1. Change within the financial industry:
a. The financial crisis has changed the playing field; banks seen as part of the problem; public
seeking fair solutions.
b. Shift from financed by banks to financed by the capital market
2. Change within society: Raise of sharing economy
3. Change of technology: Technology means business models for financial services
will change; financial institutions need innovations.
Money 1.0 = Past
Decentralised & Disconnected
When money was physical in the form of valuable objects such gold & silver coins, tokens, or the
records of local networks of trust.
Money 2.0 = Present
Centralised & Connected
97%+ of money we use is electronically and facilitated by banks.
Money 3.0 = Future
Decentralised & Connected
Private currencies issued by companies, communities and, perhaps, local authorities.
Diversity of Currencies
1. Trade Exchange B2B - mutual credit Business 2 Business, unit = trade credits/dollars
2. Corporate Barter B2B- central credit Issuing, unit = trade credits/dollars
3. Corporate Trade Exchange B2B - hybrid Corporate/ Trade Exchange, unit = trade credits/dollars
4. Loyalty Exchange B2C - hybrid Trade Exchange business 2 citizen , unit = points
5. Air miles rewards - propriety, coalition operated by airlines unit = air miles
6. Loyalty programs - propriety, coalition consumer rewards, unit = points
7. Time bank - social exchange, unit = hours
8. Time bank - professional exchange, unit = (multiple) hours
9. Local Exchange Trading System C2C - mutual credit citizen 2 citizen, unit = LETS credits
10.Local paper currency - discount shopping, = paper currency/scrip
11.Local fiat currency - paper and digital
12.Social media currency - Facebook, QQ, unit =points
13.Games consoles currency - Wii, Xbox, play station etc, unit =points
14.Gamer currency - e.g. Second Life, unit = points
15.Charity exchange - mailing list exchange for fund raising, unit = points
16.Media exchange - discount shopping = paper currency/scrip/points
17.Incentive exchange - employee or citizen rewards program, unit = points
18.Metal based - gold, silver and copper coins or digital, Liberty Dollar etc.
19.Commodity based – baskets of commodies like Ven or energy-backed currencies
20.Cryptographic - encrypted files created by CPU power e.g Bitcoin, units = depends
21. Reputation – based upon social media reputation e.g. Flattr, Mobbr, units = points
Barter network (Mutual Credit Systems)
A group of businesses create a group credit for their goods & services
Each business in the group is given an amount of credit that is backed by the
commitment of the other businesses.
Either electronic database, or even coupons act as a currency that is backed by
excess capacity of the business community.
Worldwide, more than 400,000 companies are members of one or more of the hundreds
of Trade (“Barter”) Exchanges. Various sources estimate the volume of non-monetary
trade worldwide to be between 15% to 25% of the total.
Examples of existing barter networks
Bartercard was founded in 1991 and has about 75,000 cardholders operates in 13 countries in the
Asian Pacific Rim (including Australia), Middle East, and Europe.
ITEX was founded in 1982, ITEX is a publicly traded company and is one of the largest trade
exchange networks in the United States, and has about 24,000 cardholders in the North American
IMS was founded in 1985, IMS is a publicly traded company and is one of the largest trade
exchange networks in the United States, and has about 23,000 cardholders in 51 North American
BBX was founded in 1993, BBX currently has about 8,000 cardholders in Australia, New Zealand,
India, Costa Rica and China. BBX is the first barter exchange manager to list on the Australian
Stock Exchange (ASX)
WIR was founded in 1934 and has about 80,000 cardholders operates in Switzerland only among
whom is traded approximately CHF 2.5 billion annually (over $2 billion US dollars)
Barter network = Trade Exchange
Credit + Debt = Zero
All of the DEBT plus all the CREDIT
in the system will always equal ZERO
Unlocking unsold capacity
Potential Cash Income
Businesses UNSOLD is Dead Capital
Cash Income + Trade Credit Income
UNSOLD = Dead Capital
Empty Hotel Rooms
Lost Sales/Lost Profits
Vacant Restaurant Seats
Under Performing Assets
Downtime Idle inventory
TRADE CREDIT INCOME =
New Additional Sales
New Extra Income
Improved Cash flow
Improved Cash Profits
Replacing Cash Expenses
Trade Credit income REPLACES cash expenses which in return increases profits
Why Popular? Unsold Capacities
All Businesses Have
Advertising space and slots
Capacity Or Inventory
Tickets empty seats
Rooms seasonal business
Jobs unbilled hours
Production and idle inventory
Down time on printing presses
Stock and end of line goods
Table seats quiet mid-week
Time unfilled appointments
1. Provide the productive sector with a reliable source of credit that is sufficient, interestfree, and community controlled.
2. Improved customer retention
3. Improved turnover, profit and liquidity ratio:
Improved turnover between 5% - 20% (unlocking unsold capacity)
Saves EURO’s by interest free supplier credit
Improved cash position by €5K – € 200K
Reduce dependence on banks and scarce currencies ($, €, ¥, etc.).
Nationwide reward organisations
Redeem option C
Reward Club C
Redeem option B
We Helpen organisation
Nationwide redeem options
• 1% per month
• < 50 credits: no interest
• > 50: 1 credit per month
Future of Banking Services?
Being part of the system
Accounting and credit clearing services
Financial analysis and determination of creditworthiness
Safe storage of various currencies and digital assets
Sales of financial products (cross sell), like insurance
Revenues derived from:
o service fees (transaction fees, evaluation fees, brokerage fees)
o data analysis, advertising and sales of additional services
Summary; it is just the beginning
• There is potential from these innovations in terms of their wider effect
• As a cooperative bank needs fair and sustainable innovations. The
challenge is to find fair business models for the bank using
• Learning by doing: be active in a number of ways where Rabobank
enhances its co-operative approach to monetary innovation, and has
horses in the race and shapes the rules of the game.
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