24.6 C
Sunday, September 20, 2020

How is The Sharing Economy Model Influencing Personal Finances and Business Decisions?

- Advertisement - data-full-width-responsive="false">

After the 2008 financial crisis, people have come to reevaluate their relationships with their credit unions, banks, and other financial institutions. More and more people are trusting corporate lending parties lesser and opting for alternative fund-raising methods.

- Advertisement -

It was primarily due to the lack of financial services that could replace the traditional funding options. The sharing economy platforms rose up to the need for the American citizens, and we have seen the rise of Peer-to-Peer (P2P) funding and crowdfunding options all over the world ever since.

The charms of crowdfunding

Crowdfunding and P2P funding have been around for almost over a decade now. The 2008 crisis simply gave these shared economy models a push in the right direction.

Renowned platforms like Zopa and Lendino provide P2P services to everyday people of their country (UK and Denmark respectively) and the entrepreneur population alike. They are changing the dynamics of personal finances drastically as well since they are now setting up campaigns to drive fundraisers for personal treatments, home building activities, social causes, animal welfare causes and so much more.

People are choosing to crowdfund their medical expenses rather than approach a personal loan company to cover the costs. You can visit debt consolidation to get a complete look at the measures that can help you become an investor in the current market.

The stats that attract more people to the sharing economy

In the US market, the P2P market share grew about 84% in each quarter between 2007 and 2014. The market share of P2P companies and crowdfunding platforms are increasing nebulously. As per the predictions of PWC, the market share of P2P platforms can grow up to a whopping $150 billion.

Their rapid growth can be due to their sharing model. They are creating massive amounts of riches and sharing them with the users and providers alike. They have been providing real value to all customers and the micro-entrepreneurs with great ideas, who otherwise find it very difficult to raise funds for realizing their ideas.

These sites are turning regular users into investors and entrepreneurs into borrowers. Crowdfunding platforms are turning dreams into realities for an uncountable number of people across the world.

The concept of funding a business proposal or a social campaign or personal expenses using a public platform is becoming increasingly popular all around the globe.

Even in third world countries P2P lending platforms and crowdfunding companies are the necessary tools that fund over one-third of the start-ups and SMEs.


Famous companies started out with crowdfunding

Companies like Uber and Airbnb started out with crowdfunding in their initial days. The declining transaction costs are going to fuel the leading sharing economy platforms across the USA and the world.

The UX optimized platforms with mobile navigation options provide all the possibilities the customers need, a myriad of goods and services, which can affect their investment decisions. Now, all users can just browse their P2P investment options and crowdfunding investment options using their smartphones, tablets or PCs.

The sharing economy applications and models eliminate the hassles of the traditional models. For example – in case of Airbnb, people, motels, hotels, and lodges can rent their rooms out to interested parties.

However, this process just bypasses the requirements of traditional leasing and processing fees. It is an impactful result of the declining costs due to the shared economy models people are enjoying right now.

More and more people can access the pros of this new economic model due to the constant rise in the rate of smartphone usage. It is providing a critical boost especially in the developing markets where smartphone penetration is reasonably high.

Gig economy provides increased money making opportunities for all

At a personal level, this kind of a gig economy is making many products and services available to the everyday people. Aside from the fact that this economy is bringing more wage-earning possibilities to the commoners, it is also decreasing the cost of the services.

Sharing economy is now providing better opportunities to earn some extra cash for the typical users like you. It is possible to share almost anything thanks to the new platforms.

Whether it is an additional room, a toolset you do not need anymore or a car you can use to shuttle people across town for cash, these platforms help you share your shareable assets with a set of customers.

The gig economy puts these prospective customers or buyers in touch with the service providers or sellers. The terms of payment and service are transparent, thanks to the policies of these platforms.

