This document highlights the concepts behind a money transfer alliance (or association), working very much like the Uber model (shared economy). In this case it is not a shared economy but shared licenses, shared banking, shared networks, shared everything.
1. Uberization of Money
Transfers (Remittances)
A collective approach to solving the US money transfer
market problem for startups and fintechs
2.
3. Our mission is simple:
To provide a unified, multi-domain
platform for money-transfer. With
each participant contributing
towards licensing and also
benefiting from pooled earnings.
4. The problem
How can an MSB licensed in one
state only, legally on-board
transactions from other states?
How can an MSB that has
corresponding agreements with let
us say two beneficiary countries
expand into other countries?
How can they get more business?
How can they get access to a
unified platform?
5. The problem
How can they allow other
businesses to benefit from their
license without being subjected to
any regulatory approval?
How can they continue to operate
without exposing themselves to
risk?
Who will put together the alliance
and how will it work?
6. The common denominator for an
alliance solution comes down to
basic operating guidelines and
agreements.
7. The solution
Collaborative
Network
Power
Find MSBs who hold licenses for a
specific territory
Provide a unified platform (that can
be multi-domain)
Provide a basic transaction set and
how its settlement will be done
Assign affiliate agreements for
generating business
8. The solution
Collaborative
Network
Power
Find processing partners for payments
Establish a baseline KYC/AML program
Agree on cross-settlement mechanics
(including pricing)
Seek legal opinion on flow of funds for
transaction set
12. How it works
Step 1
Affiliate Agreement
Sign affiliate agreement
with each:
● Platform (Domain)
● Other MSBs in the
network
Step 2
Define Licensing
For each platform, enter
the state(s) for which you
are licensed for.
Step 3
Define Pricing
Display your pricing for
each client transaction
that may be sent your
way.
13. How it works
Step 4
Define Corridors
Let others in your
network know which
corridors you have an
agreement with for
onward termination.
Step 5
Pass-Thru Pricing
For transactions picked
up by others in the
network and passed onto
you, provide pricing for
such transactions.
Step 6
Domain Goes Live
Platform provider goes
live. Your pricing will
determine if transaction
come your way or not (as
there can be multiple
providers competing for
the same business)
14. Flow of funds is strictly between
licensed entities. All of whom have
a signed correspondent
agreement with each other.
16. Revenue model
Affiliate
Transaction based
● On every transfer.
License Holder
Transaction based
● On every direct and
intermediary
transfer.
SaaS Platform
Recurring
● Plus small fixed fee
per transaction.
17. Fact:
More than 80% of US MSBs who
are MTOs are struggling on all
fronts: new business, banking,
online presence, licensing,
expansion, technology, access
to new corridors, competition.
Based on a closed survey
18. Milestones
Partnerships Feb/Mar 2016
Seeking interests from Licensed
MSBs, Payment Providers, 3PPP,
Correspondent Banks
Trial Setups Mar/Apr 2016
Work with select partners for
additional proof of concept.
May 2016
Launch limited services with
select partners.
June 2016
Full-fledged commercial launch
with multiple partners