General Thesis:
Cheap technology is changing everything. There’s a deluge of data being created by all economic participants. But, this time buyers, sellers and employers all participate and have access. It’s no longer just top down business infrastructure, but quickly becoming horizontal. Access is now greater than ownership. This means that in a data driven economy, areas that previously did not affect insurance and finance industries are starting to. Their biggest competitors in 5 years is more likely to come from outside their industry, as is of course any new revenue opportunities. The world in 20/20 will be one which is open source, built by crowd dynamics, collaborative, and all about the leverage of new data points created by businesses and their customers.
Specifically these changes are framed by (but not limited to) the following technologies:
Internet of Things: A world filled with traceable devices, which are added to all products and services experiences, because the technology costs are so low, they are cheaper than the packaging they come in (a few cents). By 20/20 18 billion consumer goods will be connected to the internet of things which dwarfs the internets current 3 billion human connections. This will allow insurers and consumers to de-risk and reduce cost of helping each other in a quantifiable world.
Quantified Self Movement & Gamification: Consumer are starting to use smart devices to track their human behaviour and gamify their lives to a more healthy and abundant lifestyle. Brands who participate and facilitate this movement will become indispensable partners in improved living standards in our post consumption, experiential economy.
Data Driven Insurance: Real Data versus Actuarial Estimations will change the approach to costing all forms of finance and insurance. Traditional actuarial models will be disrupted as real data replaces traditional demographic profiling of risk.
Big data & Little Data: People are starting to realise the power and economic value of their personal ‘little data’. Entrepreneurial innovators will assist the ‘everyman’ to take control of the digital footprint and help them leverage it as an economic currency, just like we do today with our social media followings. Little data will become our personal asset and the panacea the our current privacy concerns.
Crowd Powered Finance: How powered low cost technology is empowering entrepreneurs and consumers to innovate outside of the traditional finance system. We are quickly entering Sans Nation State financial services era – that is, monetary systems without a global or national control. Innovations like Crytpo Currencies, Peer to Peer lending, the Crowd Funding will be in full force by 20/20 with disruptive potential for the traditional financial systems. A fast forward repeat of what we have seen in the media industry as the move towards a decentralised economy continues.
All these innovations are yet to be dominated by an single player, in one sense, it is the start of the start as we move beyond the social era of the internet economy, to the connection era where technology envelopes itself in every industry, not just industries whose output lives on a screen. The game is open, and future is bright for those who embrace the change. And as always, it’s not about being a technologist, but understanding how the tech can be used. And then organising and collaborating with others to make it happen.
