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Envisioning the future of money

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Envisioning the future of money

  1. 1. the technological future of Money a study on the technological exponents of change shaping the future of money
  2. 2. Envisioning is an independent research foundation based in Brasil. Our global team of academics, hackers and designers study technology to understand accelerating change. We share our work with our own tools, methodology and design.
  3. 3. This briefing on the future of money is the first in a series of explorations on the future of global systems; including industries, sectors and economies. Starting our research on the technology of money is a matter of timing: we believe an industry-toppling, government -shifting, sector-disrupting revolution is underway. Think Napster, but bigger. Much bigger. http://www.flickr.com/photos/peasap/935756569/
  4. 4. Indeed, hiding in plain sight, money is a technology. As a human invention, it is no different than passports, agriculture or space flight, and like networks and computers, it obeys the same accelerating laws ( ). From beads to gold, it has changed shape, and from changing hands to routing data, the transfer of money has accelerated, expanded & multiplied. Today, this ancient technology is transforming society’s concept of power and how it is held. http://www.flickr.com/photos/stuckincustoms/5896504098/
  5. 5. While governments are facing coalescing citizens and the financial industry is perpetually covering its ass. Yet, technologies and their communities have flourished as digitized money flows freely through their networks. Internet-born currencies, network-only banks and HFT algorithms have become free agents operating at breakneck speeds with no regard to existing laws or powers. The playing field is not just leveling, it is changing. http://www.flickr.com/photos/zigazou76/6970321441/
  6. 6. Our fractured financial landscape shows no sign of moving toward more order. In the following pages, we identify individual technologies that are shifting power between long-siloed entities of institutions, networks and individuals. http://www.flickr.com/photos/spyker3292/5555247954/
  7. 7. These power shifts are well underway. Banks and governments know they are losing their grip on customers and citizens. Technology shows no sign of slowing down. This leaves us perpetually future-shocked, trying to grapple with narrower slices of understanding. This is our attempt to explain what is happening. http://www.flickr.com/photos/polubeda/4271425107/
  8. 8. fall of fiat The future of money looks nothing like its past. Handling money today feels like faxing when you could be texting: it works, but is a mind-boggling, convoluted and antiquated process. Banks create scarcity by centralizing money. This scarcity is artificial. A wealth of startups and communities are working around the limitations of money-as-a-system by developing technology-backed alternative currencies. Reputation systems, attention economies, digital currencies are all inventive solutions to measure value in decentralized economies. With the notable exception of cryptocurrencies, virtually all existing currency systems are the result of a shared belief in the currency system itself. Some systems claim their value through fiat (Euro), others through commodity (silver), but they all share a single, centralized belief, be it in the future prosperity of the EU, or the utility of silver. Decentralized currency systems have the freedom of being entirely unpredictable and detached from convention. Bitcoins and their value are derived over time from a computational mathematical function. Ripple creates financial capital from a monetary honor system. The future of decentralized currency is fast, unpredictable and ruthless. 8
  9. 9. 5 ATTENTION ECONOMIES With the internet’s persistence, the attention of an individual is becoming a scarce and increasingly valuable commodity. When attention is paid, spent, given, taken – or transacted – it becomes influence, which then develops as capital. Social media has developed the first mechanisms for quantifying it – tweets, likes, comments, reblogs, etc. 1 Reputation Economies The reputation of an individual or an institution can be easily measured and assessed online. As the network, in the form of social media, provides more opportunities for individual influence through comments, reviews and likes, it provides more context, cause and character for decision-making. This creates accountability and transparency and ultimately drives individuals and institutions to be good. Timebanking Timebanking is a means of exchange used to organise people and organisations around a purpose, where time is the principal currency. For every hour participants ‘deposit’ in a timebank, perhaps by giving practical help and support to others, they are able to ‘withdraw’ equivalent support in time when they themselves are in need. In each case the participant decides what they can offer. Everyone’s time is equal, so one hour of my time is equal to one hour of your time, irrespective of whatever we choose to exchange. Because timebanks are just systems of exchange, they can be used in an almost endless variety of settings. Klout Klout measures individual influence based on the ability to drive action across the social web. Any person can connect their social network accounts and Klout will generate a score out of 100. Klout also provides people with opportunities to shape and be recognized for their influence. envi.si/14pPz7D envi.si/17LJzrH More than 25% of Generation Y reported high interest in a hypothetical infomediary who would manage consumers digital identity and footprints envi.si/1a2s9xk 9
