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Banking Platform Deck

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Luis Molina

on 25 November 2015

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Transcript of Banking Platform Deck

bitcoin accounts for their costumes
accounts in any other current or future crypto-currency
loan products in bitcoin or any other crypto
credit lines, credit cards, debit cards or almost anything they currently do

customers are able to freely transfer FROM and TO any of them including fiat accounts, using any of the channels currently available *

internet banking
mobile banking
phone banking

customers are able to withdraw funds from their crypto-products (turned into fiat) at **

any branch of the bank
at any ATM network the bank is part of


+36 70 405 3230

we convert traditional banks into crypto banks
we enable virtual crypto banks on the cloud
Guillermo Villanueva
over 27 years in fin-tech
ex-Microsoft (9 years)
senior consultant
engagement manager
consulting practice manager
financial services practice manager
honors & awards
"Circle of Excellence"
"Make it real"
"GM Award"
Luis Fernando Molina
over 15 years in fin-tech
internet security
(7 years)
internet banking systems (10 years )
computational design
(3 years)
4x entrepreneur
co-founded Nomad Inception in 2013 in Dubai
surpassed everything done in 1,200 years on geometric patterns using computational design
became such an expert on the field that he gave lectures on islamic patterns including one at the collage of architecture and art of the "capital of islamic art" of the arab world: Sharjah, UAE
extreme entrepreneur
Luis Fernando Molina
We are not bitcoin guys or software guys trying to figure out how banks work. We have done ourselves core banking systems and other mission critical banking infrastructure. We are fin-tech veterans having done this for decades. We are also experienced entrepreneurs. We have a strong knowledge and experience selling, marketing and distributing software, since while working at Microsoft Corp we used to be engaged in related activities.

We convert traditional banking institutions into crypto banks and we enable new banking institutions of the future to operate virtual crypto banks by providing them a turn-key solution on the cloud.

We extend the IT infrastructure traditional banks currently have in a way that allows them to create
in their own systems
"crypto products" adding all the missing parts to make that happen. We provide them with a smart wallet technology. We also host on-cloud our crypto banking platform to allow new financial institutions of the future operate virtual crypto banks.

To take advantage business wise of the two mayor macro trends starting in these days at the financial industry in the most efficient way possible.
market opportunity
banks and
savings institutions in the US *
more banks and saving institutions in the rest of the world **
credit unions ***
traditional financial institutions
* https://www.fdic.gov/bank/statistical/stats/2014jun/industry.html
** SWIFT has 10,500+ members http://www.swift.com/about_swift/index
*** world council of credit union members www.woccu.org
#2 - traditional banks current problems
a) Traditional banks can see the disruption coming. They see that crypto networks are a disruptive technology that brings a huge opportunity for those who can take it quickly enough and a great threat to those who can't. They lack the agility to come up with a solution by themselves and their traditional platform providers aren't helping. They need to move/react quickly but at the same time should have the agility to adapt to this rapidly evolving landscape.

b) The only way they see so far is to connect to and rely upon a set of startups in order to be able to run a crypto bank. They understand the risk of dealing with companies that can meltdown overnight or not fully comply with regulations. They also face the fact that converting them into a crypto bank is none of these startups core business.

c) Integrating one by one each of their systems to this new technology seems like a huge and resource intensive project.
#1- third world financial exclusion problem
business model
problems solutions

we will compete with

new entrants
general purpose crypto-platforms like GEMS, Chain and Blockcypher
huge established companies that might develop the same products with similar characteristics and a huge customer base

Note: Giants like FISERV are usually buying smaller companies instead of developing new technologies

if our concepts are copied

we would still have a superior product by design
we will pursue patents for our key technologies

