The BITCUB team are committed to the deployment of software and services to better serve the vast range of individuals in different socio-economic groups. Financial inclusion and wealth fostering are at the heart of everything we do.
Our platforms will provide a unique scaling system which means that FI’s/CFFO’s will be able to take advantage of our platforms. Expensive, cumbersome, slow and unwieldy systems provided by the larger bank centric organisations such as Tata, Fiserv, and Temenos can be replaced by a lighter faster, cost effective system which is easier to integrate.
There are 68,000 + credit unions in 109 countries servicing 231 million people in the world today who wish to further engage their existing members and attract new ones. With people becoming genuinely tiresome of the culture that still prevails among the larger financial institutions there has never been a better time for Credit Unions with their community driven ethos to deliver a great alternative.
With BITCUB, credit unions will be able to automate and regulate many inefficient internal processes whilst attracting new members with engaging and relevant products and services. They will be able to offer creditable remittance, microloans, and savings products with the potential of delivering higher returns compared to current offerings. It will also provide a suite of novel products that will help engage new members, including the younger demographic that may have eluded them up until now.
WHAT IS BLOCKCHAIN?
By allowing digital information to be distributed, blockchain technology created the backbone of a new type of internet. Originally devised for digital currency we have now found multiple other uses for the technology.
Blockchain technology has a number of qualities that make it the optimal platform for CFFOs to operate on:
- It is a distributed database. This has the benefits of ensuring records are truly transparent and verifiable, while the lack of centralised server means there is no single point to attack for hackers.
- By keeping identical copies of data across it’s network that requires multiple validations to add to, the blockchain is transparent and immutable.
- Smart contracts can be programmed to self execute when specific conditions are met. For example a smart contract could be programmed to pay out dividends to members if specific targets are met.
- Voting and governance can be accomplished using blockchain. By making the results transparent and accessible to all members involved, organisational decision-making can be made simpler and more trusted.
- AML and KYC have potential for adoption within the blockchain space. The opportunity for cross-institution verification of individuals and organisations can greatly reduce the currently labour-intensive and costly AML and KYC procedures for many institutions.
For a simple and understandable explanation of what a blockchain is please see the video below, or to find out more about some of the common terms used within the blockchain are check out our glossary of blockchain terms.
The core difference between current systems shown on the left below and blockchain based transactions on the right below is that transactions are not managed centrally but rather in a decentralised network where each participant (node) has a vote on a transaction.
But decentralisation is not the only efficiency which can be achieved by using a blockchain, other benefits include:
- A blockchain provides an enhanced level of security, increasing the security of the system from hacking and fraud.
- It provides an easy mechanism to allow users to securely transfer the assets between parties and facilitates easy audit of user accounts.
- Using a blockchain technology does not mean that the system will need to be a public ledger or open system if this is undesirable. And our Bitcub modules and AI algorithms will help choose the best form of blockchain or DLT for your organisation’s needs.
The system may remain totally private if desirable. The key differences between public and private blockchains are that private (or “permissioned”) blockchains require participants to have an invitation or permission to join. This places restrictions on who is allowed to participate in the network, and only in certain transactions
THE BITCUB BLOCKCHAIN
In this new digital age it can be difficult for Credit Unions and other community-centric financial groups to provide products and services that people now expect. Our BITCUB blockchain will provide smart contacts that self-execute when the required inputs are entered.
These will include KYC, transactions, loan applications, savings products, internal auditing, report generation etc. Because there are no middle men in the equation, members will be able to transfer funds to anyone on the planet. This will allow credit unions to offer a new transfer service based around remittances. This allows us to provide a flexible, fully decentralised, integrated system which is solely there to satisfy the needs of the credit union community.
The platform will be powered by Artificial Intelligence always establishing the most appropriate ‘vehicle’ for every transaction based on customer preferences. This means that our technology will be able to choose the best way for the user’s tasks to be accomplished based on their needs; our algorithm will take into account the weighted importance for the user’s relating to factors such as costs, speed, security, etc.
In the above example Customer 1 may be partnered with Nano because of the zero fees, good security, reliability and transparency of transactions. This would meet their specific preferences.
