Wednesday, October 22, 2008

People transact more in time of uncertainty

Ukash recently reported a major shift in people buying Ukash vouchers to shop online. (Read more here). I must congratulate my friend Mark Chirnside on this good growth. Some of our customers also told us that their money remittance business tripled during the money crunch period as exchange rates started going mad.

This made me wonder if one could not look at the world of financial transactions in the following way. The more uncertain life becomes the more people do financial transactions. (See the graph). We are living in extremely uncertain times - this is a fact. Does this mean that people will have a need to do more and more financial transactions?

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