1. 2012 Launch of the Cash-My-Check Full Self-Serve Check Cashing Kiosk
INVESTOR PROPOSAL
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3. CMC Financial Services is an industry leader in Check Cashing/Financial Services. CMC Financial
Service’s check cashing service is a convenient and an easy source of transaction for all individuals, who
are unable to use traditional banking for any reason. CMC Financial Services have targeted the Unbanked
and Under-banked population. Our competitive advantage stems from a variety of financial products and
services such as: ATM, Check Cashing, Wire Transfer, Bill Pay and Money Order all in a kiosk, “NO
EMPLOYEES”, “NO OVERHEAD” and “LOWER INSURANCE PREMIUMS”
CMC Card Features:
Customers takes a picture of their check and pay their bills with their CMC Card it will post to the
customer’s account in “REAL” time not 2 days later. The remote check deposit feature has a Trademark
pending the phrase: “Point…Click…Deposit” and the bill payment phrase “Point…Click…Pay”. The
difference between our products and services and other companies providing similar services are: their
products and services are catered to the “Banked” and Cash-My-Check and CMC Card targets the Un-
Banked and Under-Banked population.
CMC Kiosk has patent pending technology which entails: Webcam, Biometric Finger Scanner, 3D Facial
Recognition and Signature Verification. The 3D Facial Recognition first gets an image of the person's
face (it has a heat sensory to verify that it is a human being not a piece of paper), the face has to cross
match the face that is in front of the kiosk to the face on the driver's license, signature has to match
signature on back of the check and driver's license and lastly the fingerprint must not appear in our
database and it must match the biometric on their license.
Our CMC Card will be the first prepaid debit card that has mobile remote check deposit and bill pay.
CMC Financial Services is seeking $500,000 in return for 30% equity in the company. The funds
will be used for ordering 6 kiosks, marketing, software, maintenance, implementation
and operation costs.
Investor Letter
4. Introduction
Norcross, GA (October 22, 2010) – Cash-My-Check, Inc. “aka”
(“CMC Financial”), the nationwide leader in full service check
cashing, check-to-card, and check guarantee solutions. CMC
Financial Services have launched the first full self-service check
cashing kiosk in the market capable of cashing any type of check
utilizing our new cutting edge technology-3-D Facial Recognition.
The total time from start to finish when a customer enters our kiosk is
72 seconds for the first time registering and 27 seconds then after.
CMC Financial Services is Bata testing and launching a soft launch of
our kiosk in the first quarter of 2012.
5. About the Kiosk
Cash-My-Check (CMC) is an
automated check cashing
machine with the capabilities of
check cashing, ATM, bill
payment and electronic money
order.
Cash-My-Check (CMC) is a
self service check cashing
machine that provides real-time
check verification for payroll,
corporate and government
checks.
This Kiosk 100% self service!
“NO EMPLOYEE’S needed.
7. About CMC Financial
CMC Financial Services has created a
kiosk that can do it all: ATM, Check
Cashing, bill pay, send and receive
money, dispense money orders as well
as purchase and load a Prepaid Debit
MasterCard – and do it all in few
seconds with a simple easy customer
experience. CMC Financial Services
has partnered with several apartment
communities, hotels, car dealership and
mortgage companies to promote client
retention and convenience to its
customers.
Consumers will be able to pay any bill (Rent,
Mortgage, Car Note, Insurance and much
more) tight from the kiosk. We have been able
to leverage our extensive experience in kiosk
based money transfer and bill pay, and Cash-
My-Check’s check cashing technology to
finally provide the solution everyone has been
asking for. Now as a retailer or financial
service provider you no longer need a fully
staffed money center to meet all the financial
needs of the 100+ Million and growing under-
banked market. You can now leverage
technology to economically offer the best
services available, open all of the hours your
location is open, giving your customers a faster,
easier and simpler experience.”
8. About Cash-My-Check
CASH-MY-CHECK® is a Technology
Enabled Business Process Outsourcer
(BPO) that provides its clients with
solutions for truly serving the nation’s
under-banked population now
estimated to be almost 100 million
people. The gating factor for these
consumers is their need to change all
types of checks into cash or value.
Cash-My-Check’s flagship product enables any
business to convert ALL types of checks to
cash or to guarantee value loads onto Prepaid
Cards or other prepaid products. The solution
combines multiple national databases, rules
engines, and proprietary technology with
redundant 24/7 risk management centers.
Cash-My-Check’s risk centers are staffed with
experts at check cashing and check fraud and
can intervene in minutes to enable clients to
successfully serve all consumers with all forms
of identification cashing or loading all types of
checks.
9. Target Market
The “Un-Banked”
Statistics
An estimated 28 million people in the
U.S. don’t have bank accounts — often
because of mistrust, cultural and
language barriers or a belief that by the
time the bills are paid nothing will be
left for an account. About 44 million
are considered “under-banked,” having
an account but tending to rely on
nonbank service providers, according
to the FDIC.
Unbanked people, many of whom are African
Americans, Hispanics or immigrants, often turn
to high-cost check cashers or payday lenders
that can put them into a cycle of indebtedness,
regulators and consumer advocates say.
The survey showed that “more can be done to
reach out to this significant market,” FDIC
Vice Chairman Martin Gruenberg said in a
statement. “Government and industry need to
work together to increase these individuals’
access to the mainstream banking system.”
10. Cutting Edge Technology
Cash-My-Check, Inc. (“CASH-MY-CHECK”),
the nationwide leader in full service check
cashing, check-to-card and check guarantee
solutions.
