Wish Finance whitepaper
Transcript of Wish Finance whitepaper
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WHITEPAPERCompany
whitepaperWish Finance has figured out how to solve one of the biggest problems for people that are involved in cryptocurrency - actually spending the currency."
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EXECUTIVE SUMMARY
MISSION AND VISION
MARKET OVERVIEW
PAIN POINTS
WISH FINANCE BUSINESS MODEL
GO-TO-MARKET STRATEGY
WISH FINANCE VS COMPETITORS
TEAM AND EXPERIENCE
WISH FINANCE SOFTWARE
LENDING IDEOLOGY AND RISK MANAGEMENT STRATEGY
CONNECTION TO PAYMENT INFRASTRUCTURE
PORTFOLIO TRANSPARENCY ON THE BLOCKCHAIN
INVESTOR RELATIONS AND REPORTING
COST STRUCTURE
FINANCIAL ASSUMPTIONS
ICO STRUCTURE
CRYPTOGRAPHIC AUDIT
ESCROW
ROADMAP
ICO MILESTONES
EXIT STRATEGIES FOR INVESTORS
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EXECUTIVE SUMMARY
Executive summary
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ACROSS THE WORLD, it is clear to see the importance of small and medium companies within their national economies.
THEIR GROWTH OVER THE LAST THREE DECADES HAS PROVEN that these small and medium enterprises will play a huge part in future economic progress, both in developed and developing countries.
FOR BIG COMPANIES, SMEs represent the world from which they came and from where their future competition will come. SMEs are important partners and suppliers to these larger companies.
FOR INDIVIDUALS, SMEs often represent their first job, the first step in their career. They are also a first step to the world of entrepreneurship.
FOR THE ECONOMY AS A WHOLE, SMEs are launchers of new ideas and processes, accelerating industry growth with a more effective use of resources.
MERCHANT SMES, broadly, includes every small supplier and service provider we use in our daily lives.
IT IS NOT A SECRET: being a small business owner is a difficult job without any warranties or much protection.
AND WHEN SMALL ENTREPRENEURS FACE TOUGH TIMES OR SEE AN OPPORTUNITY TO GROW THEIR BUSINESS, they often struggle to find the funds that they need.
Banks and other large lenders donʼt like to work with someone that doesnʼt have big assets.
Grey market lenders ask for huge interest rate.
Gladly, we are living in the 21st century, so you can forget about this struggle!
Wish Finance was created to serve small and medium-sized business owners and provide fast and smart funds to merchants. We have spent many years investing in our proprietary scoring technology specially designed to work with cash flow based businesses without many assets.
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When a small businessman needs a loan, he shares with us his real transaction
history from a POS terminal - it is as easy as clicking a button on our website
or on our mobile app. Our neuronetwork combines this data with:
We use more than 85 different variables in the Wish Finance scoring machine.
In 24 hours, a loan is issued and the card is shipped with a courier. No more
lost opportunities!
Then, each time someone buys from this merchant and pays bycard, 3-5% is
deducted from the transaction to repay the loan. This way, repayments are
made seamless and effortless for SMEs. The more customers a merchant has,
the faster the loan is repaid!
And what about SMEs that face hard times and have to go out of business?
Nothing to worry about - each loan is protected from borrowerʼs bankruptcy
and the remaining part of the loan will be repaid by the insurance company.
Wish Finance is a safe and smart lender for 21st century small business:
Created to serve SMEs and support the local economy.
• market data
• SME industry data
• location
• local economy state
• time of the year
• historical records
• Fast lending process
• Affordable interest rates
• Insured loans
• Seamless repayments
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MISSION AND VISION
Mission and VisionMission and Vision
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07 WishFinanceʼs mission is the creation and introduction of a straightforward, transparent and accessible channel for financial inclusion into merchant SME segments.
MERCHANT SMES IN OUR UNDERSTANDING ARE:
Broadly, the category includes every small supplier and service provider we use in our daily lives.
It is currently extremely difficult for such SMEs to secure the funding they need to ensure business continuity. This is typically because they have almost no assets to use as collateral, and therefore banks and regular lenders are unable to work with them. Wish Finance has been created to design a credit scoring system based on cash flow to change this status quo.
IN OUR VISION FOR THE FUTURE, WISH FINANCE IS A GROUP OF COMPANIES SERVING SMES ACROSS MOST CASHLESS COUNTRIES:
• Convenience stores• Corner shops• Cafes• Restaurants• Small retailers• Barbers• Beauty salons• Drug stores• Repair shops• Ateliers
Wish Finance - current company, alternative lender for SMEs
Wish Finance Fund - new future company, including fund providing liquidity for Wish Finance
Wish Bank - new future company, specialised bank serving SMEs
Wish Reliance - new future B2B insurance company for the SME segment
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MARKET OVERVIEWMarket
overview
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Alternative lending refers to a growing industry of online and mobile-based lending platforms for different borrowing needs, including consumer, small and medium enterprise (SME), student loans and mortgages. Within the last 10 years, this industry has emerged to become the subject of much discussion and speculation due to the technological innovations it employs to simplify and expand consumer access to capital; its stance on regulation; and the potential threat it presents to traditional financial institutions.
