San-Juan’s Arival Bank Gets Funds Via Crowdfund to Help Crypto Startups, Become a “Real Borderless Bank”
Arival Bank’s founders are currently using Circle’s recent acquisition, equity crowdfunding platform, SeedInvest and UK-based Crowdcube, to raise funds in the hopes of offering assistance to crypto startups and others reports news outlet, Coin Desk.
At the moment, Arival Bank is waiting on an International Financial Entity (IFE) license from Puerto Rico prior to their launch – something that has been applied for as early as August 2018. This will supposedly help the bank fit in within the crypto market and the notion of decentralization, while helping to establish a connection between the business and the U.S Federal Reserve system.
More emphasis has been placed on the acquisition of IFE, which is foundational for the bank. In addition to the aforementioned benefits of holding an IFE license, it is also believed that the license would help Arival establish relationships with Puerto Rican banks that favor crypto services, some of which include San Juan Mercantile Bank and Trust, Medici Bank and Noble Bank.
The standard way we’ve seen funds being raised, is through an Initial Coin Offering (ICO), which was the center of attention during 2017. This approach would probably not work in this instance, as there is no particular token being offered, however, one might argue that using a crowdfunding platform is quite new for the crypto market.
According to Samuel Lawson, who shared the general idea with Coin Desk, using SeedInvest is their way to get the general public involved and not just investors. This method not only induces “word of mouth” but also allows them to see what is in demand and how it can be utilized to build upon the technology.
As for Arival Bank’s existence, the trio behind its likes, Slava Solodkiy, Lgor Pesin and Berger, felt that traditional banks were either hesitant or too slow in responding to those coming up with startups and other organizations.
Their primary target includes crypto startups and given the potential the technology has in enhancing all sorts of industries, the trio felt it was necessary to do something about the current barrier to entry. Interestingly, they don’t simply stop at crypto startups, and based on their list of target markets, it seems like the trio is trying to help those who are left feeling helpless.
Here’s an extract of what Solodkiy had to say:
“We want to serve clients who are getting rejected by traditional and even digital banks [including] crypto-related businesses, charity organizations, freelancers […] expats, refugees […] in Estonia.”
When it comes to the process of creating accounts with Arival Bank, it seems like it is quite simple as one is required to get verified only once. More specifically, Solodkiy shared that:
“You need to be verified only once by us, and do not need to provide the same package of docs and answers for each standalone service. You can see and manage everything from the same window.”
Evidently, the trio is seeking to enhance efficiency in acquiring necessary funding, which is something that traditional financial institutions lack, as consumers are typically required to redo applications every time they seek assistance. To further promote convenience, the team plans to offer services online, without having to get each consumer visiting a physical branch.
Currently, Arival Bank has 700 applications to go over, which include crypto exchanges, wallet services and ICO-backed startups reports Coin Desk.
Moving forward, the trio wants to create a work space that brings together their clients and startups to see whether collaborations can be established to promote further growth within the crypto and blockchain industry!