Revolutionizing the Banking industry

[pulidopw]

Hey all,
just throwing a farfetched idea out there, would like some feedback.

Please pick this one apart:
1. A P2P Lending/Investing app similar to Robin Hood. I drew inspiration from the GameStop stock rise, It would utilize crowdfunding to provide competitive interest rates to that of modern banks, provide inflation proof insulation on loans by using Swiss Francs as opposed to USD, also security and transparency for the consumer by utilizing a blockchain ledger system. The site itself would be nearly free market with some correction if necessary, little to no commission taken on my end. Loaners would be receiving greater cut of yields on interest rates than banks would give them, borrowers would receive lower interest rates than traditional banks. I was thinking credit scores would still be utilized as a reference for lenders to choose who to allocate money to, and an e signature for collateral to be signed over (Morgage, deeds, vehicle ownership, ect). The idea would be to do what Netflix did to blockbuster, which is to revolutionize/streamline the banking system, not to simply exist in the small P2P market. So far as I could gather, trying to edge out modern banks would be very difficult given the brand for security, their size, and recognition in modern culture. The niche of current P2P business targets people who are high risk and have low credit scores that couldn't get loans from standard banks. I want to change this by targeting a blue ocean that is the normal consumer base of standard banks: People with high credit scores who desire security in their transactions, but would also like non predatory loans to pay for essentials (operations, medical emergencies, ect). There's also a blue market for crowdfunding to start up businesses: those being the 99% of businesses at places like plug and play that which do not get investor funding. That being said this is a very big mountain to summit. However there's a quote I live by: You cant beat the current swimming up stream, but you can dig a trench and redirect the flow of water. Winners will find a way. There's definitely flaws with the modern banking system, flaws which can be capitalized on. Let me know your thoughts and suggestions

2. I also pitched this idea to a couple mentors provided by UC Berkeley's business school and the feedback I heard was: P2P will never compete with modern banks in security and clientele, it's a small and relatively obscure niche, too many moving parts that would need to be outsourced by means of currency exchange, banking laws, FDIC regulations, and connecting the accounts/banks of various lenders and borrowers. While Robin Hood's business model succeeded in that it cut out the middle man, I would essentially become the middleman/Bank in my business model. It wouldn't provide enough of an incentive for people to close their accounts at chase and adopt my business. Was wondering if you guys had any ideas about possible solutions or things to look into when trying to tackle these issues!

 

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