Alternative lending platforms provide an end-to-end loan experience through digital delivery, from application and origination to underwriting and servicing. Alternative lenders perform the credit underwriting process and approve or decline a loan application based on the borrowerʼs risk score in near-real time, relying heavily on proprietary algorithms and the collection of different sources of data directly from the borrower or third parties. The efficiency, scalability, reduced cost and digital capabilities provide clear differentiators to consumers when compared to a traditional bank, which can take many weeks to process a loan application.
The alternative lending ecosystem is defined by a large variety of entities and participants, each of them playing a distinct role to connect borrowers and investors. This concept is essential to understand the industryʼs evolution and outlook, as innovations are emerging:
• Direct lending platforms with lending license, lend out of their books
• Credit Scoring - High in-house quality control of credit and disbursment
• Operational Metrics - higher spread and superior return metrics
• Tie-ups with a single lender for loan origination
• Credit Scoring - Dependent on approval fron single lender
• Default Risk - Lies with single lender and platform bears risk
of losing the relationship (or source of loans)
• Tie-ups with non-accredited lenders for loan originaDon
• Credit Scoring - Done in-house for lenders
• Default Risk - Lies with lenders
• Tie-ups with multiple lenders for loan origination
• Credit Scoring - Dependent on approval from various lenders
• Default Risk - Typically spread across multiple lenders
ON-BOOK LENDING
PEER TO PEER LENDING
SINGLE LENDER LOAN ORIGINATION
MULTIPLE LENDER MARKETPLACE
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Alternative lenders can be broadly segmented across two different
dimensions, borrowers served and funding model:
Borrowers served:
Funding model:
• SMEs: Lenders like OnDeck, Funding Circle, Kabbage or Wish Finance
position themselves primarily to serve SMEs, providing borrowers with
the liquidity necessary to purchase inventory, expand the business or
even refinance debt.
• Individuals: These are alternative lenders focused on specific products
for the individual, mainly consumer loans (Lending Club, Prosper and
Avant) and student loans (SoFi and CommonBond), with a growing offer
on mortgages, and further diversifying their offerings to serve their
customers holistically.
• Marketplace lenders seek to transfer the risk of holding the loans from
one party to another.
• Balance sheet lenders bear the risk of holding the loans on their own
books, though for a limited period of time, reducing exposure.
Throughout this paper, the terms marketplace lenders and balance sheet
lenders - different types of alternative lender - will not be used
synonymously, as their differences will be discussed.
HOW HAS THE MARKET GROWN?
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EUROPE AND CENTRAL ASIA
EAST ASIA AND PACIFICMIDDLE EAST AND NORTH AFRICA
SOUTH ASIA
SUB-SAHARIAN AFRICA
LATIN AMERICA AND THE CARIBBEAN
NUMBERS OF MSMES (MILLIONS) CREDIT GAP: UNSERVED & UNDERSERVED (PERCENT)
Total MSMEs
(Formal &
informal)
> 70 50-60 < 40
60-70 40-50 no data
With
Checking
Account
With
Loan/
Overdraft
Unserved +
Underserved
52
219 3
10
2012 6 10 188
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92
78
34
11
36
4018
422
2513
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Through a targeted approach of serving the underserved market, alternative lenders have been able to gain a foothold in the lending market. However, in order to continue their high growth rate, they will need to differentiate themselves in multiple ways, including:
Continue to simplify the experience by making it faster and easier for borrowers to access capital
The digital infrastructure that is already facilitating the onboarding process for consumers and SMEs can also be designed to reduce critical pain points in the loan processes for new products, such as mortgages or car loans.
Qualify more underserved individuals and businesses using big data and analytics on prospect data
Many underserved segments are currently targeted, but there remain many others that have not been addressed by traditional financial institutions or alternative lenders. The length of credit or employment history are some of the limitations set in place even by alternative lenders to their clients, leaving young individuals or recent immigrants out of the target population.
Offer competitive pricing while remaining profitable by lowering funding costs
Firms in the consumer lending space have effectively reduced operating ratios to 2% compared to a traditional bankʼs 5-7%. This allows them to offer competitive rates; however, the nature of marketplace lending makes it impossible for these firms to access cheap deposit funds. To lower funding costs meaningfully these firms need to expand their sources of funding by making the asset class accessible through wirehouses and financial advisors.