sales & marketing
start converting traditional banks into crypto banks
start the on-cloud service
investment schedule
when banks step in with our technology it will mark the end of an age in the crypto universe
the world that is coming after that is not the one people study at university
fin-tech veterans like us have the key to unlock the power of the financial industry
and you are invited to join us
quarter 1 quarter 2 quarter 3 quarter 4
start development
finish development & start testing
start marketing
to banks
pilot test at several banks & start the cloud service
seed round will support the startup until quarter 3
quarter 1 quarter 2 quarter 3 quarter 4
750 K seed round convertible debt@20%
Series A
many bitcoin startups have regulatory risks - not in our case, we are just bank platform providers
some other well funded bitcoin startups have the same plan although they have not revealed it yet
some of the big software corporations developing systems for banks decide to build a similar system
We believe it is too early for them to consider this option. The idea is to do it first, get as much traction as possible, secure the IP and get ready for an acquisition.
This option looks quite unlikely but should not be discarded as by definition a startup can change its current plan for another one at any time. There is a known startup (Epiphyte) targeting the same market with a similar approach. They are some months ahead but we are moving pretty fast.
no revenues expected until quarter 4 when marketing starts
first contracts with banks expected by quarter 4
All of the licenses many bitcoin startups struggle to get banks already have them. They also have AML-KYC systems in place. They don't need to get new customers, just offer their current huge customer base yet another product. For our cloud service, although we don't hold customers funds neither in fiat nor in crypto we will require further legal advise.
it is too early to develop a platform like this
There is already one bank looking to be converted into a crypto bank: Fidor Bank in Germany. We are already shortlisted to participate in that project.
banks can develop the same technology by themselves
Some of them certainly can, and will do it. We are bringing a batch of innovation that it will be difficult to match by some entity working in a single project.
crypto banking platform
Deployed on-cloud enables new financial institutions of the future to run virtual crypto banks.
Deployed on-premise converts a traditional financial institution into a crypto bank solving all of their current problems at the same time.
new products & services
public wires
Banks will be able to offer this service to any of their customers and without them signing for any new product. Customers will receive wire transfers directly into their fiat accounts coming from any public value transport network such as
, etc.

The sending party will access a web page / service where they will provide some of the information usually found on a wire transfer like beneficiary name and bank account.

The service will be available 24/7 and funds will be cleared in an hour coming from anywhere in the world with practically no fees to be paid either by the sending party or the receiver.
Deployed on-cloud:

Problem #1 solution enabled
: Enables the financial institutions of the future to run a crypto virtual bank with credit and saving products at a cost low enough that would turn profitable the business of banking individuals who live on less than $5/day. In this way we enable the solution to problem #1.

Deployed on-premise:

Problem #2-c solved
: Complements the IT infrastructure traditional banks already have allowing them to reuse most of it seamlessly. Banks are able to create new products like bitcoin accounts for their costumes in whatever core banking system they currently have. Customers are able to freely transfer FROM and TO any of these crypto products and fiat accounts as well, using any of the channels currently available like internet banking, mobile banking, phone banking and ATMs. They can also withdraw funds from their crypto accounts (turned into fiat) at any branch of the bank or ATM network oblem #2-c)

Problem #2-a solved
: The architecture that will absorb the evolution of the underlying technologies in order to help them get quickly on top of it with new products and services for their customers and adapt easily to any future change. Our technology assumes there will be multiple public networks for transporting value and it is designed to adapt quickly to whatever is needed to use.

Problem #2-b soved:
Traditional banks don't need to connect to third party service providers to run a crypto bank. No risk of startups not complying with regulations or melting down overnight.
Bitcoin startups like exchanges, wallets, secure vaults and payment processors will compete with banks once our technology is deployed.
current bitcoin infrastructure startups
who are we?

what do we do?

how do we do it?

why do we do this?

banks are able to create new products like

banks reuse 100% of their IT infrastructure
* with minimum modifications on the bank's current systems
** AML-KYC rules are automatically applied

* http://www.coindesk.com/epiphyte-wins-sibos-startup-challenge-crypto-solution-banks/
** http://www.swift.com/about_swift/shownews?param_dcr=news.data%2Fen%2Fswift_com%2F2014%2FPR_sibos_innotribe_winners.xml
*** http://bankinnovation.net/2014/10/epiphyte-matchmove-win-fintech-st

not doing the same thing but on the radar

"Epiphyte technology allows banks to facilitate consumer-to-merchant payments using cryptocurrencies. Bank customers can perform the transactions in familiar fiat currencies like dollars and euros, and the banks themselves do not have to hold cryptocurrencies." *

