An integration of personal finance management with a crowdlending marketplace.
iBAN Wallet will be an app that helps you control your finances, allows you to transfer money to your friends, and creates an interaction between borrower and lender, taking money management, investment and borrowing to a completely new level. Through the app, users will have a modern money management tool, integrated with gamification and risk management.
The app will feature a live updating investor's marketplace where lenders can train their keen eye through loan requests in the search for a smart investment.
On the other side, borrowers will state their loan requests in order to appear on the marketplace. The borrower will be able to specify certain variables of their contract, attracting investors with better terms than the competition.
The iBAN Wallet is a combination of what we consider to be two exploding markets - Sharing Economies and Crowdlending.
Sharing Economies such as AirBnB and UBER manage housing and transport - iBAN Wallet wants to manage money.
Crowdlending (also known as peer-to-peer (P2P) lending) has disrupted the banking world with its sudden growth in popularity and viability as a sound investment model; an exciting alternative to the traditional banks. iBAN Wallet aims to put the power of investment, and the capacity to obtain safe, fast credit back in the hands of the user.
Substantial accomplishments to date
We currently have almost £2M in requests for loans from users. We have already launched 3 rewards crowdfunding campaigns on crowdfunder.co.uk, with a 100% success rate - in the UK and Germany, and hope to also enter France, Argentina and Mexico in 2017, according to our existing plan.
According to diariodigital.com.do, we are pioneering financial digitalisation in Latin America.
The app has not yet launched and we still require the necessary regulatory approvals and licenses to offer peer to peer loans and operate a payment gateway. There is no guarantee that we will obtain the necessary regulatory approvals or licenses to be able to operate as a financial services firm in any jurisdiction that we seek to enter.
Our business model is simple: if a borrower receives money, we collect a fee for administration and legal diligence as a percentage of the total transaction, dependent on the specific arrangement of terms agreed with the borrower.
By creating a financial Sharing Economy, we can be cheaper, faster and easier to use than traditional institutions.
Use of proceeds
Our objectives with this round of financing are to:
1) Improve the design, functionality and usability of the iBAN Wallet prototype App so that it can be launched to the global financial consumer market.
2) After finishing the final prototype, we will need to obtain the required regulatory approvals and permissions to operate as a P2P loan company and payment gateway and hire a full technology and marketing team ahead of our next equity campaign where we intend to target
a £1M raise in mid-2017.
We want to tap into the already large number of people in the UK, Europe and the US who are disillusioned with the traditional banking system and are waiting to embrace an alternative finance solution that gives them better control over their money.
Savers in the UK alone hold over £700bn in their bank accounts earning very little interest, as well as 13 million people who invest in an ISA (either Cash or Stocks and Shares) - many of these people are looking for a way to earn a larger return on their money, which iBAN Wallet can offer.
iBAN Wallet is for anyone who wants quick access to loans of any size. The traditional barrier to microloans is accessibility, and the time-consuming nature of applying for a loan - with this process in the palm of your hand, and the reception of the money potentially immediate, this barrier is removed.
Applying for loans is a process long requiring modernisation; it is manual and time consuming, due to its lack of automation. The iBAN Wallet brings speed and usability to a previously notoriously clumsy process. Using iBAN Wallet requires only a mobile phone - in 2014, 80% of adults in developing nations had mobile subscriptions. By 2020, it is projected that 90% of these adults will own a mobile phone. We believe this market is present in every country, and we want to gain their business by providing a quick, easy and reliable system that they can access from anywhere.
Characteristics of target market
Our target market has become known as the Crowdlending marketplace or "Sharing Economy". The concept of this Crowdlending model was launched by Zopa in the UK 11 years ago, who have now lent more than £1.8bn of consumers money, and have a valuation of £500m. A Morgan Stanley study estimates that the global marketplace for Crowdlending will reach $290Bn by 2020, with a CAGR (Compound Annual Growth Rate) of 51% from 2014-2020.
But we want to go further, accessing the massive global market of mobile phone users. A study by the McKinsey Global Institute found that digital finance can provide access to financial services for 1.6 billion people in emerging economies for the first time, a market that is not currently being tapped.
Our successful crowdfunding campaigns have built an initial customer base of iBAN investors in the UK, Germany and Spain. We will continue to use this strategy in each new country we enter.
Following this, some of those customers have become brand Ambassadors, increasing brand awareness and gaining commission for referrals. We are growing this sales network to include Financial Advisors, who will leverage their experience in locating new customers in each target country to find and advise lenders on the best investment option for them.
The core of a Sharing Economy is social interaction - we intend to focus the bulk of our marketing effort on social media platforms, driving custom to our business through the creation of high quality content, market-leading products and SEO optimisation; building our corporate identity.
We have gathered a committed team of talented individuals, with a wealth of expertise in finance and technology:
1) Web Developer - landing page, pop ups and website in English for UK investors.
2) Video Designer - to prepare informational videos on iBAN Wallet.
3) API Integrator - to integrate mailing, HootSuite, Zendesk and automations for the first communication with investors.
4) Investor Relationship Manager UK.
5) Investor Relationship Manager in Spain, France & Germany.
6) Four Community Managers - creating social media communities to attract the attention of investors.
The iBAN Wallet is the first application to our knowledge to deliver this suite of financial Sharing Economy functionality.
By providing this functionality in a mobile phone application, we have a competitive advantage over other Crowdlending platforms, who do not offer the same level of comprehensive money management for lenders, and do not offer loans in many of our target countries.
Our other primary competitor is the traditional finance system (banks, co-operatives, etc.), who do not consistently match the rates of peer-to-peer lenders, on either investments or loans, due to their outdated business models.