Open Finance
With the introduction of Free Money much of the work of the financial services sector simply goes away. Bank accounts, debit cards and ATM machines simply become what they obviously should be: services that are nearly free to use.
Similarly, Real Transparency will eliminate the unfair advantage of investment banks and hedge funds over individual investors and render these middlemen less relevant. What is left is managed under our concept of Open Finance.
Open Finance is open both in the sense that financial information is brought out into the sunlight for everyone to see and in the sense that participation is available to everyone. The principal consequence of this wealth of open information is the empowerment of individuals whose direct participation in finance will vastly increase through innovations like peer to peer lending, crowdfunding and simplified securities markets.
At the same time, there will continue to be a role for investment specialists. Although they will no longer wield the unfair advantage of fractional reserve banking or information asymmetry, market experts will still be able to add value through “financial aggregation entities.” FAE’s will be structured like credit unions or mutual funds: individual investors will contribute to assets under management and will share proportionately in the profits (less a reasonable management fee). With these reforms in place, finance can return to playing an honorable role as a service provider to the economy – allocating capital rather than misappropriating it.