Software Defined Finance – Internal Administration

Less cash
Uber and airbnb change the world of transport and accommodation by offering taxis and hotel rooms without having them in possession. In the same way there are innovations going to offer insurance money and without having to be able to provide itself physically. The bitcoin this is a common example. This is an organization that facilitates payments without owning money. But crowdfunding and peer-to-peer insurance similar to these and several years as possible.

So we are many years on the way to a world with less and less cash. Netherlands leads the way as a country where cash is becoming less necessary. The old postal transfer was the basis for bank transfer and now there will be a period in which we are going to pay even with the smartphone. That the big players like Apple and Google an important role to play, is evident.

But that also means that financial institutions have less grip on the payment behavior of their customers. The parties that the payment of services and products best support, usually know the market best. There, they can become a (new) dominant position in building. So that really do not (any more) to existing banks and credit card companies.

Software Defined Finance
Whoever the best and safest crypto currency able to develop, it will naturally gain a dominant position with regard to the execution of cash transactions. But value transfer may be wider than just a cash transaction, such as the closure of records or contracts. For this, one uses so-called block chain type systems, such as Etherium , to safely create digital contracts that support peer-to-peer events.

Bitcoin transactions include not transactional but Eventually – eventually – consistent. That is, software that ultimately results that the transaction is effected. A good example is when two people without Internet do a bitcoin transaction: both smartphones transaction is recorded and software will make the transaction globally consistent through the first smartphone to get an Internet connection again

. Software Defined Insurance
Even more than the financial world, the insurance industry will change. In the world of insurance is the one who can achieve the best risk the bacon buyer. In this globalized world, this means that global players, local players will always road games. Just as there is a huge consolidation of global social media parties occurred after the Internet bubble in 2001, some global players like Apple, Google and Facebook have become the winners. This will also happen in the insurance world, because the risks all want to ensure do not differ by region.

As personalized services increasingly are offered insurance will also be more personal and more are set up on a person’s individual needs. On the other hand find new insurers also to estimate better the individual customer risk. As traveler and appreciate each landlord or manager at Uber and Airbnb, with assurances that will happen: look for honest customers honest companies and vice versa. A very new development when you think more about it.

Kaf of the corn
There thus arises a new way of banking and insurance. Of course there will always be a need for knowledge and skills to give advice on how one can best manage assets, his administration can arrange or secure his possession. But that knowledge does not necessarily only in the institutional holdings sit with truck system. Advice, support and implementation can be easily separated worlds, digital open, traceable and last but not least very similar. Here too big data quickly separate the wheat from the chaff.

The Netherlands has long been the insurer verzekeruzelf.nl active wherever I’ve had good experiences. A breath of fresh air compared to the administrative hassle of old-insurers. An online insurance where you can arrange everything digitally and you can assure yourself without notice per day. With its own digital file with personal data by you and always accessible via a secure authenticated login system. An insurer without phone number, mailing and advertising and without policy costs just transaction. Affiliated to the privacy safe QIY Foundation that can manage your log information with personal data. And finally also the Fastest indemnity. This is a good example of the new way of insurance.

The customer is king
The core brands of all these developments, the strategic role of data and a streamlined information infrastructure. In addition, a high form of automation, making it a self that is no intermediary is needed. The customer has become truly king and offered his services to user specific. The service is obviously mobile and supported on a cloud platform.

The developments of mobile payment, integrated payments, location-based and / or machine-to-machine payments (my car pays his toll) to high secure payments based on biometrics and location-based identification. Oddly mobile transactions less attractive to hackers, because each user hardly a revenue model exists. Especially when the payment app quickly and can be updated broad enough, once an individual hacker activity is detected.

Like Uber and Airbnb you do as mediator itself to have no money or insurance to mediate insurance or loans. Brokers can offer the cheapest and most reliable service in the market and search through their apps. Often, the fully digitized mediators can this so exceedingly well that existing companies quickly have it serviced. Or pick up the digital challenge and build yourself some personal efficient service

I know some local taxi companies which apps à la Uber have developed their own local area and almost the same service can provide:. Digital, fast, mobile, with ratings and automatic checkout for their own customers. In short, what new digital companies do, others can too. Technically, anything is possible. But you have to have guts and not backward, but forward to run in the future. And accept that more than ever the customer became king.