"Epiphyte won the title of "Top Startup" with its first product cBridge, providing banks with the technology for real-time international transactions at reduced costs. As "Top Startup" of the Challenge, Epiphyte has also won the 50,000 USD cash prize." **

"Epiphyte took the laurels for startups (and $50,000 prize money) with its bitcoin-based international transfer technology designed for banks. Epiphyte’s solution avoids traditional money movement avenues and instead converts currency to bitcoins, moves the coins, then cashes them out on the other end in the local tender. The bitcoins are moved for a fraction of the cost of traditional money transfers using exchanges like Coinbase and Bitpay, which take on the currency risk. The value proposition of the company is to bring international remittances back to the banks from the startups nibbling away at the market and provide lower-cost services. Epiphyte should come to market at the end of the first quarter of 2015, according to CEO Edan Yago." ***
* we wont hold private keys on our cloud service, the customer will hold them and sing transactions with a module called
Digital Vault
deployed on premise
delivery model

on-cloud: with the exception of the
smart wallet
and the
digital vault
our solution is fully hosted and administrated by ourselves
on-premise: we deploy a software appliance, fully pre-installed and configured to run on any hypervisor at the customer's place

revenue model

transaction fees: we share a fee paid by the end user with the bank operator
subscription fees – on-cloud: customers pay a monthly fee for a hosted service according to the amount of end users they have
subscription fees – on-premise: monthly fee by amount of end users plus monthly / annual fee for support and maintenance
software licenses: customers pay for a license to use the software according to the amount of end users and core processors plus monthly / annual fee for support and maintenance

on each of the previous models there are different subscription levels (essential, corporate, enterprise) according to the desired functionality

sales model

on-line: only on-line channels on self-service mode
resellers and system integrators: sell through resellers networks that currently serve the same market (i.e. Software One, SoftLne, etc.) a network of system integrators will be used to deploy and personalize complex projects
As a tactical movement, first we will start our cloud service as a way to test our technology and build our brand. *

Our customer acquisition strategy will include partnering the ONGs that promotes financial inclusion on the third world in order to sponsor companies willing to startup virtual crypto banks on our ecosystem.
We will send our product through the traditional distribution networks that sell platforms to banks.

We will use a network of system integrators in order to be able to scale our operations independently of the demand for custom tailored solutions.

We are currently offering more than what any bank is expecting to receive and we will keep that policy in the future in order to absorb requirements of functionality on the platform with functionality already designed and on the pipeline.
Pedro Perrotta
ex-Microsoft (12 years)
ex-Santander (5 years)
extensive experience on
software sale, marketing, channels & services

1. public wires

2. smart wallet

3. crypto-products

4. smart wallet plug-ins

5. multi-crypto banks

6. clones and children
technology adoption route
Our platform allows banks and financial institutions to give an array of services to their customers all at once. Nevertheless, we believe banks might activate the functionality available on a certain order. Users will adapt to the new technology step by step.

They will allow their customers to receive wire transfers sent over any crypto network without the customer acquiring any crypto product at all.

They will give customers a smart wallet to pay at any merchant accepting bitcoin debiting their fiat accounts.

They will offer their customers crypto products like bitcoin accounts and the possibility to store them safely at the bank.

End users will learn that certain localized plug-ins turns their wallet even more intelligent and help them save more money with each purchase.

End users will turn from their bank's mobile banking APP to our own smart wallet APP in order to have the wallet intelligence be applied to all of their products at different crypto banks at the same time.

En users will produce clones or children from their wallets and give them to their family members. Later to smart devices or software that requires a money stream.
UPDATE: Roger Ver interested in co-invest
Roger Ver
private network
public network
phone banking
internet banking
mobile banking
regular bank + crypto banking platform = crypto bank
1397 - 2014
2015 -
multi crypto plug-in ecosystem
crypto banking platform + cloud = virtual crypto banks
smart wallet
companies + software packages + eCommerce sites + POS + IoT devices + banked adults + APPs + children + unbanked adults + informal business = our total reach
other regular banks
Our smart wallet is open-source, multi-crypto, multi-sig, HD, smart, reproductive and cloneable. Each time a user needs to pay, it runs an algorithm to calculate the most convenient way to source the funds, even if that means using different sources at the same time.

This algorithms might be written by third parties and are implemented as plug-ins. In that way they can be easily upgraded, localized and customized.

