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Helping build a modern economy and delivering financial fairness.

Decentralisation of financial services now recognised as an inevitable evolution of capitalism.

10th March 2021

To say the world has changed radically over the past few years would be an understatement. Crucially, however, it’s not all doom and gloom. Out of the darkness of the Covid-19 pandemic we’ve witnessed a new and increased hunger for change and a harder, faster drive for financial inclusivity - with the decentralisation of financial services now recognised as an inevitable evolution of capitalism.

In 2021, we live in a world in which all developed countries have access to smartphones and the internet. This shift in technological access has, in-turn, required dramatic change in western societies and institutions to accommodate and capitalise on this positive change. And though many established banks and institutions are finding it difficult to keep up (particularly within financial services) a newer, stronger wave of technological disruption and ease of service is quickly rolling in.

Tech + community + heightened ethics
This month, for the first time, we saw the power of technology and community overthrow what some people saw as unethical trading by once-powerful hedge funds in a movement labelled ‘Rage against the financial machine.’ A crowd of investors, organised on the internet, purchased shares in the company GameStop as it was being shorted by a group of hedge funds. Shorting is where investors make money on a company where the share price decreases. This means that it will be more difficult for mainstream markets to predict and forecast a share price or drive down a share price unfairly by taking short positions on the stock. It also introduces a number of regulatory complexities which will need to be addressed.

‘In the last few months alone, Google has reported a 46% increase in searches for financial & wealth management apps.’
We’re already witnessing how the coronavirus pandemic is accelerating the decentralisation of financial services. Not only because platforms like Crowd2Fund provide access to many who were previously unable to access these markets, but also, as more people find themselves with extra time on their hands, they have more time for learning and research and thus have higher levels of financial literacy. Add to this the rise in disposable income for the more fortunate among us - with swathes of the population still earning during lockdown but spending significantly less. But what does the data say? In the last few months alone, Google has reported a 46% increase in searches for financial services and wealth management apps.

So. Why is decentralisation good news?

Decentralisation of financial services means more people have the ability to access these financial services and markets as opposed to the (generally wealthier) few. It’s good news for the financial service sector too. By adopting decentralised models, they are able to operate much more efficiently, in a more compliant and much fairer way.
At Crowd2Fund we believe that 90% of a traditional bank’s operation can ultimately be automated through technology, machine learning and Artificial Intelligence. Human judgement in financial services still remains critical and this is where decentralisation shifting to the hands and minds of a crowd or group of individuals is key. Crucially, if presented with the correct information, decisions can be better and more fairly judged by a larger crowd of diverse and informed people than by a few individuals (quite often in non-diverse settings such as boards or investment committees).

The wisdom of the crowd.

This trend of decentralisation in the financial service sector - giving control and access to private individuals - has been a core principle of Crowd2Fund since its inception in 2012. We believe in the wisdom of the crowd, as long as, crucially, the crowd has access to accurate and clear information, allowing them to make educated decisions while understanding the level of risk involved.

Compliance and regulation are key in building a better future.

Compliance and good regulation are essential in the successful rollout of new financial technologies around the world. And this is where traditional institutions can help in imparting their wisdom and experience. New technology still remains critical however, and must be embraced and put at the core of these larger institutions if they are to survive.
The ultimate goal of financial inclusion is to drive wealth creation, trade, better health, stronger economies and innovation. New credit policies can ensure capital is channeled to help solve the extreme global challenges we face such as the environmental and economic crises. For example, the pressing need for investment in green energy is just one very important area where funds are needed to support innovators in order to accelerate the healing of the planet’s ecosystem over the next 100 years.

Power to the people, & businesses, & investors, & the economy...

Technology doesn’t just provide operational efficiency, but also new experiences and products that have never before been provided by centralised financial service firms such as banks. The reality that a platform can now automatically source and establish a relationship between an entrepreneur and hundreds of sophisticated investors, is a new and highly valued tool for many, and one we’re proud to deliver. The Crowd2Fund platform has been built with our user’s best interests at heart, which essentially, is why it works so well. We exist to connect smart investors with switched-on entrepreneurs and burgeoning businesses. Our messaging tool enables entrepreneurs and investors to cut out the middleman and communicate directly - whether that’s to offer or receive support, expertise and direction or simply to give encouragement. We’ve also ensured our platform works to support the next generation of entrepreneurs - acting as a guide for prosperity and success, all while offering decent returns for investors.
Excitingly, there’s much more still to be done to innovate and develop fintech platforms across the board to truly and fully embrace the incredible potential of decentralised online banking and finance.

Our ‘Reboot Britain’ plan.
The Crowd2Fund ‘Reboot Britain’ plan outlines a roadmap for the deployment of Crowd2Fund across the 54 Commonwealth markets where access to financial services both on the investor side and the business side can be delivered to many individuals who previously did not have access to these markets. India, for example, now has the fastest-growing 5G network in the world - something that will significantly change the lives of its 1.2bn residents and help to stimulate significant economic growth across the world.

& that’s how we roll.

As we emerge from this dystopian pandemic world, we’re optimistic about the new opportunities that will and must open up. We remain positive about the emergence of a new global economy that’s fairer, more inclusive, and compliant, thus serving people’s needs better and driving growth, innovation, and prosperity around the world.

You can join our movement by investing in our Reboot Britain campaign, where you can potentially earn 4.00% annual interest tax-free via our convertible note, and be part of the scale-up story of Crowd2Fund.

Learn more about Reboot Britain


Risk warning

Past performance and forecasts are not reliable indicators of future results. Tax treatment of any of the investment offers will depend on the individual circumstances of each investor and may be subject to change in the future. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser. Do not invest more than you can afford to lose. Investing in start-ups and early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Investing in start-ups may expose the individual concerned to a significant risk of losing all of the money or other assets invested. Peer-to-business lending through Crowd2Fund is not the same as holding a bank or building society savings account. When making a peer-to-business loan, your capital lent to a borrower is not covered for compensation in the event of a loss by the Financial Services Compensation Scheme. It may prove impossible to recover all or part of the loan by calling in the business assets held as security on that loan. Reward and Donation funding types are not regulated by the Financial Conduct Authority Crowd2Fund Limited is authorised and regulated by the Financial Conduct Authority (FRN 623683). Crowd2Fund Limited is registered in England and Wales. Registered No. 08472687 Registered Address: 242 Acklam Road, London, W10 5JJ.

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Risk warning

Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.