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Emerging Technologies for Business: Blockchain
Intelligent Cloud Applications: Industries: Financial Services and Insurance
Code: CON7242
Session Type: Conference Session
Oracle Blockchain Cloud Service
in the Financial Services Industry
Wednesday, Oct 04, 12:00 p.m. – 12:45 p.m. | Park Central (Floor 3) - City
Oracle OpenWorld 2017
Oracle Blockchain Cloud Service
Merchant Cash Advance Platform
A use case by Oracle, Biz2Credit & AuraBlocks
Patrick Cunningham, Biz2Credit | Kiran Murty CTO, AuraBlocks
Enterprise
Our Focus
We have one
agenda. And that’s
Enabling Blockchain
for Enterprises.
Blockchain
Enterprise
Consulting
Financial
Services
Client Overview
Biz2Credit operates a
Merchant Cash
Advance (MCA)
Marketplace.
Merchant
Ideal / Merchant Cash Advance(MCA) Flow / Today
Merchant
Merchant
borrows credit
advance

Merchant
Processor
Lender
Lender
advances
credit

Bank
Statements
Credit
Card History
Pass Thru
Fees
Information Exchanged
from
Merchant to Lender
Merchant
Merchant Commits Fraud Scenario / MCA Flow / Today
Merchant
Merchant
borrows credit
advance

Merchant
Processor
Lender
Lender
advances
credit

Bank
Statements
Credit
Card History
Pass Thru
Fees
Information Exchanged
from
Merchant to Lender
Uses
Alternate
Billing
Channels
Lender only
gets a
portion of
the Interest
Receivable
Sends Only
a Portion of
the Receipts
Top Challenges for
Credit
Providers/Lenders
Lack of Transparency to Actual Financials
Lender has no insight into the underlying true
financials of the borrower
High Operational Costs
Lender has high operational cost for collections
and has to send mystery shoppers to verify
operations
Lower Lending Potential
Lender deliberately lowers the amount of credit
offered to limit exposure
Fraud Potential
Borrower has ways to dodge repaying the credit fees
by showing lower revenue through monitored
channels
Non Competitive Rates
To protect against the risk, the lender increases the
borrowing rate and becomes non-competitive in the market.
This also hurts genuine borrowers
$
How do we solve these challenges ?
Reconciliations &
Triggers
Numbers from GL and
credit card receivables
are reconciled and
interest rates are
adjusted automatically
Trusted
Network
A trusted tamper proof
network is created
among parties where
everyone agrees to the
numbers
Access to
Financials
Real time access to key
company financial KPI’s
is obtained
Audited
Statements
Auditor validates
financial statements
Solving with Blockchain | A platform is the solution | Tomorrow
Merchant
Merchant
borrows credit
advance

Lender
advances
credit


Audits Financials
Lender
GL KPIS
Bank
Statements
CC Receipts
Oracle Blockchain Cloud Services
TRANSPARENCY
All parties see the
same data and
there is maximum
trust on the
information being
shared.
TRUST
Multiple data
points allows for
easier
reconciliations.
Auditor
Lending Marketplace
Architecture
*Disclaimer: All logos are property of their respective owners.
Oracle IaaS
Oracle BCS
Docker Images
GO Lang
Solo/Kafka
Consensus
Oracle BCS
Orchestration
T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4
Admin Console
REST Proxy
Membership Service
Ordering Service
Smart
Contract/Chaincode
Ledger (World State)
Nodes/Peers
Applications
Oracle BCS
Orchestration
Oracle GL /
NetSuite /
Other GL
Sovereign
Identity
Ecosystem
Datasets
Projected Benefits for a $1 Billion Lending Book
1 2 3 4
Operational
Efficiency
Higher
Lending
Better
Rates
Lower
Charge
Offs
OPEX Reduction 21 %
Merchant Rate 350bps

Charge Off Rate 51bps

Growth in Book 25%
Path to Tomorrow ?
Oracle Blockchain powered MCA marketplace is
the answer. Let’s see the marketplace in action.
A DEMO.
DEMO
SUMMARY
Mobile first digital interfaces for marketplace
participants.
Credit Providers, Merchants, Service Providers, GL
KPI’s all converge and operate on one business
Blockchain network.
Oracle BCS Gateway enables seamless API
integration into public cloud and internal micro-
services.
Secure, delegated access to smart contract
functions and business workflows via channels
and certificate based membership enrollment.
The Future
The Future
Blockchain is truly a transformative
technology that is positioned to change
the fundamental constructs of well
established trade and transaction
workflows in the marketplace.
Oracle , AuraBlocks along with players
like Biz2Credit are invested in making this
a reality.
A Oracle , Biz2Credit & AuraBlocks
Presentation.
Blockchain
Oracle
AuraBlocks
Biz2Credit
Thank You
Questions and Feedback
Stop by Mascone West
SOA DLT/Blockchain Booth
Copy of Presentation
Run the mobile app
See and tweak MCA smart contract code
Kiran Murty , CTO
kiran.murty@aurablocks.com
Richard Brownstein, CEO
richard.brownstein@aurablocks.com