  10. 10. Bondsy Bondsy is a smartphone application for friends to trade things you can’t put a price on. When you aren’t forced to pay with money, things get a lot more interesting. You are more comfortable transacting with friends. It’s important to highlight: everything is private on Bondsy. Pricetags are freeform, so you can ask for anything in return. When you want something, tap ‘Grab’ and make an offer. 2 Peer-to-Peer Economies Peer-to-peer economies occur when the production, transaction and consumption of goods happen between individuals, not companies. Peer-to-peer economies are not new, but the internet has allowed more people to connect and trade, leading to an expansion of currencies (time, attention, resources, influence) and the platforms through which they are traded. envi.si/168wPgN New Rules for the New Economy (1998) Wired founder Kevin Kelly spoke about the future value of connectivity at a time most pundits still debated whether the internet would ever take off. envi.si/17QLZsH 10
  11. 11. 3 Digital Currencies In a normal banking system, the value of money is chipped away by several middlemen before it gets to the end user. Digital currencies are powered by the network – they are decentralised and peer-to-peer, making them powerfully frictionless. Cryptocurrencies rely on cryptography and a proof-of-work scheme (‘mining’ by using supercomputers to decipher hashed algorithms). They are generally capped and have no inflation to maintain scarcity and value. Identified by cryptographic keys, with an open-source client where transactions must be verified by the whole, the movement and growth of cryptocurrencies are fully transparent, traceable and anonymous. Butterfly Labs received over 20.000 pre-orders for their dedicated Bitcoin miner envi.si/1bsD4OP Namecoin Ven Currency Ven is a digital social currency used to share, buy, sell and trade in the world of Hub Culture and beyond. The value of Ven floats against other currencies and the price is based on a basket of currencies, commodities and carbon futures. Namecoin is a peer-topeer generic name/value datastore system based on Bitcoin technology. It allows you to securely register and transfer arbitrary names, no possible censorship, attach values to the names (up to 1023 bytes) and trade and transact namecoins, the digital currency NMC. envi.si/1bsCOiw envi.si/16NTiAO 11
  12. 12. Bitcoin Rethinking Money (2013) Bernard Lietaer and Jacqui Dunne explore the origins of our current monetary system, built on bank debt and scarcity to paint an alternative picture of how we could improve our existing implementations. Bitcoin is the first practical implementation of a cryptocurrency. Though more than half of all Bitcoins have already been mined since its creation in 2009, it will take until 2140 for the last one to be found. envi.si/19qTutM envi.si/16oflOx Mt.Gox Mt.Gox is the world’s largest Bitcoin exchange, handling a majority by volume of currency exchanges involving the cryptocurrency Bitcoin. Mt.Gox was established in 2009 as a trading card exchange, but rebranded itself in 2010 as a Bitcoin business and quickly became a dominant player in the field of Bitcoin exchanges. envi.si/1dndAUM 13
  13. 13. 4 Decentralized currencies With the notable exception of cryptocurrencies, virtually all existing currency systems are the result of a shared belief in the currency system itself. Some systems claim their value through fiat (Euro), others through commodity (silver), but they all share a single, centralized belief, be it in the future prosperity of the EU, or the utility of silver. Decentralized currency systems have the freedom of being entirely unpredictable and detached from convention. Bitcoin value is derived from a computational mathematical function over time. Ripple creates financial capital from a monetary honor system based on existing trust between social network users. The future of decentralized currency is fast, unpredictable and ruthless. The End Of Money (2012) David Wolman cleverly describes a future where cash is rapidly disappearing as well as the technologies that are prone to take its place. envi.si/1eotUYl Lamassu LiteCoin Bitcoin ATM. Insert cash, get Bitcoins. Accepts notes from over 200 countries. Bitcoins are so often viewed as an electronic gold with Litecoins be seen as silver. It was now time to be seen. Fact is, the electronic currencies in recent years are coming in strong. The total value of the crypto-currency is currently at 38 million U.S. dollars. Litecoins eliminate several shortcomings of Bitcoins: The authentication time a payment is only two and a half minutes – about a quarter of the average response time of the Bitcoin network. The mining algorithm is Scrypt, so users can use standard PC hardware to mining. And the total volume of all Litecoin ever available is 84 million, which represents a four-fold the maximum volume of Bitcoin. envi.si/16qp0Dm envi.si/1cYkke7 14
