Five Reasons Why You Should Embrace the “Sharing Economy” Today

You may have heard countless times, the phrase “sharing economy.” It’s basically an umbrella term coined to describe social and economic activity of the new age. It is an economic system in which assets or services are shared between private individuals, either free or for a fee, typically by means of the Internet.

As a speculation, by 2020, consumers will need banking services, but they may not turn to a bank to get them. There would be a different kind of bank that comes to mind. The sharing economy will to a large extent allow using information technology to find efficient matches between providers and users of capital, rather than automatically turning to a bank as an intermediary.

The global report of PricewaterhouseCoopers financial services technology 2020 and beyond: Embracing disruption examines the forces that are disrupting the role, structure, and competitive environment for financial institutions and the markets and societies in which they operate. Technological advancement in the industry is on an accelerating pace and financial institutions are readily adjusting their business models in the ecosystem today,

As one of the competitive technology-driven influencers for the next years, FinTech disruptors have found a way of infusing the sharing economy in every part of the financial system. These are five reasons why you should embrace the sharing economy today:

It allows convenience

With the rise of the sharing economy, more services are on the market that are making everyday life easier and freeing up more time for users. Uber is well known as they are making it easier and quicker for users to get around. It enables anyone with a decent car to earn extra money as a modernized taxi driver. Instead of wasting time on public transit, people can get instant access to rides.

Economic development

Time magazine ranked the sharing economy among the 10 ideas that will change the world, while PwC estimates that just five sectors of the collaborative economy could generate $335 billion in revenue for 2025. The sharing economy is here to stay, and it can positively affect the development of emerging economies, especially a for a country like Nigeria. The proven impact of the sharing economy in more developed countries informs emerging economies. The economy can increase sources of income quickly and effectively, promote the entrepreneurial spirit, and at the same time, trigger a wave of innovations that are needed to address the problems of many cities in emerging economies.

Featured article: Jumpstarting the economy: How the Government can drive growth through the credit ecosystem

More work opportunities

The sharing economy isn’t one sided. The people involved benefit from it. In a country like Nigeria where there’s a high rate of unemployment and the job market is saturated; the sharing economy provides opportunities. In my conversations with some Uber drivers, I’ve found that many of them have taken the jobs because they lost their jobs or they’re trying to overcome financial hardships. Services relating to the sharing economy are lucrative and they’re helping people earn more while doing other things.

Side hustle game on

The sharing economy has created unprecedented opportunities for making money. In this economy, having a side hustle seem more achievable. People have an easy entry into making money on their own terms and they start making things happen for themselves. An example is Lendsqr, a platform that allows you to become a lender and earn interest from it. Another example is Airbnb, where people can rent out their homes for a profit. It allows for more funds and freedom to try out different ideas. The barriers to generating additional income have essentially vanished because of these platforms.

Built trust

The sharing economy allows for trust to thrive. In the past, individuals were uncertain about providing their financial details online and this put many individuals, investors and organizations off. However, technology seems to rectify this issue. Trust is built by people when they read reviews posted by others, experiences and see ratings. This allows for transparency.

With the sharing economy experiencing growth, these are some good reasons why you should embrace the economy today.