BABB: Redesigning Collaborative Finance & Banking on Equality

Financial freedom is independence from government control and destructive interference in the financial sector.

Some minority groups continue to face discrimination in finance. There have been claims of discrimination against women in mortgage financing and similar issues have arise across all areas of financial services. Most notably are Race Discrimination and Gender Discrimination.

It is morally unacceptable in that it infringes people’s rights, to refuse a financial service, or to not give the same standard of financial service extended to others, on the grounds of race, color, nationality or ethnic origin.

Recently, banks in Florida and Washington closed a few bank accounts in such a short notice and without providing any good reason, which actually required to do so by law, to the account holders. The fact is that the account holders are all of Middle Eastern descent, leading them to suspect discrimination.

Another report came from a UK law firm handling more than 60 complaints by Iranian nationals who have had their UK bank accounts closed allegedly because of their nationality which actually has no direct relation to the sanctions of Iran nuclear deal. And we are talking about Iranian nationals living legally in the UK.

Currently it is required for both receiver and a sender to have bank accounts, which become a problem when people have no official identity documentation or unable to provide formal living addresses (e.g refugees, students from another countries, immigrants) to meet the cumbersome requirements of banks.

The efforts to make financial services available, accessible and affordable to all segments of the population is necessary to ensure a sustainable economic growth. Financial inclusion is critically needed to offer a simple and affordable financial services to the poor and underserved populations.

Bank of The People

The history of banking began with farmers & traders in 2000BC. Back on those days, The Roman Empire formalized the first banking structure by offering loans to farmers and traders, which then developed into a one stop service accepting deposits and the exchange of money. The basic purpose is for keeping, lending, and exchanging money or bullion in the marketplace.

Another form of bank was the goldsmith. At that moment, most goldsmiths owned well protected vaults because of the precious metal they always worked with. If the goldsmith seemed to be an honest and truthful person, people will put their treasures in his care, and the goldsmith will then charged fees for taking care of the gold and diamond.

Banks exist because people trust them, not the other way around.

Back then, the bank services were not exclusive. Anyone can deposit and loan money, or just put their gold & silver in a vault. Moneylenders and bankers managed to limit the state’s involvement in the banking sector and the economy as a whole.

But today’s modern banking system is different. Since the early 90’s, a few well-known banks, like Goldman & Sachs and J.P.Morgan, parlayed their international connections into both political and financial power. These “large” banks were connected directly to London, which was the financial center of the world at that time. But it was difficult for the average people to get loans from them. These banks rarely extended credit to the “common” people. Racism was also widespread and these banks left consumer loans to the smaller banks that were still failing at an alarming rate.

BABB app platform ensures that anyone in any country can open a bank account without need to worry about the limitations imposed by the banks. With Bank-Account-Based-Blockchain (BABB) anyone around the world will be able to open a UK bank account. People just need to download the BABB app, take a selfie and read a passphrase for voice print. With this account, anyone can access an almost limitless choice of banking services at a very low cost.

The Role of Smartphones

As mobile phones become more capable and less expensive, the total number of mobile phone users has outnumbered bank account holders. For the unbanked people, who lack access to traditional bank accounts but have high rates of mobile phone ownership, mobile is playing a critical role in financial inclusion by providing access to set of financial services.

A lot of commercial banks have provided this kind of service but usually to open a mobile account for traditional banks, a new customer visits an outlet and registers by providing a mobile phone number, proof of identification and information such as name and date of birth. A text message is then sent to the customer’s mobile phone providing instructions for account activation.

BABB simplifying this hassle process by creating an app that allows people to open a UK bank account from anywhere in the world by just taking a selfie and saying a passphrase. This brilliant app can also be used to:

  • Send & Receive Money; People can send & receive money to any other BABB user anywhere in the world instantly and for almost no charge.
  • Exchange Money; People can exchange fiat currencies or cryptocurrencies directly without any middlemen. It’s cheaper, faster and easier than doing it any other way. The BABB app will find all the people nearby that are able to accept the exchange.
  • By using Biometrics and Digital identity technologies, BABB removes the barriers to access and create a frictionless onboarding process. There is no need for documentation or face-to-face meetings with a bank managers. The whole process will be done within the app.

Once you’ve entered the BABB ecosystem, you become your own bank. Anyone with a smartphone and an internet connection can participate in BABB’s global marketplace.

Decentralized Debit Card

The are so much issues with current Credit Card and Debit Card system, from fraudulent activities, security problem into higher fees. And sometimes we are becoming too dependent on centralized parties like Visa or Mastercard.

BABB provides the first decentralized payment card, called Black Card, means that the card will be based solely on the blockchain and independent from big providers like Visa or Mastercard. This will result in lower fees, secure and transparent services.

Black Card will be directly linked to the BABB account and can be used to spend any fiat money or cryptocurrency as well as online and offline in any country. It is secured by QR code or NFC tag which can be disconnected instantly from the BABB account if the card is missing or stolen. No need to call bank’s customer service in the middle of the night.

Why United Kingdom?

BABB App Ltd, a UK registered company, is an authorised payment institution by the Financial Conduct Authority (FRN 577101) licensed and regulated by HM Revenue and Customs as a Money Services Business (MSB).

United Kingdom is one of the powerful economies in the world. Despite Brexit, the economy grew at a rate of around 2% of GDP in 2016, boosted by private consumption and the dynamism of the services sector.

As of March 2017, London has been ranked as the world’s largest financial centre, which has advanced settlement and payments systems, supporting large domestic economies, with deep and liquid markets where both the sources and uses of funds are diverse, and where legal and regulatory frameworks are adequate to safeguard the integrity of principal-agent relationships and supervisory functions.

London is also the largest center for most financial products like derivatives markets, foreign exchange markets, money markets, international insurance and international bank lending.

Combining an established and fully proven financial system of United Kingdom with Blockchain technology is a powerful solution. To open a UK bank account, the new member simply just need a smartphone. Sometimes simple is the most sophisticated way.

An individual is more than the number of digits in his account balance, and deserves the same service and respect. BABB is on the right path to shape the bank of the future: People.

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Author: Albert D Stone

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