Sometimes the hen cannot help but to invite the wolf into the henhouse.
Mega-tech is changing the world. We are seeing industry after industry changed by companies out of Silicon Valley. This is putting every existing company at risk, no matter what the size.
For banking, the problem is the Internet came to money.
When the Internet enters any industry, it does two things:
A) It creates abundance
B) It destroys whatever is standing there.
We saw this happen in a number of industries throughout the first couple decades. Record companies, long distance phone carriers, and video rental outlets all felt the power of this medium. We presently are watching retail organizations suffer the same fate.
It is one thing to be obtuse and get run over from the outside. However, it is another if you open the door and invite the predator in.
We see news that Alphabet is now "partnering" with 11 banks to expand its Google Pay platform. Headlining this is Citigroup, one of the largest banking institutions in the world.
The agreement will enable Google to use existing accounts as opposed to having to get people to open account on their platform. On the surface this seems like a good step for the financial world, however, there is always a catch.
What does Google really want? Like all tech companies, there is one thing they value: data. One they have access to said data, they no longer need the other entities. And there is little that is more valuable than financial data. It tells a great deal about a person or a household.
Here is how Citigroup described the partnership:
It promotes the ability to “do it all from one location,” meaning “there’s no need to use a third-party app or have your financial information in multiple places.” Citigroup also highlights that “your money is protected using advanced technology to protect against fraud.”
In reading this, doesn't one start to think that this spells out why NOT to give the data over to tech companies like Google? If there is no need for a 3rd party app or financial information in multiple places, what need is there for these banks? Google can serve as the place where it all resides.
At the same time, we have the Great Reset that was talked about on a few occasions.
Debt-forgiveness is a topic of conversation. In the United States, the big topic of discussion is forgiving the student loans. Does anyone believe this is not going to come with strings attached?
Of course, this is all in the model of where we will get to a point where we will "own nothing". While technology allows for this progression, the way it is being implemented means things get turned around.
The reaction to COVID-19 has wiped out hundreds of thousands of small businesses. With a second lockdown on the way, hundreds of thousands more will follow. We see the market share of large corporations increasing as the competition is washed away.
Look at the retail and restaurant sectors. Small stores are dropping like flies as Amazon, Costco, and Walmart clean up. At the same time, the restaurant chains are better able to transition to mobile sales whereas the local eatery is crushed.
Without small business, there is no need for small business lending. Here is another area of banking that is rapidly declining.
Robinhood made a lot of noise with the introduction of its application. With its popularity among the younger generation, stock and cryptocurrency purchases went wild among this group. It reached a segment of the market that previously was not part of the system.
Of course, if we expand this concept even further, with development and growth, what will be the impact on major brokerage firms? Who need a Schwab when there is an application on your phone which already has all your financial information (Google?)? Stock trading could simply be added to the application and allow one to trade from one place.
The first prediction: You will own nothing and you will be happy
This is put out by the World Economic Forum. It is their own words. We see the future they are looking to create.
When it comes to banking, here is the problem. If people own nothing, there is no reason for debt. The forgiveness that was just mentioned with the strong ties to it means people will also give up their property. After all, if you are in debt, they will get rid of it in return for your 401K or IRA balance. Think if Social Security on steroids.
We see some of the seeds of this already. Consider the entire transportation sector and how that is likely to change. With autonomous vehicles, the idea of getting from one point to another completely changes. So does the idea of ownership.
With the introduction of the "Robotaxi" concept, we will see vehicle ownership plummet. This is one of the largest purchases people make, mostly via debt. Banks can look forward to a time when that particular aspect of their business is wiped out. Sure, there might be a few entrepreneurial people who buy a few vehicles for a business. However, like most things, this will be dominated by large companies that can buy the vehicles in fleet. Who knows, perhaps the likes of Tesla and Waymo (Google) end up with their own international fleet that they operate.
Hang on kids, the process is just getting started. Most of the world is asleep to what is taking place. The next decade will see major corporations collapsing as entire industries implode.
The World Economic Forum, Governments, and Big Tech are all teaming up to make this reality come to fruition. Let us not forget, at the top of the list for debt forgiveness is governments themselves.
Of course, they are a part of the equation until the technology companies decide to make them obsolete.
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