Remember the old days, when few large-scale record labels almost monopolized the music industry. When recording and distributing a new album meant months of work and tenth of thousands of dollars in investment?

Few artists back then ever envisioned a world where almost every musician capable had the technology and funds to create her own label and to produce and market and distribute her own music globally. Via open music sharing and video platforms it even became the channel of choice for amateurs and your average garage band.

I envision a future where the financial services industry has undergone a similar transformation. Where standardized and freely available infrastructure and services will have replaced the closed-shop bank-internal networks. Where payments are exchanged directly between market makers. Where credits are given based on your social network reputation and the references you can Bri to the table. Where average advise is replaced by experts connected via dedicated investor communities and everyone can play a small role of being a bank or building his personal bank out of multiple services, providers and standards. A few innovative players have started to move into that direction:

– Check out the German FIDOR Bank where every community member can invest, give
advise and earn money participating in a financial exchange
– Or have a look at Family BHIVE which labels itself as Facebook of the Fortunate

What’s your thought on why we might not need banks in the future – or will we?

also on our anvalad blog.