  14. 14. Share these findings with esteemed colleagues & sworn enemies We see a rapidly accelerating world and want to empower influencers from all sides to join the conversation. envi.si/fom-tweet envi.si/fom-fb envi.si/fom-linked envi.si/fom-email
  15. 15. banking as a layer Computers were conceived as mainframes but morphed into laptops, desktops, smartphones and tablets within a generation. Financial technology is still tethered to its past. Fintech needs to let go if they want to compete with the network. Emerging technologies are handing banking powers to networked individuals – they can leverage funds collectively and manage their finances intelligently. Sharing personal financial information with third-party services in a secure, selective and predictable manner will enable customers to play a more active role in their managing of money. Digital money will be conceived as a system of deeply interconnected and interdependent agents, open to anyone or anything. The future of fintech is horizontal, not vertical. Platforms, not mainframes. Porous interfaces, not monolithic surfaces. Empowering, not controlling. Small (personal) data, not only big (collective) data. 16
  16. 16. 22 Banking APIs Application Programming Interfaces specify how software components interact with each other, and in banking, it allows third-party applications to connect to the consumer’s account. Combining technology, design and user-experience principles, new banking applications can remove complexity and offer simple – yet powerful and intuitive – products and services. These can range from support for the visually impaired, to creating dialogue around transactions, to personal financial management packages. Ultimately, this gives consumers greater engagement and command of their financial life. The Open Bank Project GoCardless GoCardless is a UK-based service that allows smaller merchants to easily set up interbank transfers for customers. envi.si/162Dh5A 62% of surveyed bank customers say they prefer online banking envi.si/16J7Mjz The Open Bank Project is an open source API and App store for banks that empowers financial institutions to securely and rapidly enhance their digital offerings using an ecosystem of 3rd party applications and services. envi.si/1d4c9dD 17
  17. 17. 21 Online-Only Banks A model conceived in the mid90s for lower operational costs. This enables higher interest rates, lower fees and minimum requirements. Based online, they can problem-solve and innovate easily with technology – deposits are done via smartphone photos and customer service is available immediately through online chatting. This model will prevail over traditional banking. 40% of surveyed customers claim they would eventually outsource personal finances to a digital assistant envi.si/18sJhIH Holvi Holvi replaces your bank account with a service that offers a smart checking account for group activities. The account and budget is shared by your whole team, offering full transparency. Full bank payments can be made, both in and out. Uniquely a very wide range of information can be attached to all payments. This means accounting and money management happens completely automatically. Finally, you can easily collect money to support your activity. Simple (formerly Bank Simple) is creating a better interface for banking through the web and mobile apps. In partnership with financial institutions which will hold the actual deposits, Simple is focusing on improving customer experience and simplifying the banking process by unifying all accounts into one, accessible through a bank card. envi.si/19glsEW envi.si/14uQzaH Simple 18
  18. 18. Mint Mint.com is a free online personal finance service. It automatically pulls bank, credit card, mortgage, loan and investment transactions from over 7,500 US financial institutions daily — giving users an up-to-date view of their money with no data entry, import or synching required. It categorizes all transactions, showing users how much they spend on gas, groceries, restaurants, and more; their bank, credit card and investment account balances; the amount of interest they’re earning/paying, etc. Moven envi.si/19gl7lB Moven is a mobile money service that helps you spend, save, and live smarter. You can load, transfer, spend, and track your money using your mobile device. Its tools provide you with instant feedback on your transactions and spending patterns. Check (formerly Pageonce) is an award-winning app that stays on top of your bills & money for you, so you never miss a bill or get hit with overdraft & late fees again. Just set it up once and the app goes work – proactively staying on top of your bills and monitoring your bank accounts and credit cards, all in one place. When bills are due or funds are low, the app will let you know so you’re never caught off guard. envi.si/1d4kD4x envi.si/18sAbvq Check 20 Open Data Analytics As technology enables more real-time access to more data, there is more opportunity for analysis and improved decision-making. A raft of applications have emerged to evaluate transaction patterns, anticipate outcomes, refine goals and monitor progress. Individuals will be able to measure themselves against large swaths of the population and have a clearer understanding of their position. Soon, personal finance decisions, especially those relating to income, spending and debt, will only be made by first consulting applications. 19
