Fiinu is a blockchain bank that aims to be a fully licensed bank in the UK by Q3 2018. Find out how the bank works today in our review.
What Is Fiinu?
Fiinu, found online at Fiinu.com, is a blockchain bank actively in development. The bank just launched its pre-ICO in early November.
Fiinu is going through a full bank license authorization process with Bank of England regulators as well as the Prudential Regulation Authority and the Financial Conduct Authority. The bank has been testing and developing its smart credit products since the beginning of 2017.
The team behind Fiinu has experience across the industry. That team has gone through the full UK bank license authorization process once before (for a family office). They’ve also already built a digital banking platform from scratch. The founding team has worked together for 10+ years, and previously worked at a UK-based fintech company that lent and recovered over 4.5 million overdraft-style loans with a trade value of over £1 billion.
The company was founded by Marko Sjoblom, who previously ran Myjar, a payday lending alternative.
Overall, Fiinu aims to become part of Britain’s open banking revolution. Let’s take a closer look at how it works.
How Does Fiinu Work?
Fiinu alternatively describes itself as a “blockchain bank” or a “blockchain friendly bank.” Essentially, the goal is to create a bank that supports blockchain infrastructure. While traditional banks have their legacy infrastructure for legacy financial systems, Fiinu aims to create a bank that’s catered towards the future.
Fiinu is specifically targeting its services towards those who feel underserved by the British banking scene. These people may feel underserved or excluded – say, if they have bad credit or no credit.
One of the key parts of Fiinu is its Finnuscore credit rating system. This credit rating system promises to “lend responsibly to consumers and small businesses against crypto-based assets and help their short-term credit needs with overdrafts whilst encouraging financial resiliency.”
The rating system will take into account factors that ordinary banks do not. The end result is that Fiinu can lend responsibly to people – even if these people don’t have the traditional signals that make them good lenders.
The primary source of revenue for the company will come from net interest income and fair packaged account fees. The bank will lend its long-term depositors savings to consumers on a short-term basis.
In more straightforward terms, Fiinu is creating a payday lending solution built on blockchain technology. As an investor, you can deposit money into Fiinu and earn higher ROI than you would get with a traditional bank. As a borrower, you can borrow money regardless of your credit rating.
How Does Fiinu Use Smart Contract Technology?
Here’s how Fiinu plans to use smart contract technology and blockchain:
“Fiinu will deliver world's first Bank Independent Overdraft (BIO) service by leveraging EU's Second Payment Service Directive (PSD2) and UK's Open Banking Initiative and is currently developing the smart contract architecture to provide digital-assets-backed credit facility that Fiinu's customers can easily access for any personal purpose.”
After Fiinu receives authorization from the Bank of England, the company plans to offer a full-service bank account. That bank account will offer all of the same benefits you can expect from a traditional banking app or account. As an authorized bank in the UK, your money would also be fully protected by the Financial Services Compensation Scheme (FSCS).
Fiinu also plans to launch blockchain-based settlements. They plan to join at least one large blockchain-based settlement network, allowing the bank to process payments more efficiently and cheaply than ever before.
Fiinu advertises all of the following features:
Digital Asset Marketplace:
Fiinu plans to form alliances and strategic partnerships with digital asset exchanges. Fiinu will use APIs to provide customers with access to exchanges through the Fiinu app. Customers can link their accounts to perform near-instant transactions – say, if they want to transfer GBP into digital assets.
Fiinu is committed to joining at least one large blockchain-based settlement network. The network will allow Fiinu to process and settlement payments at a cheaper rate than today’s low-cost remittance options.
Credit Backed By Digital Assets:
Fiinu’s borrowers can take out a loan denominated and repaid in national currency, while still having that loan collateralized by their digital assets. In other words, you can deposit bitcoin to Fiinu, then borrow money and use that bitcoin as collateral. You don’t have to transfer your bitcoin into cash, or liquidate your digital assets.
Personal Current Account (PCA) And Bank Independent Overdraft (BIO):
Fiinu’s personal current account comes with bank independent overdraft features, which means customers can establish a safety net for their current accounts in any other bank. This allows them to avoid paying high unarranged overdraft and unpaid item fees while still having quick access to a line of credit for emergency expenses.
The Fiinu ICO
Fiinu plans to use 10% of the funds raised during the ICO as working capital, with a minimum of 90% of raised funds locked in a multi-signature escrow account until Fiinu receives its banking license.
During the pre-ICO and ICO, you can purchase FNU tokens. FNU entitles you to receive a share of Fiinu Ltd. profits. Fiinu also plans to launch a FNU token buyback program in the future (they plan to buy back all FNU tokens, ideally).
In the unlikely event that Fiinu doesn’t receive its license, then at least 90% of the ETH raised during the ICO will be returned to investors.
The pre-ICO began in October and lasts until early November. The main ICO is scheduled for November to December 2017.
FNU is an ERC20-compliant token. There’s a minimum target of 20,000 ETH for the ICO, with a max hard cap of 400,000 ETH.
Who’s Behind Fiinu?
Fiinu is led by Andy Briscoe (Chairman), Marko Sjoblom (Founder and CEO), Indrek Pari (Co-Founder and CTO), Ragnar Eisler (Co-Founder and Head of Credit), and Juri Andrusik (Co-Founder and DBA), along with a number of other directors and executives.
Sjoblom previously led payday lending alternative Myjar. Briscoe, meanwhile, is chair of The Money Advice Service, a government-sponsored organization in the UK dedicated to improving the financial resilience of the UK public.
Another industry veteran named David Hopton was also recently named as a non-executive director for the company. Hopton has a background with the Bank of England and Santander.
Fiinu is a blockchain-ready bank based in the UK. The company plans to offer short-term lending solutions and investment services. Borrowers can use their digital assets as collateral – something they can’t do with traditional banks. Meanwhile, Fiinu will also have features like blockchain-based settlements, allowing customers to enjoy lower fees and faster settlements than ever before.
To learn more about Fiinu, or to participate in the ICO, visit online at Fiinu.com.