a loan officer at a bank, who will take weeks to determine what you can borrow and at what rate and then present you with a narrow menu of costly options.
Imagine instead a simple online interface that could generate a tailored credit score for you, taking into account your future earning potential based on your education and location. It would connect you to lenders ranging from banks and credit unions to pools of individuals who want to lend privately at a negotiated rate for whatever duration you agree on. You could shop around, combine different types of financing and arrange a mortgage package that best suits you, all within a few hours…..
This is yet another perfect description and example of how things are changing across the board. In Payments the Uberization is of the Customer Interaction to instruct the payment. In Uber the “Payment is assumed” as the ‘Commerce Transaction’ was completed. We will see a wave of this in the future when the Payment will be Absorbed into Commerce. Therefore all in the Payments Industry had better be ready to expand the operating domain to engage fully with Commerce. The big plus then is that true new value (revenue streams) can be created! Happy times.