Peer to Peer Power

Financial technology is all the rage lately. Any major technology player out there is investing in this technology and making it a stable part of their company. For example look at Apple, which has begun to Apple something that is everywhere in their business. It was a novel concept at the time, but is something that they pushed forward and other companies are beginning to take notice of it as well.

The power to the people is becoming real and the tools are at people’s disposal. It all started with Paypal and has moved onto the mobile way of paying now. The payment system has always been something that either took power away from the people or gave it to them.

During the transition of the bartering system to the role of currency was when there was a lot of power that was shifted to the people. Eventually that role got taken over by government regulation and big powerful banks. What is being seen now is a shift in the other direction and the power is in the hands of the consumer in terms of currency.

Decentralized Becoming the Norm

For the longest times banks were the only bastion of storing money and operating the monetary system. If you were to pay someone you’d store most of your money at one of these banks and transfer it through their systems.  The same can be said for loans and other monetary needs. Now there is a rise of things like Apple Pay and applications like Square Cash that allow you to send or receive money to friends, family or clients.

A Catalyst for Change

These types of apps aren’t only disrupting regular old traditional retailer, but other areas as well. One of the biggest areas of concern for the banks is something called Peer to Peer lending or (P2P), something that is paving the way for the future in terms of loans and lending.

It has been predicted that the industry is going to reach over $1 trillion by 2025, an impressive number indeed. What all of this really comes down to is avoiding high fees for transactions which is in the end where traditional banking services receive and make most of their money.

Take for example Bitcoin, which allows for somewhat anonymous transactions and also the proliferation of what some call a more stable decentralized network for many to use as a currency across the world.

Many companies that are also part of this new wave of the future taking advantage of this new way of lending are solar companies. The solar energy projects are being funded through these new lending processes and in the meantime being able to afford their projects without the hassle of going through traditional lenders.

The possibilities are limitless for this new type of lending and as stated earlier is a paradigm shift in the idea of giving more power back to the consumer and person who is being lent the money by bypassing the banking institutions