NEED TO KNOW MORE ABOUT BLOCKCHAIN?
Head over to our “Blockchain Explained” page to find out all you need to know.
If you already understand what blockchain technology is, then continue reading this page to understand why and how it can benefit your organisation through BITCUB.
CURRENT PROBLEMS FOR CREDIT UNIONS
Credit Unions all over the world are unique when it comes to the service and experience they give to customers. Credit unions score highly for integrity, empathy and for their highly committed staff, many of whom are volunteers. Another element in this success with customers is that credit unions are deeply embedded in the local communities that they serve.
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.
There is also a huge burden from a compliance/regulation/security perspective as central banks and other authorities attempt to protect institutions and their members interests. Included in this is General Data Protection Regular (GDPR) and the Payment Services Directive (PSD2).
Running these operations in an efficient and effective manner can be extremely challenging especially when many of the team are volunteers. These challenges have led to various credit unions either amalgamating or being absorbed into the banks thereby losing their mutuality. In extreme cases they go into liquidation and get wound up (Chareleville Credit Union, Ireland 2017).
Other problems often centre around legacy systems which are not fit for purpose in this digital age. Disjointed systems mostly lead to unnecessary duplication, confusion and this lack of transparency can cause mistakes to be made putting Credit Unions at risk. Systems used by larger banks are often overly complex, inappropriate and expensive to run (up to $500k for a one off license) . Electronic Funds Transfer (EFT) is still performed through the banks and attract the associated ‘middle man’ transaction costs and times. It is rare for these systems to be able to perform cross-border payments so remittances (cross-border payments usually back to a home community) are difficult. Western Union and other companies have a very lengthy process for transfers and often charge a 10% fee per transfer.
Other issues facing the smaller institutions concern member account liquidity as often they do not provide a current/checking account. This means they cannot compete with banks who offer a broader range of products and services.
Lending controls are another issue and some Credit Unions have gone into liquidation recently because of poor control over lending/deposits/assets ratios.
Relevance to a younger more tech savvy audience is also a problem and barrier to growth as institutions are sometimes seen as being stuck in the dark ages and not relevant to their generation.
Our solution is to provide a flexible, fully decentralised, integrated system which is solely there to satisfy the needs of Community Focused Financial Organisations.
It will be controlled by the members of these communities served by the BITCUB blockchain.
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.
The BITCUB A.I. engine will always select the best blockchain/DLT platform for the organisation’s needs, by using a weighted preference system for what factors are most important for any specific operation.
Operations performed in the blockchain will reduce processing times, improve the flow and responsiveness for staff and members alike and assist in reducing operational costs. It will allow staff to focus more on value added activities for its members.
The smart contracts will also ensure that compliance is maintained, and alerts are raised if ratios fall outside a certain limit so appropriate action can be taken.
NEW ENGAGEMENT PRODUCTS FOR CFFOs FROM BITCUB
- 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.
PARTICIPATE NOW AND RECEIVE A TOKEN BONUS AND LARGER DISCOUNTS ON OUR PRODUCTS AND SERVICES
Simply head to our Token Sale section and follow the instructions to send ETH to our crowdsale address provided and receive your BITCUB tokens now.