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Alternative investing, scenarios in the new normal – Prepare to adapt or be left in the wayside

Sep 3, 2021

The global pandemic has changed how businesses work and how people live. Many traditional ways of doing things have faded away, making way for new concepts and practices. Consumption patterns and scenarios that are expected to work in the post coronavirus economy, including decentralized finance, have turned the old standard on its head.

Simply put, how people have chosen to make their money grow in the new normal economy may signal the state of things to come. Questions and trends on personal money management and business changes that are unfolding are coming into sight.

Forward-thinking individuals and businesses have found themselves seriously going for safe investment options. Safe investing in the post coronavirus world means opting for a number of non-conventional approaches. Indeed, some people have moved from merely thinking about possibilities to acting on their gut instincts and exploring promising options for financial growth.

Business direction in the post-Covid-19 landscape

Industry analysts or think tanks have noted which practices are bound to continue, which ones ought to stop, and which ones need to be accelerated in the  post coronavirus economy To a large extent, these influence or shape the strategies investors and most working professionals use.

McKinsey & Company laid out key themes revolving around near future challenges, including the mindset and behavior with which they can be met, based on constant discussions with business leaders. Besides remote working setups that lots of businesses have adapted, McKinsey maintained that among the key actions necessary in the new normal, when business will reopen, are non-reliance on traditional organizational structures, and acceleration of the transition to agility.

To define accelerate, to fast-track important things that must be put in place, is to refer to the need to keep up with the swift pace of change. The pandemic brought about major changes in business and overall life, and people need to step up. Moving quickly to resolve problems, without being overly dependent on chain of command, is crucial. It is time to discard age-old thinking that management takes place only in business setting.

Work, work, don’t stop and find a balance

Having a sense of urgency and collaborating with partners to map out a better future, as well as acknowledging just how fast the switch to contactless operations can be, are just as important. McKinsey underscored that collaboration, flexibility, accountability and inclusion are all vital, and executives need to dig deeper rather than merely using these as buzzwords, and find a balance.

In the new normal economy initial phase, actualizing plans like bridging the digital-physical divide with FinTech solutions to make transactions seamless for consumers are imperative. A good example is a peer-to-peer funding platform like Blend.ph, which enables people and businesses to take out loans in a fast, convenient manner, in the comforts of home. The necessary documentary requirements just need to be uploaded for the entire process to be successfully completed.

Unlocking the door to survival and long-term growth is a gradual process, and businesses surely need to adopt digital solutions. Digital solutions are intertwined with industry trends that have taken shape even before the pandemic, and they play a big role in money management. Investing during coronavirus can be done with a few clicks of the mouse, owing to digitalization.

On a broader level, there are clear benefits to decentralized finance and market economy in general. According to Adam Smith, the success of decentralized market economies is primarily due to  economic forces at play —  competition and self-interest (motivator of economic activity), guiding resources to their most valued use. Smith is noted for describing competition and self-interest in a market economy as an “invisible hand” guiding the economy.  Government plays a lesser role.

In certain countries, though, the government chooses to regulate. Nonetheless, countries able to give priority to  innovation, and reimagine the ‘new normal’ are the ones expected to bounce back more quickly from big pandemic-induced challenges. Another foreseen investment trend in the post coronavirus world is the high probability of tech-focused industries to withstand huge hurdles.

The Individual Initiative

There is no certainty on when the pandemic crisis will be resolved, so it is important to be well-prepared. Both on a personal level and business perspective,  it makes much sense to reduce unnecessary expenses,  plan, and learn investment discipline.  Once you have investible funds, begin thinking about and doing your homework on asset classes/investment opportunities to make your money grow NOW, particularly one that can generate high rate of return over the long term.

Peer-to-peer lending, as example, is a liquid investment less volatile than options dictated by the capital market (such as stocks), and everything can be done online. There is less regulation on how peer-to-peer loans operate, but automated tools help lenders ferret out good borrower profiles. As with most investments, there is risk, and investors have varying risk tolerance – they can make it or break it, the new normal investment trends that can be done online nevertheless can yield a positive outcome.

The pandemic has made many people realize the importance of having an emergency fund, and alternative investing during coronavirus can jumpstart it. However, with no plan to guide a person in tracking spending, no clear direction on how to increase income or reduce expenses, it may take years or decades to save a hefty amount for contingencies, much less allot an amount for investment purpose.

Seriously thinking about where money is going, or if it is being optimized, can lead people to double or even triple it with the passage of time. Having a practical budget can help achieve that, and so does using a tech-supported platform like Blend.ph, which can be a reliable source of funding, whether for business or personal purposes. Blend.ph also facilitates short-term fixed income investments and longer-term options. To learn how to earn as much as 30 percent per annum, email [email protected], or visit https://blend.ph/investor/.

As Adam Smith also opined, the goal of creating wealth can produce happiness, and if a large part of a society’s members is wanting and miserable, it cannot be considered happy and flourishing. With decentralized finance, or financing no longer obtained from traditional banking institutions, specifically alternative financing from trustworthy and long-running peer-to-peer platforms that advocate financial inclusion, underserved markets get a crack at living a better life.