Customer 2 however may be partnered with Stellar who provide quick transaction times and an anchor network which allows conversion to local fiat currencies.
The machine learning and AI characteristics of the system mean that it is dynamic in nature always selecting the best technology for the job. This takes the guesswork out of the process for those individuals in the CFFO’s whilst at the same time optimising their fee structure.
The below matrix shows an example of how our AI and machine learning algorithm will examine an array of services across a set of criteria. Both organisations and individuals using the platform will be able to provide their weighted preference for a transaction or operation and BITCUB will determine which platform they should select.
The criteria displayed in the matrix shown include average time per transaction, network speed (transactions per second), cost (in USD), security, usability, fungibility, reliability, and how proven the service is in terms of consistent demonstrated performance over time. These values will be algorithmically updated to ensure accurate and up-to-date selections.
This unique aspect of BITCUB will provide efficiency and cost reduction, ensuring the best possible service for BITCUB organisations and their members.
THE NEW ENGAGEMENT PRODUCTS WE WILL PROVIDE
- An area as yet untapped by the majority of credit unions. Over $500 billion in remittances are sent each year and the current processes are both cumbersome and costly for sending and receiving parties as significant communication is required and the providers such as Western Union charge high fees. Credit unions would be able to provide this service through the Bitcub app at a reduced cost and at a greater convenience.
- The Bitcub app will have a built in member voting system allowing members to vote on important issues. This will make them feel more engaged.
- Draws and Sponsorship
- A big element of Credit Unions in countries like Ireland involves community promoted activities such as car-draws whereby people can win cars. The Dapp will improve on the inefficiencies associated with current paper based systems also allow members to partake in these draws. It will also ensure complete fairness and transparency regarding entrants and winners.
- Bitcub will contain ‘Learn and Earn’ apps provide a positive and engaging way for children to learn but they will also reward children and families in the process.
- Community Credit System
- A credit system will be provided to reward positive behaviour in the community. So for example if someone saves a child from drowning in a river their community can reward them with BITCUB credits. If a child successfully completes a quiz on their 9 times tables then they will earn points which can be converted to currency at a later stage. Direct sponsorship of activities and events will be possible through the system, reinforcing the community focused nature of the CFFO for it’s members.
BITCUB’S DISTRIBUTED BUSINESS MODEL – HOW DO WE MAKE MONEY?
Financial Organisations will be charged a fee based on modules deployed, the number of members, assets and the volume of transactions. A smart contract will calculate the fee and this will be paid monthly. The package can be upgraded at any time and there will be enhancements made based on member feedback, new requirements for efficiency improvements and regulatory requirements.
This licencing fee will be very competitive with existing systems which can be €1 per member per year. Economies of scale will come into play as they will benefit from further cost reductions by using more of the available modules. CUSOs can also benefit as they employ these module across multiple organisations. Getting a small percentage of every transaction.
With BITCUB we want to ensure that transaction ‘friction’ in terms of cost speed and usability is kept to an absolute minimum. Although free would be ideal for members a small fee will make users value the service more and will help prevent spamming.
The plan is to charge a fee of between 0.0001 and 1.5% for transactions. This fee will be dependent on the size of the transfer and the type of account held. This will be calculated by the smart contract associated with the individual, with new contracts being automatically generated when circumstances change.
50% of all transaction fees will go to BITCUB to maintain and upgrade the network with the other 50% going to the CFFO.
If every credit union member were to spend $1 a year for these services the annual income for this would be $220 million. The intention is to have 10% of this market in three years going to 30% or $66 million in 5 years.
10% of BITCUB company profits will always be used to fund community based projects that help alleviate the poverty cycle that community members can get trapped in.
BUSINESS DEVELOPMENT AND NEW PRODUCTS
Bitcub will continue to develop relationships with credit unions and representative organisations on a global scale offering new products every three months to spike interest. These announcements will be made in the trade publications and at various conferences and in so doing raising the profile, increasing credibility and increasing the value of the currency. Credit unions and CUSO’s who invest in the Bitcub will be able to take advantage of their discount rate for the purchase of products and services into the future.