Their logic takes into account a set of rules that govern each of the products users have at the bank and can go as deep as considering taxing consequences for certain sources of funds or the price at which each batch of crypto was bought in order not to spend them at loss.

On crypto banks smart wallets can also source funds from fiat accounts, including credit lines or any other kind of product that can be debited and can be sold for crypto at the bank. (i.e. miles, points, etc.)

Regular banks can upgrade their mobile banking APP incorporating our smart wallet technology inside it or brand our white label wallet APP.

Later in the future, end users will choose from the above APPs provided by their bank, or our own APP that is multi crypto bank. That means that while running at our own APP, the plug-ins can source the funds from multiple products at multiple crypto banks at the same time.
Smart wallets carries only pocket money to lower the risk upon the event of a mobile device being lost or stolen.

End users can configure money streams that flows from their bank to their wallets, keeping the wallets always charged with pocket money.

End users can clone their wallet to have access to the same pocket money and money stream from more than one device at the same time. They can also produce children of their wallet to be installed on devices as diverse as:

their children mobile phones
a smart TV (that automatically pay for content on demand)
a smart APP or software package (that needs a money stream to accomplish it's tasks, for instance pay bills, etc.)
a videogame console (that pays itself for new titles)
future IoT devices (that don't produce revenue and requires a money stream)

Children wallets inherits part of their parents pocket money and money stream. Children can have more children themselves.
pocket money & money streams
crypto banking platform
current status: bootstrapping with 2 full time developers
2. 5 billions people most of them living on less than $5/day,* are not using formal financial services. This can inhibit their ability to build wealth, increase their income and manage uncertainty. Traditional banking institutions failed so far to reach these people because their current costs prevent them to provide financial services to these people at profit.
localized smart plug-ins ecosystem
localized user interfaces ecosystem
open architecture
smart wallet
software packages & APPs ecosystem
smart devices ecosystem
embeddable capabilities
Our competitive advantage is our strong domain expertise, our proprietary technology, being the first mover and the ones starting both new macro trends. Also our innovative capacity backed by a team of fin-tech veterans. We have already introduced several new concepts never seen before.
competitive advantage
We expect a macro trend of new highly automated financial institutions that can operate almost without any physical infrastructure at all starting very soon as this scenario has been enabled by the invention of crypto currencies 5 years ago.

In the same way that the third world leapfrogged the first world and avoided the enormous social cost and time associated with building out a wired telephone network by simply adopting cell phone technology, we are going to provide a way for the third world to avoid building brick and mortar financial institutions by using our crypto banking platform to run virtual crypto banks that in turn might be connected to traditional financial institutions expanding their current reach through this new channel.
macro trend #1 : virtual crypto banks
current problems
* http://mckinseyonsociety.com/downloads/reports/Economic-Development/Half_the_world_is_unbanked.pdf
macro trend #2 : crypto banks
We see a second macro trend starting where all traditional financial institutions will be converted into a crypto bank in the same way they where converted into online banks after the invention of the worldwide web.
smart wallet
Complements the crypto banking platform in both scenarios.
sustained competitive advantage
Our sustained competitive advantage is the fact that we will own an ecosystem of virtual crypto banks startups mostly on the third world which traditional banking institutions can use as channels for expanding their reach only if they themselves are converted into a crypto bank by our crypto banking platform. The opposite way is also true, the more we grow our traditional crypto bank ecosystem, the more virtual crypto banks startups will choose our hosted service as that would increase their chances of doing business or being acquired by any of the traditional banks converted by our platform.

In this way we address both market opportunities at the same time in a way that each one leverages the other.
crypto banks ecosystem virtual crypto banks ecosystem
current mobile banking APP white label APP bitDubai's multi bank APP
open source + bitcoin wallet + altcoin wallets + multi-sig wallet + HD wallet + multi crypto + smart + cloneable + reproductible + money streams = smart wallet
2010 2010 2011 2014 2014 2015
open source + bitcoin wallet + altcoin wallets + multi-sig wallet + HD wallet + multi crypto + smart + cloneable + reproductible + money streams = smart wallet
2010 2010 2011 2014 2014 2015
smart wallet
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