Reinventing the Finance

Ankit Raj
4 min readFeb 4, 2020

“We are never been connected before as we are now.”

From booking flight, buying food, watching entertainment series everything has become super fast and narrowed down into a smartphone. All these are possible because of the connectivity we got from the Internet. Web2 companies like facebook, YouTube, NetFlix, Spotify, etc did an amazing job so far in connecting & solving multiple problems on a single platform.

And to use these systems we are doing the transaction every time we are using the product.

Every morning people woke up and desire for food, gym, travel or buying of an asset. But never desire about doing 5–7 times payment the same day in the early morning. Payment is an utmost important part of the Internet era with automation not because it involves money but because its a means of doing the buying, selling the solutions provided by startup’s/enterprise.

Credit: Photo by Kyle Glenn on Unsplash

When we do transaction we need to do accounting also for it. Doing payment once, then accounting it another day, sending it to the accounting department, reconciliation again will take the whole process around 3–6 weeks. Transferring of money is done once but on the ledger, it has to be accounted multiple times. It all happens because the system is fragmented in multiple places.

This can be solved via the proper streaming of money. Proper streaming of money won’t save only lots of time +money but it will also help in optimizing the cash flow health of the company. Various NEO banks are mostly targeted to solve the same problem. All these are the part of auto-finance which is a better way of doing finance then existing one. But it lacks, transparency, automation, asset ownership, proper incentivization to be the part of the network.

What Next? → Automated Open Finance

Talking to any finance person who worked more than 15 years in the finance industry (auditing, investment, cash flow, insurance, customer service ) will give enough insights into how the market is getting better in terms of open data points. The number of open data points is increasing day by day to bring authenticity, automation, transparency, and fast auditing.

It sounds very scary to put the company balance sheet on an open ledger. But for the public listed company, it’s already been done but up to a certain limit. Day by day no. of data points is increasing to make the system more transparent. But verification is still done behind the ledger. Making data points, transaction data, and validation part open to anyone makes the ecosystem more authentic and transparent. Open Banking integration is doing a part of it, for the current finance ecosystem.

How Automated Open Finance would be helpful?

Let’s have an example..

  • Student debt plan: Through Open Banking one can get various parameters regarding credit and the social score of students and automate the loan process within a few hrs sitting anywhere (regulated location) across the globe. The system would be smart enough to do underwriting because student scores (credit+social) are verified by the third party. From getting the score, financing education and repayment everything would be automated. Here Open data sets and automation are key elements.
  • Gig economy: There is a certain group of the population who wanted to have a part-time job along with a full-time gig. With Automated Open Finance, people can automate their job application, hiring as well as payment according to their skillsets & qualification. Everything would be done on an open platform because it will help the system to make the intelligent decision for the next job application for the same candidate. Here also open data sets and automation are key elements.

There can be multiple use cases that can be built around it. Open automated finance makes the circulation of assets faster which eventually gives a positive push to the digital economy.

Cool!! I understood it but, how this can be achieved?

Business and tech both are equally important to achieve Automated Open Finance. The business part would be more or less the same in the current system but tech-wise there need lots of improvements. There is a need for an automated and connected network.

While connecting to the no. of systems multiple authorizations are required which makes the whole UX journey and security on stake.

Web3 plays a very important role in solving these problems. Web3 smart contract can automate multiple things in the trust-less and secured way of existing web2 solution. But the issue is providing sleek UX. We talked with more then 30+ enterprises regarding it and got to know they care a lot on the UX rather than underlying tech used.

Ideally, according to UX, user’s don’t need to be educated for the product journey. Product UX should be sleek and simple enough, that users can navigate the product by themselves and use it.

But also at the same time, they expect the system to be secure enough for their transactions or asset movement. If there is any security loophole, the customer is lost for forever.

There is a need for automated, connected, Secured and sleek UX networks.

I am scoping out the solution for the Automated Open Finance system along with the collaboration with various existing web2 users (enterprise+ Individuals). If this makes you curious and wants to join the journey, please drop your mail on this form.


Ankit Raj



Ankit Raj

Blockchain Engineer | Distributed system | Ex- Red Hat | Ethereum foundation grantee