The Future of ITMF
The value ecosystem that ITMF has set out to accomplish would effectively create a global currency that closely mimics the advantages of traditional fiat local banking, without international restrictions.
ITMF believes that the value ecosystem is a key pre-requisite to create a fully-fledged people's bank, where a majority of banking activities can take place without the overhead of a traditional financial institution or bank, owned by a decentralized community of people from all over the world, which can pave the way to explore new innovations not previously sought by a traditional corporate structure. Part of ITMF's future is to bank the unbanked of the world and create a global, social lending or peer-to-peer (P2P) lending platform.
Banking the unbanked and underbanked
According to the Global Findex Database from the World Bank in 2017, the global number of unbanked and underbanked people is 2 Billion. Without access to a formal financial system, people are left to transact often in ways that are inefficient or prohibitively expensive.
ITMF will be uniquely positioned to expand financial inclusion to the unbanked or underbanked by being able to provide banking-like activities by harnessing mobile technology to close the distance from them to a bank to the proximity of a smartphone.
Social lending through the ITCO network
More than US$245 billion of funding was channeled through alternative finance platforms such as social lending and crowdfunding in Asia Pacific (APAC), according to a report by the University of Cambridge, the Australian Centre for Financial Studies and the Tsinghua University. Southeast Asia has one of the fastest growing economies in the world, but small and medium-sized enterprises (SMEs) that make it up have limited access to financial credit.
Providing global, cross-border social lending services on the ITCO network provides some compelling and unique advantages. Since ITCO is a borderless global cryptocurrency, transfers are instantaneous with zero network fees, which lenders and borrowers will benefit from reduced operating costs of the social lending platform.
With ITMF's focus on crypto-corporate governance, the loans can be made out in ITCO as the base currency and existing ITMF fundholders will have crossover access to the social lending platform. Through ITMF's fund management experience, there are very similar transferrable experiences from fund management to social lending to audit loan applications.
In addition, the wealth of data that can be mined from the social lending platform will inform and create more favorable opportunities in its own lending.
Fractional ownership of real estate as collateral
One of the pain points of social lending platforms is the risk of borrowers defaulting on repayments, which typically creates the high risk, high reward tradeoff of social lending. One method of reducing risk to lenders is through the backing of loan with the borrower's properties and real estate. However, such deals are usually reserved for higher loan amounts which matcch the value of the real estate. This limits the type of loans that can be backed with real estate.
ITMF believes that by incorporating fractional ownership of real estate, ITMF's social lending platform will be able to stay ahead of the competition by creating flexibility in the loan amount a borrower can request by using a portion of the ownership in a real estate as collateral to the loan, and reduce the risk of default payments to lenders due to the collateral backed loans.
ITMF may further explore fractional ownership of real estate using blockchain technologies to faciliate a global-centric means of fractional ownership, and collateral backing.