The underserved economy!!!
It is a hard fact to know, but even after almost 20 years in the 21st century, 40% of the world population still remains unbanked or underbanked. Which means that over 3 Billion people worldwide use cash for their daily purposes and are deprived of any banking services like – education loans, home loans and more. This simply means that the existing banking system needs a radical change to serve interests of the underbanked and the microeconomy as a whole. That is what BABB – 'Bank Account Based Blockchain' is here for.
The Problems
We know the facts and numbers about the underbanked global population, but what is the reason of such high population of the underbanked people. After so much digitalization what is stopping these people from availing banking services and digital payments?
It is an undeniable fact that though the traditional banking system may have become technologically advanced and more secure from physical threats over the years yet the banking system is still the same at its core.
Many banks today, still follow fractional reserve banking Which means that these banks only keep 10% of their customer deposits in cash and lend out the remaining 90% capital to earn money from interest. This means in case of a financial emergency when more than 10% of deposits have to be withdrawn banks go out of proportion.
Being centralized, the banks are always open to cyber and physical threats. There have been many advancements to avoid such disasters but no one can deny the possibility of such threats succeeding in the future.
Banks have a lot of user personal data and have been known to sell some personal (not financial) information to third parties. All the fishing attacks (where you are communicated by a third party to give away your personal bank information) happen because the attackers know which person has an account in which bank.
Other minor problems include:
o Geographical factors: Difficult physical access to banks or online banking.
o Over-reliance on cash for daily needs.
o Customers may not have enough saving to benefit from a bank account.
The Big Idea
There have been many start-ups aiming to serve the underbanked community by using existing technologies but have hardly made a significant impact on the scenario. BABB aims to completely remodel the existing banking system by leveraging blockchain, biometrics and machine learning to offer a completely secure decentralized banking service for people across the globe.
Some special features of BABB
Easy access to banking services : Regardless of a person's income, financial status, credit history or location, BABB will offer a bank account to anyone in the world (with UK regulations). Thus, allowing the underbanked to avail financial and social benefits of the banking system.
o All that an individual would need is a passport identification or a National Identity Card.
o The users would also be allowed banking services without any identification by providing a valid biometric authentication and peer-verification from someone fully verified.
o The platform will come out as an extensive mobile application which means that you can avail all banking services offered by the platform from your mobile phone over the internet.
Advantages of blockchain: Being based on the blockchain, the platform can easily host, transfer fiat currencies anywhere in the world cheaply and securely. Decentralization and consensus ensure the platform a great safety from cyber threats. All the traditional banking functions like fund transfer or loans are covered by the smart contract. Thus, adding to the security of the platform.
BABB Black cards: The BABB platform offers a black card that is linked to your BABB wallet and can be used to make instant transfers over the platform. The retailers can accept payments via NFC in the cards or by simply scanning a QR code on the card. The card bears no personal information of the owner thus adding to the security offered by the platform.
The platform aims to create a frictionless financial network which revolutionizes the microeconomy, by making the banking system more accessible, advanced and secure.
The BABB bank accounts will be issued an IBAN for international and European transfers which will connect the BABB platform to the existing banking system and thus allow users to deposit and withdraw funds from BABB platform.
BABB Token – BAX
Token Symbol: BAX
Accepted payments in: Ethereum Only
The token sale for BAX starts on 6th
February 2018. BAX tokens can be used by users to pay the bank fees during the service period or simply liquefied on the platform.
Conclusion
BABB is a great initiative to help the underserved people avail and benefit from banking services. The platform offers unforeseen features and security and aims to provide its services across the globe. On such a large scale, there are rarely any market competitions aiming to create a similar system this big. Being the world's first decentralized banking system for the microeconomy, the BABB platform could hit the financial world at its core and thus, ushering a new era of financial industry.
Website : https://getbabb.com/
Whitepaper : https://getbabb.com/whitepaper
Contact: dannywhelan ([email protected])
Profile: https://bitcointalk.org/index.php?action=profile;u=1606458
Thanks for the writeup
Really great
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@damdap Thank you
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