What Is the Biggest Problem in the Financial Industry Today? Trust!

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Actually, it is the lack of trust. Personal finance is one of the most sensitive aspects of our lives, and it is often difficult to talk about it. That is why MoneyRebel, a start-up with many years of experience and financial advising expertise, decided to do something that has never been done before. To solve the “trust issue” we will place trust on a blockchain.

Let’s start with the inside story of one of the outliers of the financial industry, wealth manager Mitja Vezovisek, CEO and co-founder of Money Rebel, commenting on the lack of trust we are facing.  

“More than a decade ago, when I started out as a personal financial advisor, I found out that the financial industry, the financial game is rigged. There are just so many fake authors, advisors, testimonials and fake reviews. And so, the financial industry and especially advisors present themselves and the solutions they are offering in a way that allows them to share products and services on a high commission, or to promote plans that are not proper for the client,” explains Mitja Vezovisek.

Just like news these days, advice can be fake as well

“As we know today from social media or even recent elections in the U.S., a lot of information can be fake. As such, we are easily exposed to fake news, fake reviews, and yes, we can even stumble upon fake identities of advisors. As an advisor, I have been trying to solve this problem for over a decade. Finally, we found it. With the emergence of blockchain, I saw an opportunity to change the game, and we decided to place the identity of advisors and the client ratings/reviews on a blockchain. We all know that on blockchain, it is not enough for one single client to claim someone is a “brilliant advisor” – it has to be confirmed by multiple sources. Therefore, when we place trust on the blockchain in this way, we eliminate the doubts about advisor’s identity and their work.”

He also compares the MoneyRebel advisory platform to Uber. Why? Simple. When you drive with Uber and the drive is over, you get the opportunity to rate the driver. MoneyRebel will do the same. Only after you engaged with an advisor, will you have a chance to grade them. Still, we are aware that a single grade is not enough. The advisor’s grade has to be confirmed by several clients.

Additionally, not only has it not been done before, but it is also not limited to financial advisors. There will also be many other advisors, as the MoneyRebel Platform will represent two marketplaces. Business-to-customers relationship will be there to connect advisors to clients, and business-to-business relationship for the connection between different advisors.

“It is not only clients that struggle to choose a good advisor to help them manage their money these days – it is advisors as well who struggle to find trustworthy specialists in certain field, like crypto, insurance brokers or tax advisors, to help them solve their clients’ problems. Imagine yourself being a fiat advisor in need of crypto advice. How would you know which advisor is really crypto-skilled and good at their job? With the help of their clients! The community will tell you who excels at their job so that you will be able to connect with the very best. The same applies for tax advisors, insurance advisors etc.,” detailed Mitja Vezovisek.

The rating is not the only thing MoneyRebel will put on the blockchain, there are also advisors’ achievements, licenses, attained education, etc. It is entirely possible for someone to have a fake profile on LinkedIn; people can endorse them as crypto-skilled since they like them and know them in person, but perhaps they ever even worked with them. Well, on the MoneyRebel platform “liking someone in person” won’t be enough, they will have to prove they are good through their actual work.

How will we do it?

Advisors’ information about expertise and trust will be put on a blockchain to create ratings and an identity vault. Of course the question of how this will be achieved is a valid one, and MoneyRebel CTO Miha Pulko has the answer. “We will use an identity vault, so that we will always know that an advisor we are really talking to is who they claim to be.”

Identity vault on the MoneyRebel platform? “Yes, since the MoneyRebel platform will have an integrated Ethereum wallet that will include a secure identity vault to provide users with an interface to manage their identity on MoneyRebel. That’s how we will not only know that there is a real person behind the profile, but also that this is the exact person we are looking for. Same goes for ratings – with the help of the Ethereum network, those will be stored on the blockchain forever. And that will bring us a step closer to trust and transparency in the world of personal finance.”

The answer to why we need blockchain is obvious: because of its decentralized and cryptographic nature where modification of historic data is practically impossible.

“When you save something on blockchain, it becomes immutable. There is no central identity that can change that and with a big community ranging from miners to developers behind the ethereum network, we’re confident that it will remain that way in the future as well.” explains Miha Pulko.  

And not only that – advisors will have to deposit MRP Tokens into the MR Platform’s wallet. These will act as insurance if their advice proves to be fraudulent. Fair? Certainly for clients and other advisors.




via CCN https://www.ccn.com
May 19, 2018 at 11:36AM

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