Ethan has been after one big problem for more than a decade. He can’t stop thinking and acting on ways to solve the problem that could be summed up in a quote from Elon Musk’s biography written by Ashlee Vance - "If people can conduct their transactions quickly and securely that’s better for them. If it’s simpler to conduct their financial life it’s better for them. So, if all your financial affairs are seamlessly integrated in one place it’s very easy to do transactions"
There is no way that the payment gateways that control the flow of money through the backend networks are going to coordinate to make financial transactions easier and in one place without a major shift in how the consumer centralizes his financial management. If you want to make financial affairs more centralized and therefore better for consumers you have to unify the field from the front first.
Elon understands that PayPal never completed the full financial flywheel and has been vocal about how the finance industry hasn’t solved the problem. "... At the time it was this weird almost a hybrid brand with X.com and PayPal. I think X was the right long-term brand for something that wants to be the central place where all transactions happen.”
If the X.com vision was to truly make transactions seamlessly together, then there would have to be an enormous coordination with the banking and payment systems. To get these systems to work together seems nearly impossible. Not even the rise of cryptocurrency using Blockchain, which was not in the initial X.com framework, solves the decentralized banking issues completely. We’re a long way from cryptography as the adopted security mechanism across traditional currency. Even though tremendous strides have been made in centralizing transactions, the solution still has to come from the opposite side of this transaction spectrum.
The Unified Financial Quadrant System (UFQS) sets out to solve the problem by starting with the consumer on the front end rather than “where all transactions” happen through payment terminals. This idea to bring the quadrants together has been a relentless focus for Ethan and it is now a growing business. The long-term goal ties your financial world into a relationship engine that will unlock where credit bureaus fall short for many and helps others get more out of their most valuable assets. The only way to do it is to build a consumer product that leaves no one out and unifies the four quadrants: Lending (I), Credit (II), Money (III) and Real Estate (IV). The goal of the UFQS is to help bring underbanked or unbanked consumers into a new level of financial fitness and let those that prosper already, prosper even more. It’s a Co-operation with the industry allowing the millions of finance and real estate companies to be seen easier. There are also entirely new technologies to allow easier cross adoption between quadrants. Moreover, it works with the mega providers in each quadrant who have helped consolidate a single quadrant field. The UFQS drives more revenue to all and therefore is favorable to the industry like Kayak.com is to travel or Amazon is to retail. Only when the consumer is in one place can you gain footing for the payment terminals to coordinate. A future partnership with PayPal makes a lot of sense here. When the financial world comes together it gets easier and benefits all.
Ethan is not saying unifying the front will what Peter Thiel had a dream for Paypal to do, which was to change the world by ending inflation, embezzlement and corruption. He is saying that moving towards a unified field of finance and real estate certainly will take out the bad players and ultimately makes things like mobile transaction and lowering your interest rate by increasing your home equity easier. There are plenty of ways to clean up the quadrants and Ethan is way past the blueprint stages. How is he going to clean up the quadrants? Just visit www.offeredge.com/pitchdeck. He is committed to the challenge to think big. 10x bigger actually.