There are several early phase companies in the finance sector that develop the new web 2.0 era or whatever the right name is. Why can’t it be as easy as with PayPal to open a bank account and transfer money? Why don’t we have a lot of direct investment markets on the Internet without high management fees? Why couldn’t we build an investment group online with our friends and work like an e-fund and diversify our investments?
Often the answer is, because the regulators and incumbent finance companies want to keep the old models and protect them. They say it is better and safer for ordinary people; they don’t trust that ordinary people actually can be responsible or smart. It was the same before the French revolution, the establishment saw democracy as dangerous when ordinary people could not be trusted to make the right decisions. IBM didn’t believe ordinary people would ever need a computer, they thought a few computers for professionals is enough. And aviation authorities supported local monopolies and stated that state-owned-airlines offer enough options and are safer.We are now starting to see this change coming to the finance sector. The traditional finance sector is really struggling. Yet it is not only about money, it is also about how people perceive banks, funds and finance consultants. People are losing their trust. Crowd funding plays a part in this development. The foundation is constantly being built, but the revolution doesn’t happen over night. We as a community, have got a good start and step by step also regulators and traditional finance companies start to understand our journey. It is important to develop the startup funding market to work well. But at the same time, it is as important that the investment market works well.