A playbook for Generating Business Ideas

2. FINRA for Collaborative Consumption and P2P Marketplaces
FINRA is a “self regulatory organization” for the financial services industry.
According to Wikipedia, “A self-regulatory organization (SRO) regulates an
industry or profession. The regulatory authority could be applied in addition to
some form of government regulation, or it could fill the vacuum of an absence of
government oversight and regulation. The ability of an SRO to exercise
regulatory authority does not necessarily derive from a grant of authority from
the government.”
One of the concerns people have over p2p (peer to peer) marketplaces like
Airbnb, or even Udemy, is quality and safety control. How do you know the
person you’re buying from is qualified enough to deliver…and not an axe
murderer?
Airbnb and Uber have faced resistance from government officials, who worry
that people could be at risk of harm. A regulatory authority would help reduce
those concerns. As a result, the company would have potential to get “mandated”
by the government and become a “monopoly.” However, I think it would be best
to serve, and be paid for by, buyers in marketplaces exclusively, so that
incentives are mutually aligned and so that markets can function properly.
Existing structures for the industries that p2p marketplaces and networks are
replacing have consumer protections and regulatory authorities. For example, the
food industry has the FDA.

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I think improved quality assurance would help peer networks prosper. Many
marketplaces have some form of native review systems, but they can be biased
because the companies need to serve the needs of both sides of the marketplace.
They can also in some cases be manipulated by the supply side.
FINRA is generating almost $1B per year in revenue to provide consumer
protection. If you believe peer networks are the future, I think this could be a
great way to ride the wave.