How will people behave?

Typically, risk taking capacity is classified as low, medium and high. All financial investment recommendations are then based on this classification, whether they are investments split into mutual funds, equity, pension, long-term bank deposits, etc. by individuals, or investment decisions by companies.

However, based on our initial discussions and models, there is a clear distinction between ‘needs’ and ‘wants’ for any individual. Access to low-cost loans, credit and other forms of financing are typically based on ‘needs’, while lifestyle or luxury financing schemes focus on the ‘wants’. In our models, by removing the role of recovering the credit and by removal of the ‘case for need’, we will typically see the following patterns,

  1. Look out for myself: This category of users will typically stay in the system until their first payout or subsequent payouts. They will typically use the system only until they can meet the minimum criteria to request their payout and then not be in the system.

  2. We PRSPR together: These users are long-term participants of the system and will continue to be in the system for the common good. Their behaviour will look often prioritise the needs of the whole group and continue to contribute daily and will participate religiously in the decision-making system.

  3. Ride the waves: This category of users will decide based on the larger majority, the majority could be their well-wishers in their social network, or could be the influencers they follow, the general perception in traditional media, etc. These users typically would be the largest category of users in most systems.

How do we mitigate this some of this?

We have tested multiple models of human behaviour drawn from existing literature to evaluate and design rules for PRSPR, we are now ready to test these rules with a select set of individuals who wish to work towards a better world. These first set of participants will have the advantage of having a ground-level view of a new paradigm of financial inclusion evolve. Please join the waitlist to be one of these visionaries.