  19. 19. 18 Service-Driven Automation The rise of online banking platforms has opened up a new world of financial management services. Technology has put automation and control into the consumers’ hands, enabling them to program, monitor, verify and manage their financial profile to a precise degree. One example: if my income is above X this month, transfer Y% of X to my savings account. It can also include credit monitoring, fraud detection, synchronized billing and invoicing, push notifications. Bank 3.0 (2013) Brett King looks at the trends redefining financial services and payments, from mobile-only banks to post-scarcity economies. envi.si/1eotYY4 Stride Stripe is the easiest way to accept credit and debit card payments online. With Stripe, you can create exactly the payment experience you want in your website or mobile app, and we handle everything from security to daily transfers to your bank account. Stripe is a simple, developer-friendly way to accept payments online. They believe that enabling transactions on the web is a problem rooted in code, not finance, and they want to help put more websites in business. Stride is a fresh take on sales tracking. Traditional Customer Relationship Management (CRM) systems are complex, clunky and built for full-time salespeople. Stride strips the sales process down to its essence, making it accessible to the everyday user. With clean deal tracking and high-level metrics, Stride shifts the focus to simplicity. envi.si/16E47aB envi.si/13WHPhU Stripe 20
  20. 20. 19 Open-source investment Algorithms Most investment algorithms are proprietary and managed by large investment firms. Following the volatility of the financial markets and loss of confidence in its institutions, there has been a rise in platforms to drive open-source algorithms. Built by a community, are constantly adapting and evolving. They provide opportunities for traders to develop algorithms for their own needs, and quickly test new ideas in investments. Quantopian Quantopian is building the world’s first algorithmic trading platform in your browser. It’s a tools and support give quants what they need to learn, create, test, trade – and reap the benefits of quantitative finance for themselves. envi.si/13WQl0j Abundance (2012) Futurist Peter Diamandis and science writer Steven Kotler present an appealing future where exponentially growing technologies conspire to better the lives of billions and redefine the nature of money. envi.si/15o4Mvh 21
  21. 21. Fund us with dollars or likes We’re a quickly growing foundation with big plans. With your support, we can focus on envisioning the future of technology. envisioning.io/donate/ facebook.com/envisioningtech/
  22. 22. accelerating transactions Who are you? In order to make a transaction from an account, your identity must be verified. This technology is accelerating and becoming objective. Vendors and bank tellers once asked personal questions and eyeballed handwritten signatures or 2x4 photos before moving money. Now, with single sign-ons, biometrics and intelligent hardware, you can be verified with a few keystrokes, the tap of a smartphone or a scan of your fingerprint. By accessing data at the speed of light, identification and transactions are nearly frictionless. As networks take on the job of identification, their increasingly sophisticated algorithms will offer unprecedented accuracy and objectivity. This means more security and less fraud. 26
  23. 23. Biometric Identification 11 Developments like Square and PayPal readers have added 1.2 million new businesses over the past year to the card firms’ list of merchants Economist envi.si/1d4vqfe Biometrics, such as fingerprints, can be used to identify the user and authorize the transfer of funds. Often, the system uses two-factor authentication, in which the finger scan is followed by typing in a PIN (personal ID number) as usual. This provides unprecedented security and frees users from carrying identification. Paytango Offers a point-of-sale fingerprint reader for customers. They create an account linking their fingerprint with their cards and PIN. At the POS, they just press their fingers on the reader to authenticate. This takes less than 6 seconds. Nymi Nymi is a bracelet that uses your unique cardiac rhythm to authenticate your identity. It will provide interaction with other devices as a token of authenticity. Opening doors, unlocking phones, inputting passwords, etc… envi.si/19fmBMv envi.si/14IB1Ec 27