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Blockchain/DLT | Bringing efficiencies to lending in Financial Markets

  • 1. Emerging Technologies for Business: Blockchain Intelligent Cloud Applications: Industries: Financial Services and Insurance Code: CON7242 Session Type: Conference Session Oracle Blockchain Cloud Service in the Financial Services Industry Wednesday, Oct 04, 12:00 p.m. – 12:45 p.m. | Park Central (Floor 3) - City Oracle OpenWorld 2017
  • 2. Oracle Blockchain Cloud Service Merchant Cash Advance Platform A use case by Oracle, Biz2Credit & AuraBlocks Patrick Cunningham, Biz2Credit | Kiran Murty CTO, AuraBlocks
  • 3. Enterprise Our Focus We have one agenda. And that’s Enabling Blockchain for Enterprises. Blockchain Enterprise Consulting Financial Services
  • 4. Client Overview Biz2Credit operates a Merchant Cash Advance (MCA) Marketplace.
  • 5. Merchant Ideal / Merchant Cash Advance(MCA) Flow / Today Merchant Merchant borrows credit advance  Merchant Processor Lender Lender advances credit  Bank Statements Credit Card History Pass Thru Fees Information Exchanged from Merchant to Lender
  • 6. Merchant Merchant Commits Fraud Scenario / MCA Flow / Today Merchant Merchant borrows credit advance  Merchant Processor Lender Lender advances credit  Bank Statements Credit Card History Pass Thru Fees Information Exchanged from Merchant to Lender Uses Alternate Billing Channels Lender only gets a portion of the Interest Receivable Sends Only a Portion of the Receipts
  • 7. Top Challenges for Credit Providers/Lenders Lack of Transparency to Actual Financials Lender has no insight into the underlying true financials of the borrower High Operational Costs Lender has high operational cost for collections and has to send mystery shoppers to verify operations Lower Lending Potential Lender deliberately lowers the amount of credit offered to limit exposure Fraud Potential Borrower has ways to dodge repaying the credit fees by showing lower revenue through monitored channels Non Competitive Rates To protect against the risk, the lender increases the borrowing rate and becomes non-competitive in the market. This also hurts genuine borrowers $
  • 8. How do we solve these challenges ? Reconciliations & Triggers Numbers from GL and credit card receivables are reconciled and interest rates are adjusted automatically Trusted Network A trusted tamper proof network is created among parties where everyone agrees to the numbers Access to Financials Real time access to key company financial KPI’s is obtained Audited Statements Auditor validates financial statements
  • 9. Solving with Blockchain | A platform is the solution | Tomorrow Merchant Merchant borrows credit advance  Lender advances credit   Audits Financials Lender GL KPIS Bank Statements CC Receipts Oracle Blockchain Cloud Services TRANSPARENCY All parties see the same data and there is maximum trust on the information being shared. TRUST Multiple data points allows for easier reconciliations. Auditor
  • 10. Lending Marketplace Architecture *Disclaimer: All logos are property of their respective owners. Oracle IaaS Oracle BCS Docker Images GO Lang Solo/Kafka Consensus Oracle BCS Orchestration T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4 Admin Console REST Proxy Membership Service Ordering Service Smart Contract/Chaincode Ledger (World State) Nodes/Peers Applications Oracle BCS Orchestration Oracle GL / NetSuite / Other GL Sovereign Identity Ecosystem Datasets
  • 11. Projected Benefits for a $1 Billion Lending Book 1 2 3 4 Operational Efficiency Higher Lending Better Rates Lower Charge Offs OPEX Reduction 21 % Merchant Rate 350bps  Charge Off Rate 51bps  Growth in Book 25%
  • 12. Path to Tomorrow ? Oracle Blockchain powered MCA marketplace is the answer. Let’s see the marketplace in action. A DEMO.
  • 13. DEMO SUMMARY Mobile first digital interfaces for marketplace participants. Credit Providers, Merchants, Service Providers, GL KPI’s all converge and operate on one business Blockchain network. Oracle BCS Gateway enables seamless API integration into public cloud and internal micro- services. Secure, delegated access to smart contract functions and business workflows via channels and certificate based membership enrollment.
  • 15. The Future Blockchain is truly a transformative technology that is positioned to change the fundamental constructs of well established trade and transaction workflows in the marketplace. Oracle , AuraBlocks along with players like Biz2Credit are invested in making this a reality. A Oracle , Biz2Credit & AuraBlocks Presentation. Blockchain Oracle AuraBlocks Biz2Credit
  • 16. Thank You Questions and Feedback Stop by Mascone West SOA DLT/Blockchain Booth Copy of Presentation Run the mobile app See and tweak MCA smart contract code Kiran Murty , CTO kiran.murty@aurablocks.com Richard Brownstein, CEO richard.brownstein@aurablocks.com