In a world where bad news travels farther, louder and faster than good news, it is easy for the good news to get lost entirely. What we learn implicitly, therefore, is that it is not safe to trust the on-goings in the world. Given the rate of defaulters and frauds, the possibility of developing informed trust is narrow. Decisions, on the other hand, are made based on trust and information. In a climate where trust becomes a rare commodity, not taking a decision out of distrust seems to be the safer bet. How, then, do we carry out transactions and deals that keep the wheels going?
During uncertain times, it becomes challenging to maintain trust that may have been built over a period of time with credibility and proven track records. We are now experiencing a period when the world has been brought to a standstill to fight the pandemic COVID-19. The economy, with all its cogs and gears, has practically come to a standstill. Life as we know it has changed drastically and the world at large has experienced large amounts of stress in the face of the sudden drastic change and uncertainty. The markets have seen an all-time low and business has witnessed a slowdown like never before. The GDP for this period of 2020 could decrease by up to 40%. While the ability to take business decisions stands compromised because of the market trends, the trust deficit could further exacerbate because of the uncertainty of the situation. Knowing that every industry has been affected, it is all the more challenging to trust an organisation’s ability to carry through a deal.
In the times of COVID-19, statistical research suggests that vendors, customers, employees, borrowers, banks and other agencies could face enhanced trust deficit. We could easily see various ecosystems collapse. Banks could face a trust erosion with borrowers while companies could have a trust deficit with suppliers. The negative impact on the economy that buyers are anticipating is likely to become a self-fulfilling prophecy if suitable actions in a safe ecosystem do not intercept the perception.
In times such as these, building trust is paramount. The communication enabling business deals need to be substantiated to work both ways. Not only does the buyer need to be assured of the quality and availability of the product or service in question, but the seller also needs to be assured of timely and complete transactions. Establishing this in a climate of distrust is no cakewalk. This scenario further slows down the economy’s revival. In this current situation, the only way to break the pattern and the trend is to get the ball rolling.
There needs to be an ecosystem, with proven credibility and demonstrated resilience, where the decisions can be made with renewed and restored certainty and assurance so that businesses can start regaining their normalcy. In the current situation wherein the regulations and policies do not suffice to take first steps into business dealings, escrow swoops in to save the day.
Escrow provides an ecosystem with objective credibility that is self-sufficient. With a proven track record that is fair towards all the parties involved, it eliminates the challenges that come up due to trust deficit. By providing the safe and secure ecosystem for frictionless transactions, which is the need of the hour in the uncertain COVID and post-COVID times, more than ever, escrow can be the platform that enables the start of a business and the restoration of the economy.
Escrow provides what the economic landscape exactly needs now – a truthful, transparent and a purpose-driven platform for carrying out business. It is indeed the tool that can define the revival of the market and development, the tool that enables the phoenix to rise from the ashes. Certainly, escrow embodies and defines the new normal of payment platforms and is the reason why it retains trusts of its existing and new users.