05 Jun Bancore Newsletter June 2018
This Newsletter illustrates why – after having tested several configurations of mobile payment systems over the last 5 years – Bancore is now in a situation where the very specific business models we have helped develop over the last few months (described below) will lead to our transaction volume, EBITDA, and resulting company valuation increasing significantly, starting in Q3 of 2018.
This is due to our redefined business focus, our expanded offering (including our new and highly promising business partnerships), and a much wider geographic presence that will include developed economies in addition to the emerging markets we have focused on so far.
From investor and external advisor feedback, we are conscious that some feel we should focus on anarrower business model, for instance only supplying “white label” mobile payment platforms to the (surprisingly) high number of operators who may have the concept for the business front, but no functional “engine room” to manage the financial transactions of the users they sign up.
Bancore, on the other hand, knows from hard-earned experience that – due to our unsurpassed payment platform, which continues to be the basis of everything we do – we are capable of addressing both business and consumer needs, and we think we have the intellectual and business discipline to juggle these business models simultaneously: however, in order to attract those investors and business partners that we want on our side, we will in future put increased emphasis on providing the mobile payment platform that consumer-facing companies need in order to collect payment for their products and services. When circumstances dictate, we will therefore also license out a white label variant, and the backbone of our platform remains our ability to immediately issue a mobile “bank account”, tied to a virtual VISA or MasterCard.
Our heightened attention to B2B activities will not be at the expense of activities that we have painstakingly built up over the years, because whenever we have reason realistically to believe that already launched consumer-facing activities have a high chance of success, we will continue to support them. In a few carefully selected cases we will even become the front end of new consumer-branded activities – see MonnyMe and Nigeria sub-activities, below.
A refresher of Bancore’s business divisions:
“Bancore” is our corporate name and will in future no longer be used to describe operational activities,
“Bancore Connected” is the sub-brand of activities that are run by external companies using our platform for their own purposes.
“MonnyMe” is our new consumer-facing brand, that will appear on consumer sites and be the advertised umbrella brand for all future consumer services: in addition to monetary transactions, it will offer services such as travel, insurance, premium card benefits and others.
At this point, and to get you into the mood for the specific examples that follow, we suggest that you read the non-technical “At a glance” that follows. We have already used it successfully as an introduction for potential stakeholders who are newcomers to the subject of “Payments”.
At a glance: a non-tech description of Bancore’s key business streams:
Mobile payment platform:
Bancore is a late start-up mobile payment company and owner of a sophisticated in-house developed payment platform, capable of serving both banked and unbanked consumers, as well as businesses looking for payment efficiencies and fraud reduction.
Virtual bank account and payment card:
Bancore’s platform will immediately open a virtual bank account and issue a virtual payment card (MasterCard or VISA) to KYCd customers, who will in many cases be able to perform cashless and online transactions for the first time in their lives.
Because of its associations with major card companies, national and local banks, and certain government agencies, Bancore has been thoroughly due-diligenced and approved to operate around the world. Bancore needs no banking license, since its consumer facing is layered on top of BINs (Bank Identification Number) and licenses held by local cooperating banks.
Bancore’s main business streams:
Bancore’s versatile technology can perform a broad range of payment services for many different industries and in a multitude of situations. The following shows the main services provided by Bancore’s Mobile Payment Platform:
1. Installing a P2P payment “bot” on Social Media pages across Europe:
In cooperation with Nets (a $5.3 billion Danish interbank switch) Bancore will launch “monny.me”, initially via Facebook Messenger, allowing payments and transactions to be carried out where the customer most frequently is, i.e. on his or her Facebook page. This will be followed shortly by similar bots on Instagram and WhatsApp, thereby potentially reaching millions of users. The excitement around monny.me’s July 1, 2018 launch is expected to create a considerable word-of-mouth viral effect.
2. Providing a payment capability to consumers who are part of major databases:
In addition to Bancore’s own and growing database of 26 million consumers, we are working with a major aggregator who has obtained the rights from mobile carriers to use the consumer profiles of 750 million active and paying customers. By issuing a virtual Bancore account and payment card to these consumers and giving them access to a mobile payment platform, they can now access certain products and services, such as selected types of insurance, microloans, and instalment purchases of, say, simple smartphones.