  24. 24. 10 Contactless Payments Near field communication (NFC), location and scanning technologies on smartphones are powering contactless in-store transactions. A customer can scan a 2D barcode, tap their phone on a NFC machine, or check in with a nearby merchant to authorize transactions from linked accounts. This streamlines payment systems, reduces infrastructure and lowers costs. 6 Single Sign-On Single sign-on allows a user to log in once and gain access to multiple software systems at once. This reduces the fatigue, time spent and support needed from managing different username and password combinations, and could turn into an universal protocol that relinquishes passwords or pins. The Ghost of Bitcoin Polygon’s Charlie Hall sets out on a journey to uncover the elusive (or pseudonymous) Satoshi Nakamoto in an attempt to explain the past, present and future of Bitcoin. envi.si/18gsSKC Google Wallet Google Wallet is a virtual wallet that stores payment information securely and makes paying fast both in-store and online. With Google Wallet, users can store credit, loyalty, and gift cards and make payments through MasterCard PayPass. envi.si/13i7zqD 28
  25. 25. 8 Location as a Layer A smartphone’s location capabilities can power verification and transactions. For example, a smartphone can be used to verify the location of a user making a transaction. This can provide context and increased security for customers – action can be taken immediately if a purchase occurs in England, but your smartphone puts you in Brazil. Further, a location services can check you into registered locations, and transactions can be made after you give the merchant your name. 7 Mobile Credit Card Readers A hardware add-on for smartphones that uses their internet connection to enable credit card processing. As an alternative to traditional credit card authorisation, this offers institutions, big or small, more independence and a smaller setup cost for payment systems. Square Square is a solution for both merchants and consumers to pay and charge for products and services using their mobile devices. It allows customers to set up a tab and pay for their order simply with their name using a stored credit, debit, or gift card. The app supports manually entering the card details or swiping the card through the Square Reader. It also serves as a full point-of-sale system for businesses to accept payments, manage items, and share menu and location information. envi.si/168R1PL 29
  26. 26. 9 Digital Wallets Software wallets today already do more than their leather counterparts; they are streamlining transactions, and moving a host of new currencies and economies. Smartphones can use scanning technology to scan 2D barcodes, NFC components to make payments, and location services to develop relationships with nearby merchants. Expect a crop of apps and services that let you store, synchronize, track and share the contents of your wallet across devices, and let you pay in a multitude of units from Google Credits, Canadian Cryptodollars to Facebook shares. Square’s annualized rate of processed transactions is now up to $5 billion , up from $4 billion a month ago Chirpify Uniqul Uniqul is a provider of world’s first face recognition payment system. Customers don’t need phone or wallet to pay in the store: just being there enough. Uniqul is world’s fastest payment system. They are effectively reducing time spent on retail payments from present day 30 seconds to nearly 0 seconds. Chirpify turns replies and comments into cash, enabling businesses and consumers to buy, sell, donate, fundraise and pay in-stream on social media. These are social, device agnostic, frictionless, in-stream, one step payments. By removing all frictions of a traditional payments or e-commerce system, Chirpify transforms social platforms from broadcast to transactional. envi.si/13i6OOl envi.si/168PRns Gigaom – News On Tech & Startups envi.si/15AWCL0 30
  27. 27. The Currency Cloud The Currency Cloud platform leverages the cloud to provide access to a multitude of payment networks, exchange rate providers, comprehensive administration, and automation for a payment’s lifecycle – from pricing and beneficiary management, through execution and receipt to settlement and reporting. envi.si/13WK0SG Two-thirds of the adult kenyan population Balanced Payments Balanced is the first payment system designed for marketplaces from the ground up. We provide a feature-rich, fully integrated API that allows marketplaces to charge cards, escrow funds, deposit next day via ACH direct, and collect their own marketplace fees. envi.si/16O3OIs is using mobilemoney services, mainly to transfer money to family members or business partners in distant locations, but increasingly for bill payments and small loans.” Globe and Mail envi.si/1cyNmRc 31
  28. 28. Dwolla is on track to process over $1 billion for 250,000 consumers and businesses in 2013 envi.si/178mMeO Lemon Lemon helps you spend smarter. It turns the smartphones into a digital wallet that organizes and stores IDs, credit cards, loyalty cards, receipts, coupons and more, so can access what you need more conveniently, and are always backed up in case your wallet is lost or stolen. Dwolla Google is rolling out a feature in Gmail that lets you attach money in emails or chats. Using Google Wallet, a new button ($) in the Gmail compose window will allow you to easily send money as a gift or repayment. Dwolla provides a free web-based software platform which allows users to send, receive, and request funds from any other user. Dwolla’s maximum transaction cost is 25 cents per transaction. envi.si/1cLrlxR envi.si/16LUxjm Emailing money envi.si/19gnvZD 32
