“It is ridiculous that we are living in a world where Amazon Prime can deliver to us in 2 hours and yet processing payroll can take 14 days!” The Speaker expects this to change dramatically in the coming years which may help relieve some of the societal inequalities. Human capital is the largest asset in the world that is essentially unsecuritized.

To the extent it is securitized, through advanced payday loans for example, human capital is largely paying the risk premium for liquidity at exorbitant rates. It should not be this way.

Source: Clocktower Group

The current system is an artifact of technological capabilities, according to the Speaker. “In 1960 you needed a payroll department to calculate payroll and move paper. Today, you can in theory do it instantly. Same way that certain markets now do continuous time compounding, payroll will move to instant/real-time.” He eventually expects everything to clear in real time.

Human capital will benefit from this, as technology will unlock much more granularity of human capital and precision in units of value as a tradeable item, which can help create new markets. In a classical sense, income share agreements are an example of this. But through technology one can now very easily verify and access parts of someone’s income subject to complex repayment schemes. All of this this unlocks value for people.