During a webinar focused on Digital Wealth Management for one of our clients, I thought that I would poke the audience by discussing a Future World in which we all create wealth by investing in our Digital Assets. I started by referring to MyCreditScore, as a Digital asset, only because it is not that utopian as a concept especially in the US. In aSpring post, “Who’ll help Small Business get Credit Score fit?”, we looked at Fintechs that are focused on helping SMEs to monetize their Credit Score.
The second digital asset that came to mind was MyReputation. Twitter could claim to be a “Bank” that caters to this asset. Twitter users can get a Klout Score that can put them in lead tables of their specialty and that can compete head to head to other qualifications, from education diplomas to professional experiences. It can be monetized directly through speaker fees or consulting engagements. If Twitter, gave rebates to high Klout Score members, to use for the paid Twitter services, then they would start qualifying. Prosper could give rebates on their loans; to high Klout score members too.
Sentifi, the sentiment-based Fintech, offers MyScore, which measures online and offline behavior to get a measure of one’s relevance in global financial markets.
As such digital assets, dynamic measures of reputation in broad or specific areas, start competing; then they could become mainstream for recruitment and for entrepreneurial mandates.
RiskAnalyze, offers one number, MyRisk (Risk Number) so that financial advisors can use it to create customzie investment solutions for their clients.
Once the Transparency movement gains traction, we could each have a MyInvestment score that reflects our investment choice track record from discretionary choices to non-discretionary.
We are far away from an integration of our digital personality which in an ideal world should not be seen as separate form our offline persona.
In the current world, other companies are taking advantage of our own data, to create consumer products or services that we will want to buy. Our data is being monetized by businesses and we only benefit by being offered “suitable, maybe customized products”. We are far away from being able to use our own data, to gain insights that can be monetized.
Open APIs are linking businesses not end-users. Data brokers are serving businesses not end-users.
Of course, they are using end-user data, which is given for free to the businesses innovating in monetizing our data. Shifting from Data Ownership to Data usage for the end user, has not been the mission of financial institutions, either incumbents or insurgents. With the exception of Secco Bank.
Outside financial markets, there is more going on in terms of Data usage that benefit end users and. Telefonica Spain is a recent example of a Telco that wants to help its customers choose what data they share with the internet companies (Google, Facebook, WhatsApp etc) and moreso to give them a platform to monetize their personal data (a platform to be launched by year end).
“According to the operator, these data belong to the customer and must be the user who ultimately decides what to do with that information.The company has decided not to sell because it believes that such data are valuable and because the customer already pays every month.” Auto-translated Excpert from here.
Personal data marketplaces are a subsector on their own. An example of a Big Data startup targeting personal data is Datacoup which is in partnership with Stripe. Currently they are running a beta version, where they offer users $8 a month in return for their data (operating only in the US).
Handshake is a European company that also looks to disrupt Data Brokers and their clients. Their opening statement includes “Did you know that companies spend over $2 billion* a year in the US alone to buy personal data from data brokers?”. They are out there to challenge business like Experian, Irish based, focused on MyCreditScore, Digital asset.
“According to a survey from TRUSTe, a privacy management firm, the percentage of US adults opting out of online behaviouraladvertising increased from 27% to 50%. There is a trend going on that consumers want more control in who has access to their data and what can organisations do with that data.” Excpert: From Data Ownership to Data Usage: How Consumers Will Monetize Their Personal Data
Back to Fintech world; Secco Bank, the blockchain-inspired alternative bank is the one that stands out as a platform positioned to be the Vault of MyMoney and MyData; and the place to create wealth out of both traditional financial assets and Digital assets. Devie Mohan spoke with Chris Gledhill, CEO and co-founder of Secco Bank, and described the alternative positioning of Secco Bank which aims to offer clients their personal programmable interface.
Secco Bank isn’t looking to join the Open API movement, they are a step ahead of the game.
They want the customer to be in control of their money and data; they want the customer to decide what to share and most importantly to chose how to realize the value of their own money and data.
Their first product SeccoAura, is accepting now pre-registration on this alternative way of monetizing personal data. SeccoAura has launched in the fashion industry. SeccoAura customers, can earn Tokens if other users Like what they are wearing. If “Likes” on SeccoAura lead to a “Buy”, then the SeccoAura customer who wore the “Liked” item, will earn a referral bonus. The concept could be applied to any retail purchase.
Will you choose to play PokemonGo as you commute; or SeccoAura. At the airport, on the weekend, while shopping, will SeccoAura catch on? Will you switch between Facebook & Instagram and SeccoAura?
Will women take the proof of concept and jump start SeccoAura, a crowd-sourced alternative to the broken advertising model?
Will this become the next generation royalty payment program? SeccoAura is aiming to be an enabler of Data usage for end-users but also a creator of more data, more relationships, more insights; all leading to the creation of wealth through our digital assets, from the people to the people.
The P2P Fintech knowledge platform, Fintech Genome, has recently opened up a category “Neon Banks”. Check out the existing conversations or open a new topic in this evolving space.
Fintech Genome itself is a disruptor platform to the broken model of content marketing in financial innovation via paid media.
Read more here. Check out the existing convesations; Like the ones you find valuable; Start a new topic and earn Likes.
Daily Fintech Advisers provides strategic consulting to organizations with business and investment interests in Fintech & operates the Fintech Genome P2P Knowledge Network. Efi Pylarinou is a Digital Wealth Management thought leader.