  29. 29. Tap our network of experts, hackers & thinkers to work with you Envisioning concentrates researchers around several sectors and industries. Find domain experts, technology developers & design thinkers to assist in your projects. tapthenetwork@envisioning.zendesk.com
  30. 30. Actual Google search suggestions on 2013-11-01
  31. 31. Fund the research that will shape your industry Technology is relentless. Organizations, individuals, networks, – join with us to understand it. We welcome like-minded organizations to partner in understanding futures. futureresearch@envisioning.zendesk.com
  32. 32. leveraging crowds Standing on the shoulders of technology, networked individuals can organize themselves around possibilities invisible and unreachable to institutions. These networks can look like chaotic swarms, but are intrinsically interdependent and infinitely more sophisticated than any systems diagram would have you believe. Platforms provided by the internet have enabled the exchange of resources, from the digital to the physical, and allowed us to nurture new economies. With sustainability, utility and community in mind, there has been a decisive shift from consumption and the concept of wealth has expanded. It’s more about cause, than cash. 38
  33. 33. 17 Collaborative Consumption Powered by network technologies and peer communities, collaborative consumption is a new economic model geared toward developing access, not ownership. Through online platforms, consumers are able to lend, swap, barter, share and gift products on an unprecedented scale. Massive networks for social lending, car sharing and peer-to-peer travel have already established themselves as major economic forces for sustainability. WIRED on the future of money (2010) Daniel Roth’s seminal piece of the flexible, frictionless and (almost) free future of money. envi.si/16ofAt5 Zipcar An online platform for individuals, generally private parties, to rent unoccupied living space and other short-term lodging to guests. Listings include private rooms, entire apartments, castles, boats, private islands and other properties. A carsharing company providing automobile reservations to its members, billable by the hour or day. Members can reserve Zipcars online or by phone at anytime, immediately or up to a year in advance. Zipcar members have automated access to Zipcars using an access card which works with the car’s technology to unlock the door, where the keys are already located inside. envi.si/16gKOUx envi.si/13i8B5L AirBnB 39
  34. 34. 15 Crowdsourced Financial Decision Management A pool of individuals can be solicited for support on financial decisions regarding a project or company. These individuals are usually related in some way to the project or company, either as investors, consultants or founders. StockTwits Forbes estimates the revenue flowing through the share economy directly into people’s wallets will surpass $3.5 billion this year, with growth exceeding 25% envi.si/168XFWk StockTwits is a social, stock micro-blogging service. StockTwits is an open, community-powered idea and information service for investments. Users can eavesdrop on traders and investors, or contribute to the conversation and build their reputation as savvy market wizards. The service takes financial related data and structures it by stock, user, reputation, etc. Stockr is a social media platform for the financial world that connects investors directly to the people and companies they want to follow. envi.si/18sRZqe envi.si/168VnGu Stockr 40
  35. 35. 12 Upstart Mike Merril A 30-year-old part-time entrepreneur named Mike Merrill decided to sell himself on the open market. He divided himself into 100,000 shares and set an initial public offering price of $1 a share. Each share would earn a potential return on profits he made outside of his day job as a customer service rep at a small Portland, Oregon, software company. envi.si/18IbyLg Upstart lets a person monetize their future potential. They can raise money today in exchange for a small share of their income for either 5 or 10 years. Their backers are investing in them, not their idea or business. Backers can invest in increments of $100. They share some of your upside, but payments are capped regardless of your success. envi.si/14gQ74h People as Investments As accomplishments can be clearly measured, people, like companies, can position themselves as investments. By measuring their potential through data, statistics and algorithms, individuals can raise money in exchange for a small share of their future income. Instead of focusing on investments for a specific project, they can fund an array of ventures, which enables a more holistic approach to innovation. Lending Club, one of the leading P2P money lending platforms recently surpassed USD 1 billion in personal loans envi.si/1cLaHhY 41
