Helping build a modern economy and delivering financial fairness.

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

Helping build a modern economy and delivering financial fairness.

11th February 2021

The world has changed radically over the past few years - most importantly we now live in a world wherein all developed countries populations have access to smartphones and a good internet connection. Because of this, we continue to see dramatic changes to western societies and historical institutions are finding it difficult to keep up - especially within financial services. 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 moment labelled ‘Rage against the financial machine.’ A crowd of investors, organised on the internet, purchased shares in the company GameStop whilst 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 trend of decentralisation in the financial service sector by 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 to allow them to make their own decision whilst understanding the level of risk involved.


The coronavirus pandemic will accelerate the decentralisation of financial services, not only because platforms like Crowd2Fund provide access to previously inaccessible markets, but also because more people are working from home, they have more time and higher levels of financial literacy. Because people have been stuck at home not spending money, many also have access to higher than normal amounts of household savings. Google has seen a 46% increase in searches for financial services and wealth management apps over the last few months alone.


Decentralisation of financial services is good because it means that more people have access to these services and markets. It is positive for the financial service sector who by adopting decentralised models can operate much more efficiently, in a more compliant way, and fairer. We believe that 90% 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.


The power to the people movement in financial services is not just good for investors. The idea of community is critical for entrepreneurs and small businesses. For example, the Crowd2Fund platform facilitates this for businesses by inspiring other fellow entrepreneurs. The platform users also offer support and direction through our messaging capability. Most importantly, the platform is designed to support the next generation of entrepreneurs and act as a guide for others up a proven path to prosperity and success – whilst offering decent returns at the same time for investors.


Technology does not just provide operational efficiency, but also new experiences and products never imagined in a centralised financial service firm such as a bank. For example, the idea that a platform can automatically source and establish a relationship between an entrepreneur and hundreds of sophisticated investors is a new and highly valued tool for many businesses delivered with the Crowd2Fund platform. There is much more to do to innovate and develop FinTech platforms to fully embrace the true potential of decentralised online banking and financial innovation.


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 offered to many who do not have access and have only recently got access to a smartphone or internet connection. India has the fastest-growing 5G network in the world, which will significantly change the lives of 1.2bn people and stimulate significant economic growth.


Compliance and good regulation are critical to the successful rollout of new financial technology around the world and this is where traditional institutions can bring wisdom and experience. New technology must be embraced and put at the core of these larger institutions if they are to survive. The ultimate goal is to drive wealth creation, trade, innovation in addition to financial inclusion. New credit policies can also ensure capital is channeled to solve global challenges we now face such as the environment and the need to invest in green energy, to name just one critical sector where innovation and investment is needed to accelerate the healing of the planet's ecosystem over the next 100 years.


As we emerge from this dystopian and tragic pandemic world, we’re optimistic about the new opportunities that will open up. We remain positive about the emergence of a new global economy that is 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.

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