Our Differentiation

The future successfull lending, investment and insurance business models will be based on a tryptic formula, condensed as KY3Cs:

Know Your Community, Know Your Corporate, Know Your Customer

The starting point will not be physical any more, i.e. a street with shops, a church, a bank, an insurance agent, a doctor...

The starting point will be the virtual community. WeChat, FaceBook, Tweeter, Linkedin, WhatsApp, enterprise social website... and the likes will be the starting point of identification, trust and circulation of information/services/products/payments.

The next stop will be with the merchants/service providers who will not be identified as a brand but as a collective enhancement that can be shared and recommended within a community or a corporate.

Community members are the most simple but core elements: sharing tips, expressing needs, giving advice, buying, exchanging...

The virtual market place has happened in no time in China: 700 million individuals are now enjoying the Wechat potential!

Back in 2011, I was asked to pitch in front of the European Regulator to organise a stress test accross 18 banks (in Greece) and 10 banks (in Spain). It was all about gathering data from banks IT systems. The methodology was simple to put together. The realization became quickly a nightmare. Structured data was all over the systems, not consistent, not exhaustive, not reconciled to the General Ledgers etc...

We also realized that projecting losses over 3 years and over the lifetime of a portfolio of assets was not only a maths exercise as when a State is in quasi-default, MNCs are in financial default, the Social System is not responding, the VAT is not paid back, why on earth would an individual still pay his debts?

Here we go. This is called behavioural attitude and this has nothing to do with traditional financial ratios like Debt/EBITDA, Free Cash Flows/Net Interests.

Unfortunately Credit Ratings are still only based on structured data which may be 1 year and a half old. Those ratings are used to accept or reject a loan.

Whereby unstructured data comes from live discussions among people, exchanging views, opinions, ability to judge such and such situation, immediate behavioural reactions...

In emerging countries whereby no Credit Bureau exists or when 70 to 80% of the population has never had a bank account or an insurance policy, why would structured data still be used to assess the risk (?) on a new customer?

Our FTT solution is unique and innovative as we believe that DLT has the potential to offer practical solutions to high volume, low value trades run by an extensive population of SMEs.

  Other initiatives in trade finance focus on how DLT can improve banks’ traditional manual processes and simplify the document flows of high value transactions between large corporates which are already backed by traditional bank financing (essentially part of the banks’ trade finance process).

 There is no initiative yet to use DLT solutions to enable commerce for SMEs and bring an approach that can ease the SME supply chain process and later on facilitate the financing and insurance applications.

This is our key differentiation, both in terms of target market benefits as well as application of the technology.