Turn a user into an investor

A sharing economy provides the perfect fertile ground for the founding of a startup or an SME. The owners can crowdsource the funds, share the stocks or equity with investors, find their customers and pay their creditors off, all using just one platform. P2P lending sites like Kiva allow standard users to become investors in a couple of easy steps.


You can invest money you just received as a Christmas bonus or on your birthday in a new company. According to a popular P2P funding site, their investors enjoy a minimum of 5% in returns when they invest in the safest options.

People prefer the higher risk companies as they generate better returns, sometimes over a 100% of what they had initially spent. These companies often offer a share of their equity as well (rewards-based crowdfunding) to the investors against their funds.

You can become the commodity

Have you ever thought of marketing yourself? Are you good at babysitting or do you play the cello? Just list your talents up and name a price.

The shared economy is giving excellent self-marketing opportunities to the talented folks all over the world. Whether it is bartending services, beauty and massage services, housekeeping services, automobile repair gigs or music gigs, you can make significant extra cash.

The only risk with sharing economy or gig economy is that it is tech-based. Always be careful of the website security, your safety and the safety of your assets while leveraging the best of the new gig economy.

- Advertisement -
Guest Author
This post was written by a Guest Author. Please see their details in the post above. If you'd like to Contribute towards the growth of The Xplorion, please check our Contributor Page for details about how YOU can share your tips with our growing community.
- Advertisement -

Trending Now

LaserDisc vs. DVD: Everything You Need to Know

The Laserdisc is an older technology. It offers a better image and sound than videotapes and is comparable to a DVD. But...
- Advertisement -

Startimes Subscription Prices, Packages and Channels List in 2020

StarTimes Nigeria is one of the popular cable TV providers in Nigeria. This service is a subsidiary of a Chinese based company...

10 Best Places to Download Bollywood Movies

Do you spend hours watching Bollywood movies as I do? Have you been in search of the perfect sites to download the...

7 Best Offline Racing Games for Android Users in 2020

Are you a real gamer? If you are one, then you will know how exciting it can be to experience the adrenaline rush that...

GB WhatsApp, WhatsApp Plus and OG WhatsApp Tips and Tricks

Checkout the new GB WhatsApp Tutorial. Hello, welcome to WhatsApp Plus, OG WhatsApp and GB WhatsApp tips and tricks. For the sake of this article,...

Best Low Size PC Action Games For Your Old PC/Laptop With Low Specs

Gaming time is one our favorite time and nothing beats the ability to play high-quality games on our PCs but like some of our...

9+ Infinix Phones With Best Camera in 2020

People purchase smartphones for different reasons, and it is no brainer that the camera specifications is one of the features they look out for...

DStv Channels List, Packages and Prices in 2020

Thousands of people in Nigeria have put their trust in DStv to provide them with the very best of television shows and programs. DStv (Digital...

GB WhatsApp Pro, OG WhatsApp Pro V8.10 (GB OG Replacements) Latest Version

Good day peeps, the latest GBWhatsApp is here... and it is called the GB WhatsApp Pro Remember earlier, GB Mods the maker of GB WhatsApp...

StarTimes Customer Service Contact and Simple Error Fixes

StarTimes has fast become one of Nigeria's most used cable or digital Pay Tv. Despite its vast customer reach, the company has...

How to Fix Home Key, Recent Key and Notification Bar Not Working?

There is a bug in the Android OS that dates back as far as the Lollipop Version and it is one of the most...
- Advertisement -

Related Posts

What is Mobile Banking and Its Benefits

This is something that many of us are already doing. We connect to our mobile banking app to deposit a check, return...

Ways To Save Are All Around You

Have you ever stopped to think about all the things you come across every day that can help you save money? They're everywhere! Sometimes we...

Take Charge Of Your Credit

There's just no way around it, unless you have a secret stash with thousands of dollars hidden somewhere or happen to be lucky enough...

What Are Google Penalties and Should Your Business Be Worried About Them?

Google is known to be the most powerful search engine on the Internet. This means that being with Google ensures you are a step...

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.