Gain access to larger groups of clients, supported by a holistic financial offering through partnerships
Partnerships with traditional financial institutions have taken place, initially to secure banks as investors, and now with a growing number of firms looking to enhance their lending capabilities. This will likely expand to other types of firms, even outside of the financial services space.
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PAIN POINTSPain
pointsPain points
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Five years of extensive experience of providing alternative marketplace lending firms in the US and UK with funds and understanding market demand has made it possible to create Wish Finance. Founded in 2016, the organisation addresses the major pain points for borrower SMEs, with Wish Finance as lender.
PAIN POINT: ITʼS NOT EASY FOR SMES TO SECURE A LOANWish Finance provides fast customer onboarding via the companyʼs website and mobile application. The process in its entirety takes up to 20 minutes, including uploading photos of company certificates and documents. Decisions are made within 24 hours of application time, a Visa business card is delivered by courier to the borrower (in Singapore and Hong Kong only), and the loan is instantly available. Payment schedules and account information are accessible 24/7 via the website and mobile app.
PAIN POINT: BUSINESS LOAN UNDERWRITING TAKES 1-2 WEEKSAll processes at Wish Finance are optimised and most of them automated, so processing the documents from SMEs, scoring, underwriting and finally transferring the loan takes no more than 24 hours from application received.
PAIN POINT: SME LOANS FROM BANKS ARE EXPENSIVEThanks to these efficiencies Wish Finance can lend money to merchant SMEs more cheaply than most banks. The typical interest rate is a rate of 11-28% p.a., or just 1-2.5% a month.
PAIN POINT: MERCHANT SMES CANʼT BE SCORED BY TRADITIONAL LENDERSDue to the focus on merchants, Wish Financeʼs scoring and financial products are not based on assets and securities as they are for traditional lending institutions. Instead, Wish Finance acquires transaction data from POS providers servicing the borrower SME. Using the Wish Finance API we can connect directly to real-time transaction information and are able to score the merchant based on their cash flow.
PAIN POINT: IT IS DIFFICULT TO CONTROL DEBT COLLECTION FROM SMESTo make payments effortless for the borrower and lower the loan risk, every borrower gives consent to their POS provider to deduct 2-5% of every incoming payment from their customers at the moment of application. Loans are therefore repaid with every transaction and every sale made by the borrower. The system is simple, safe and transparent.
PAIN POINT: AN SME MAY GO BANKRUPTLife can be tough sometimes. We at Wish Finance understand this. That is why every loan is insured against the borrower going bankrupt by our partner insurance company, with whom we share revenues.
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WISH FINANCE BUSINESS MODEL
Wish Finance business model
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As short-term lender, Wish Finance provides merchant cash advances and business loans. It offers terms of 3-36 months, and SMEs can borrow as little as S$5,000 or as much as $100,000. A loan from Wish Finance costs less than a traditional merchant cash advance.
TO QUALIFY FOR A WISH FINANCE LOAN, THE SME COMPANY MUST:
Wish Finance is an off-balance-sheet lender. This means we are not a marketplace. Wish Finance attracts funding from hedge funds and other financial institutions and uses this to provide loans to SMEs.
Our first USP (unique selling point) is software that evaluates hundreds of loan applications within minutes based on analysis of data, including real-time POS transactions, cash flow, past loan status, and vendor payment history.
Our second USP is direct access to POS transactions. Every time customers pay our borrowers for goods or services using their POS terminal we deduct 2-5% to cover the loan. Itʼs less risky for us and effortless for the borrower.
Our third USP is the insurance protection from bankruptcy we provide for each SME. Insurance repayments are covered within the loan.
IN SUMMARY:
• Have 12 months of transaction history. • Be generating over $100,000 in annual revenues.• Be located in Singapore or Hong Kong.• Be connected to a POS terminal from which we are
able to gain transaction data.
• Wish Finance attracts money from hedge funds and financial institutions for a fixed low interest rate.
• Wish Finance provides loans to SMEs based on real financial data.• Every payment through POS repays the borrowerʼs loan.• Borrower is insured against bankruptcy.• Wish Finance shares revenues with POS data provider and insurer.
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Go-to-market strategyGo-to-market strategy
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Because our scoring and business model is strongly reliant on real financial transaction data and access to POS payments to make the default rate as low as possible, our go-to-market strategy is straightforward and transparent. To start doing business in a new market Wish Finance will:
WISH FINANCE IS THEN READY TO LEND ON A NEW MARKET.
The larger the POS vendor, the more loans Wish Finance can start issuing from the very beginning. Our marketing team will do the rest.
Find the POS data vendor within the market.
Establish an insurer for our SME bankruptcy protection program.