  36. 36. 13 Microfinance Microfinance is a broad category of banking services made available to small businesses and entrepreneurs who otherwise have no real access to it due to high associated costs. It can include microcredit, savings and fund transfers and is seen to a powerful tool for economic development. With peer-to-peer platforms, the internet has expanded access to microcredit, linking wealthier investors to developing communities and making funds more readily available by bypassing usual banking intermediaries. Flattr Flattr is a microdonation system. Users are able to pay a small amount every month (minimum 2 euros) and then click Flattr buttons on sites to share the money they paid among those sites, comparable to an Like button with money on top. envi.si/1a2Hlua Adults under 35 are the most digitally savvy and therefore the most likely to have participated in sharing or renting online rather than owning Kiva M-Pesa A non-profit organization that allows people to lend money via the internet to people in developing countries through Kiva’s field partners. These partners can be microfinance institutions, social businesses, schools or non-profit organizations. Kiva includes personal stories of each person who needs a loan because they want their lenders to connect with their entrepreneurs on a human level. envi.si/17ncT98 envi.si/1a2IJwV 42
  37. 37. Zopa Cumplo.cl Cumplo is a platform that connects people and companies that have funds to invest (Investors) with other people or companies that need a Consumer Credit (Applicants). envi.si/13ymjMN Meet the future of branded currency Paul KempRobertson walks us through a new generation of currency and the the non-bank future of currencies. envi.si/15o5DvG Zopa is a P2P money lending service that allows lenders and borrowers to deal directly with one another, cutting out the banks who act as middlemen. envi.si/13yor7g Covestor Covestor allows you to compare and select a diverse group of money managers, financial advisers, and experienced investors. covestor.com/ 43
  38. 38. Zopa expects to lend £100 million this year, up from £60 million last year envi.si/19rbNyU 14 Intention Economy Proposed by Doc Searls, the intention economy is a recourse from the familiar mass market economy, where, for most part, sellers set the prices, and are in charge. Rather than having vendors blindly guess what consumers want, consumers should directly signal their intentions to the market. Vendors who match the individual’s terms will forge efficient, close-knit relationships and survive with real customer loyalty. Queremos TaskRabbit Queremos is a groundbreaking format that gets fans directly involved in the process of making a concert happen using crowdfunding. TaskRabbit is an online and mobile marketplace that allows users to outsource small jobs and tasks to others in their neighborhood. Users name the task they need done, name the price they are willing to pay, and a network of pre-approved TaskRabbits bid to complete the job. It was founded by Leah Busque in 2008 and has received $37.5 million in funding. envi.si/1d0Pdhc envi.si/16EaACr 44
  39. 39. 16 Crowdfunding Crowdfunding draws on the power of crowds and networks to solicit investments, usually in small amounts, for particular projects. It is a departure from the traditional model of investment, which relies on a select investor or firm. Though not a new concept, the internet and its platforms has expanded and accelerated funding to extraordinary degree. Beyond providing more access to resources crowdfunding, reduces costs, increases engagement, shifts mindsets on organizational possibilities and empowers small endeavors. It has launched artists, powered political campaigns, provided disaster relief, pushed software development, championed citizen journalism, fueled scientific research, and supported civic projects. EuSocio Is a virtual environment that brings entrepreneurs and investors, allowing to do online collective investment (equity crowdfunding) in micro enterprises and small businesses based in Brazil. envi.si/168WMx1 Kickstarter A company that provides tools to raise funds for creative projects via crowd funding through its website. People cannot invest in Kickstarter projects to make money. They can only back projects in exchange for a tangible reward or one-of-a-kind experience, like a personal note of thanks, custom T-shirts, dinner with an author, or initial production run of a new product. Gust provides the global platform for the sourcing and management of early-stage investments. Gust enables skilled entrepreneurs to collaborate with the smartest investors by virtually supporting all aspects of the investment relationship, from initial pitch to successful exit. envi.si/14uZicL envi.si/16O8wFU Gust 45