CMC Financial Services will launched a full
self-service check cashing kiosk in the market
capable of cashing any type of check utilizing
our new cutting edge technology-3-D Facial
Recognition
11. Facts on the Check Cashing
Industry
Over 30 million people cash checks
annually. Customers are typically blue- and
white collar workers involved in retail and
service industries such as restaurants,
hotels, auto repair, landscaping, daycare
and line manufacturing.
Twenty-nine percent of the 12 million
households that rely on fringe lending are
Hispanic and one-third are African American.
The numbers certainly show the so called "un-
banked" are rapidly becoming forces to be
reckoned with - they generate $78 billion in
gross revenue and $5.5 billion in fees each
year.
Check cashers, payday lender, pawnshops, rent-
to-own stores and related institutions now
engage in at least 280 million transactions
annually.
12. Kiosk Placement
CMC Financial Services is now
placing orders for our 2012 soft launch
program. Many companies are seeing
significant demand both among their
existing client base and in new
markets.
CMC Financial Services mission is to provide
the un-banked, under-banked and underserved
population with the same financial services as a
traditional bank. For that to happen, the core
service for this consumer, check cashing, had to
be fully available at the self-service kiosk. We
think what we have built with CMC Financial
Services breaks all previous barriers and will
set the standard for future devices. This will
enable our clients to expand their reach and
availability in a more cost effective way.”
13. Kiosk Simplicity
CMC Financial Services wanted to
give its customers value-added services
without compromising the safety of the
consumer.
Cash-My-Check and CMC Financial Services
have developed a kiosk-based solution which
has succeeded in maintaining CMC Financial
Services trademark user simplicity while
adding Cash-My-Check’s trademark approval
rates on all checks and IDs by still
implementing a sense of safety with our unique
and proprietary hardware and software.
17. Kiosk Specifications
System Control
• Intel® Pentium®-IV processor
• Microsoft® Windows® XP platform
• Optional 12.1" TFT LCD
Communication
• TCP/IP (SSL configurable) or Dial-up
Application Software
• NDC+
• DDC912
Customer Display
• 15" TFT LCD
• Optional sunlight viewable
• Optional touch screen
Input Type
• 4 x 2 function keys
• PCI EPP (Encrypting PIN pad)
• ADA compliant
Card Handling
• Dip-type card reader
• Optional IC card reader, EMV Level 1, 2
Printers
• 3.1" graphical thermal receipt printer
• Electronic journal
Security
• UL291 business hour safe
• Standard electronic safe lock
• Security camera
• Optional KABA Mas Cencon safe lock
Miscellaneous
• Guide lights
• Optional high-brightness topper
Power Supply
• AC 110–230V, 50–60 Hz
• Back-up battery
(last transaction and shut-down)
Operating Environment
• Temperature: 32ºF–104ºF
• Humidity: 25%–85%
Dimension and Weight
• Height: 51.2" (1,060 mm)
• Width: 16.1" (410 mm)
• Depth: 22.8" (580 mm)
• Weight: 265 lbs (120 kg)
Cash Dispensing
• 2,000-note cassette
• Up to three cassettes (6,000 notes)
18. Executive
Summary
CMC Financial Services, Inc. is incorporated to cater to the low-income,
un-privileged, under-banked, under-served and the un-banked
population, nationwide.
Studies have revealed that by 2010, the U.S.A kiosk sector is expected to
reach a worth of around $ 1200 billion. This sector was worth $548
billion in the year 2007. This reveals the growth potential of this sector,
which would grow over 100% in just a span of five years. Similar are the
findings of another study, which has revealed the self-service kiosk
transactions to exceed $607 billion in the year 2008 in the U.S.A and
Canada. These transactions exceeded $1.7 trillion by the year 2010.
50 million individuals across the U.S.A utilize the alternative financial
services and more than 180 million checks are cashed via the cash-
checking locations.
Our service shall stand out from the rest, because we are introducing
the service feature of facial recognition as a form of person verification.
19. Marketing
Opportunities
There are many opportunities in the market for Cash-My-Check in
the market, such as:
After the recession, many consumers have gone bankrupt and have
credit issues with his banks. These consumers are now heading for
alternative financial services instead of traditional banking process to
cash his checks or other financial instruments. This creates a great
opportunity for check cashing services like us to benefit from.
Other opportunities are that consumers are now more and more
shifting towards ease, convenience and prefer services, which offer
ease and are swift. So, our service will allow them access to cash
their checks, other Instruments and pay their bills any time, with
ease.
20. Branding
We will project Cash-My-Check as a brand, which will offer innovative
idea of check cashing through self-service kiosks through out the United
States. W e will position ourselves as the topnotch service provider
offering multiple services including: check cashing, money orders, bill
payment, etc.
21. Marketing Objectives
Our primary objectives are: The opportunity to focus on operations and
service, while still achieving sales objectives and service metrics:
Installation of thirty- five kiosks by the end of 2012
Reach 40 new customers a month for the first 12 months Develop
a word-of-mouth reputation
Achieve first year revenues of $2,364,839 in terms of checks cashed.
Financial Objectives: Secure financing to implement our plans and gain
enough profits to satisfy our investors and employees. CMC Financial
Services will generate maximum revenue by offering multiple
products/services to diversified segments.
22. Exit Strategy
The investors that provide the capital that is the subject of this
document will have several exit opportunities available to them.
Management believes that the most likely exit will come from the sale
of the Company or licensing of its intellectual property to one of its
strategic partners or to another enterprise. Other alternatives that
would create a liquidity event for the investors might include a buy
back of the outstanding shares using cash on the Company’s balance
sheet or through the exchange of the stock with long term capital
provided by an institutional lender.