3. P2P remittance Gateway:
Both international, local, and intra-country remittances, primarily from expats back to their families in their
countries of origin. However, can also be local bill payment, incl utility bills or online purchases. Bancore will this year transfer in excess of $75 million in/to Nigeria alone and is likely to quadruple this business in the months to come, by entering into agreements with additional remittance companies.
4. B2P payments:
Starting in Nigeria, our local operating company will handle major revenue streams such as monthly agricultural subsidies to 25M farmers. Bancore can also handle payroll for SMEs and send cash advances to travelling employees of participating companies.
5. B2B payments:
Bancore is in advanced talks to offer suppliers the possibility of cashless deliveries from wholesaler to retailer. The latter will – just prior to the delivery – pay the supplier directly with a Bancore mobile transfer, rather than risk handing cash to the driver of the delivery van.
1. NETS and monny.me
Nets is Europe’s 2nd largest interbank payment processor, and in a major transaction recently became US-owned. Bancore is proud that Nets has chosen us as its partner for the July 1st European launch of its “Bank Version 3.0” which is based on a social media “bot” allowing consumers to perform all their banking and payment transactions on a bot installed on Facebook Messenger, Instagram Messenger, or WhatsApp. [“Bank Version 3.0” is a relatively new concept in banking, based on the realisation that younger generations have no wish to visit brick and mortar banks, but will prefer to communicate with a “bank bot” on their social media pages.] Bancore’s trademarked monny.me bot will be the consumer-facing brand of this project, and fees from all monny.me transactions will be shared between Nets and Bancore. The transaction volume is expected to be considerable and we will probably later this year be pleasantly surprised by the first reading of monny.me’s true potential.
2. OTM – Out There Media:
OTM is the Athens-based, Austrian-Greek aggregator of huge databases consisting of active buyers of prepaid airtime (talk time). The company has 450M active consumers in Asia and 300M in Africa, for a total of 750 million active consumers who can be financially “on-boarded” by Bancore, ie issued with mobile accounts and virtual payment cards – although in reality, and in order not to tempt fate, we will “bank them” in smaller batches of up to 30-40 million consumers at a time. Once we have given them a basic payment ability, we will in close cooperation with OTM and the mobile carriers offer external marketing companies access to specified consumer demographics, but only where users have given permission to do so. Bancore will always be the provider of the payment platform and will share transaction fee revenues with OTM. This activity can become a major source of revenue, as we facilitate access for global service providers and product marketers to approach these huge consumer groups.
3. Nigerian B2B consumer services:
Although it has taken us a long time to get traction in Nigeria, we believe that we are close, because our JV partner Chams and Bancore have amicably decided to dissolve the ChamsMobile partnership, after which each JV partner will focus on what he believes in and is good at. We have established “Bancore Global Services Ltd” as a new stand-alone company in Lagos and will, once the practical details around the separation have been finalised, focus on:
Our successful cooperation with the SmallWorld remittance company which may be expanded to include other African countries as well.
With SmallWorld we are also testing recipient cash-out via cardless ATMs, loyalty cards, and transfers to Microfinance institutions.
in a further effort to increase “financial inclusion”, Bancore has been chosen by the Nigerian n-Power job creation program to manage the quarterly distribution of scholarships to 16,000 selected recipients and, when successful, this will be expanded to include a multitude of similar schemes that are currently stalled because no suitable payment method had been found until Bancore got involved.
4. Bancore Europe
We are relaunching Bancore Europe, primarily as a remittance portal for expats sending money home, but this time including for instance a MonnyMe platinum card that will give qualifying holders access to VIP airport lounges, travel insurance and “CashBack” in more than 70,000 European retail outlets (“CashBack”: retailer is allowed to add an amount to the charged amount and pay it out to the cardholder in cash). We will of course make all other Bancore services incl MonnyMe available to European users as soon as feasible.
In closing, a few words about GDPR:
You are all aware of the new data protection regulations that just came into effect and you will be pleased to know that all Bancore activities are GDPR compliant: we always ask for advance consumer permission before on-boarding, users have access to their information at all times and can also opt out/unsubscribe with immediate effect.