  40. 40. Zidisha Zidisha is the only peer-to-peer lending service to connect individual lenders directly with microfinance borrowers in low-income countries. It is based on the conviction that small-scale entrepreneurs in developing countries are capable of interacting responsibly with peer-to-peer lenders via a self-regulating web platform, without needing local intermediaries to communicate and manage loan transactions on their behalf. envi.si/1cyQnRN @petervan Peter Vander Auwera from SWIFT’s Innotribe provides an insightful stream of daily fintech links. envi.si/15YzAz7 Wonga Wonga.com provides small, short-term cash advances to UK consumers online. The company uses sophisticated risk and decisioning technology to make automated yet responsible lending decisions. envi.si/14IDzT4 Join the conversation Please note that this very much a briefing, and by no means an exhaustive list of the technologies and services on the market. We’re eager to involve our readers! Please email us to contribute. team@envisioning.io 46
  41. 41. Curious but confused? We are available to present an in-depth explanation of key report findings at conference keynotes or executive corporate briefings. presentations@envisioning.zendesk.com
  42. 42. what happens next? The interesting thing about money, is that it is a technology, a system and an abstraction. To be established, it needs to be defined, measured and accepted by more than one party. With this, its power lies in its mutability, or the many shapes it can take in the human experience. As today’s individuals become more networked, new systems emerge, the concept of value becomes elastic. The innovations identified in this brief – Bitcoin, AirBnb, PayTango, Quantopian, etc., – are all results of a rapidly connecting society. As the definition of money becomes more expansive, we are not only creating more wealth, but creating more opportunities for people to contribute and benefit from communities. This means massive shifts in power and paradigms. Having had held the financial system for centuries, slow-moving institutions – banks, governments, industries – are now poised for transformation. By moving from siloed products to interoperable platforms, static structures to networked systems and thinking exponentially, they have a chance of playing a role in these new economies. 48
  43. 43. Your support in downloading and reading our research goes directly towards building an ever-improving foundation for the future, and for that we are deeply thankful. This report represents small steps towards a long conversation between us and those who plan, build, implement and strategize future technology. We will always strive to explain our singular perspective of technological change in order to maximize potential positive impact on the future. If you want to be part of the conversation, please email us: mz@envisioning.io Michell Zappa
  44. 44. WHO WE ARE ARTHUR SOARES CINTIA FERREIRA ERIN GELD RESEARCH, CODE, DESIGN PROJECTS, PHOTOS EDITING, RESEARCH Design strategist, technology enthusiast and amateur cyclist. Otaku of all things. Spends too much time on reddit. A product designer passionate about photography, music, gastronomy and feminism. With a great admiration for technological trends, graduate of from the best online agencies and in charge of operations at Envisioning. Erin reads everything -- books, networks, closed captions, cities, long articles, classrooms, faces, beautiful things. She holds a bachelor’s in English from Cornell and a masters’ in teaching from Columbia. EVELYN LEINE THIARA CAVADAS THOMAZ REZENDE MICHELL ZAPPA DESIGN, LAYOUT RESEARCH, METHODOLOGY DESIGN, INFOGRAPHICS DESIGN, RESEARCH, METHODOLOGY Graphic Designer, Working with editorial design and exploring content for mobile devices. Music, weird, walk, people, little things, authentic, movement, faith and sunset. Knowledge hunter. From classical anthropology to cutting-edge methodologies, passing through communication, semiotic, gastronomy and my latest obsession, technological trends: I just want to understand it all. Thomaz is an architect but always preferred to build in the digital world. Infographic design, interactive design, programming, motion design and graphic design are his main skills. Founder and executive director of Envisioning. Tinkerer, thinker, builder, breaker, designer, hacker and related to the other Zappa. Born in Stockholm & raised around the world (currently in São Paulo). Sci-fi fan, photo buff, music lover, future shocked & loving it. Perpetually fascinated by tech and how it shapes society. He sees technology sprawling out of control and believes that given the right framework and tools, technological evolution can explained in predictable terms. Believes Envisioning to be vessel for achieving this vision, and that the better we question the fundamental nature of technology, the better of an understanding and more control we will have over the future of humanity.
  45. 45. THANK YOU A heartfelt thank-you to those who helped us see the research through Marcos Barreto Marcus Breekweg Henry Mason Michaela Barnes Alvaro Silva Kosta Peric Jennifer Sertl Steffen Christensen Josh Calder Bradley Leimer Monica Zappa Daniel Gusev Reinier Evers Fabio Madia Gabriel Levinho Berend-Jan Hilberts Lukas Praml Peter Vander Auwera Isabella Mulholland
  46. 46. envisioning the Future of money version 1.3 permalink envisioning.io/money/ Discussion facebook.com/groups/envisioningmoney/