Credit

Our Network of Consumers & Merchants Serve as a Deep Pool of Borrowers

 A scalable, liquid venue for lenders/investors to earn a high quality, real return to directly support spending and revenue, boosting wages before asset prices

 

Our revolving credit portal for lenders/accredited investors also acts as a free distribution channel for funds in the alternative asset class to facilitate a diversified portfolio

If you’ve puzzled why equity markets keep charging ahead even while your wages aren’t, think again before you blame the immigrant’s cheap labour. And it’s not the outsider who is bidding up house prices outside of your reach either. The reason is a little more nuanced and has to do with interest rates as opposed to competition or that over-used buzzword called globalization.

 

The problem is a lot more home-grown. You see low interest rates have a disproportionate impact on the price of capital assets i.e. assets like equities, bonds and real estate, all of which generate income (dividends, coupons and rents) over time. When rates fall, these capital assets jump disproportionately in price.

 

For instance, if the annual income stream is $12k per annum and the discount factor falls from 6% to 5%, the value of such asset jumps from $200k to $240k, an eye-popping 20%. The price jump which follows from simple algebra (sum of geometric series to infinity) gives the semblance of an asset bubble but it’s not really one as it’s an intentional outcome of lower rates pointed created by the Fed.

 

Now the general assumption is that higher asset wealth is monetised into greater consumer spending which leads employers to pay higher wages in wake of higher demand for their goods and services. But clearly reality diverges from assumption as our wages are nowhere on the frothy trajectory of our equity markets boosted by the buybacks funded by record cheap debt on corporate balance sheets.
So, how must we rectify this situation? We need a private market conduit that creates an outlet for investors to earn a high–quality, short term rate of return while directly benefitting demand for consumer goods and services. That’ll keep them from lending cheaply to mature companies that use it to lever up their balance sheets to boost stock prices in the short run. Instead it will go into lending to consumers to boost demand for goods and services which will mean that companies are more likely to pass on higher revenues as higher wages. Equity prices will still go up but this time due to higher revenues and not because low revenues have been boosted by a lower discount factor.

 

Sound theoretical? Not here. If you know where you want to get to, technology is there to help. Innovation starts with recognising the need. And then using technology to accomplish it.

 

Our non-bank, regulated fintech platform creates a marketplace for institutional/accredited investors to lend short term to consumers and small and medium size businesses. For it to be a sufficiently deep venue for institutional capital, it creates a confluence of consumers & merchants to serve as a large and varied pool of borrowers.

 

With this objective, it offers an interest-bearing deposit & revolving credit facility and allows merchants to take debit & credit payments from customers free of transaction fees and transmit loyalty points in the spirit of a Universal Store Card.