Set up a local company, fully controlled by our Singapore HQ.
Sign partnership agreements with both POS vendor and insurer.
Connect to POS data using our APIs.
If regulation requires (not for Singapore and Hong Kong), gain all proper licenses for a non-bank business lender.
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WISH FINANCE VS COMPETITORS
Wish Finance vs Competitors
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Wish Financeʼs business model is balance-sheet lending to merchant SMEs with cashless turnover. This means we can lend to any small business where customers pay with credit cards, Apple Pay, Android Pay or any modern form of payment.
Our loans vary from $1,000 to $100,000 with terms of 3-36 months and an interest rate of 24% APR. The approval time is 24 hours for every loan, and we require no personal guarantee.
Here is what we know about some of our major competitors around the world.
LOAN AMOUNT
ONDECK CAPITAL KABBAGE PAYPAL WC
$5 000 - $500 000 $2 000 - $100 000 $1 000 - $85 000
TERMS 3 - 36 MONTHS 1 - 12 MONTHSNO FIXED MATURITY DATE, BUT TYPICALLY TAKES 1-18 MONTHS
EXPECTED APR RANGE 30 - 50 % 40 - 80 % 15 - 30 %
APPROVAL TIME SAME DAY SAME DAY SAME DAY
CREDIT SCORE 500+ 550+ NO MINIMUM
HOW MUCH WILL THEY SEND?
15% OF ANNUAL REVENUES
VARIES 4-15% OF ANNUAL PAYPAL REVENUES
PERSONAL GUARANTEE YES
WWW.ONDECK.COM
YES
WWW.KABBAGE.COM
NO
WWW.PAYPAL.COM
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Team and experience
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Eugene is an entrepreneur and angel investor with more than 15 years of experience in data science, e-commerce, consulting and financial technologies. He has been the founder of three startups since 2000, all of which he successfully sold. His consulting clients over the last 10 years have included Aliexpress, Friendster, Zalora, Lazada, The Pizza Company, EFES, Wrigley's, Heineken, Dominoʼs Pizza, PepsiCo and IKEA. More recently, Eugene has directed his efforts towards fintech, financial inclusion, blockchain, new SME scoring technologies and open banking.
Ruslan has over 15 years of experience in Banking IT. Previously, he was involved in support and development for numerous IT projects. He worked as a teamer lead and tech lead in international payment services and banks. Ruslan knows how financial technologies should be built, how stable and secure infrastructure should be, and how to deliver products and provide a predictable service.
Michael is a lawyer and advocate from Israel. As a lawyer he has specialised in M&A and deal structuring in the financial, healthcare, commodities and telecommunications industries. Recent experience includes project management and launch expansion management in Israel and the Asia-Pacific region. Since receiving an MBA from INSEAD (2015) Michael has obtained extensive experience as a financial and anti-crisis manager in Singapore.
Eugene GreenFOUNDER
AND CHIEF EXECUTIVE OFFICER
Michael ElgortCHIEF COMPLIANCE
OFFICER
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Ruslan GavinovCHIEF
TECHNOLOGY OFFICER
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WISH FINANCE SOFTWARE
Wish Finance software
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As a financial and technological company we invest heavily in our software to maintain a high level of security, data integrity and business scalability.
Wish Finance is built on microservices. As a high-level overview our system can be divided into a number of subsystems:
Utility layerConsists of our hardware servers where we host other subsystems, including website and mobile applications and analytical software for real-time monitoring of security and performance. Server-side built on Python, client-side built on PHP+HTML5+JS.
Scoring and monitoring layerThis is where we transfer all collected and stored data to make decisions. Nothing is stored in this layer for the long term: it is the brain of Wish Finance, but not its memory. This layer is mostly built in Python.
API layerCommunication layer servicing all transactions between different elements of the Wish Finance IT infrastructure, including mobile apps and partners - POS vendors, data providers and insurers. Built in JSON.
Data layerWish Finance stores all sensitive data in a PCI-DSS compliant cloud from Amazon Web Services. We use PostgreSQL for transaction processing plus general needs. Currently experimenting with Amazonʼs Redshift for analytics.
Blockchain layerOne of the main advantages we see in the blockchain is transparency of the business for employees, customers, investors, governments and the general public. Wish Finance is getting ready to publish the performance of its entire loan portfolio on the Ethereum blockchain.
This means it will be possible to see the loans Wish Finance has issued and how every loan is performing. However, nobody will be able see the identity of the borrower or the nature of the business. We are transparent as a business, but responsible for the data we have.
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Lending ideology and risk management
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ALTERNATIVE LENDING CAN BE RISKY. WISH FINANCEʼS MODEL MINIMISES THE POTENTIAL RISK OF BORROWERS DEFAULTING ON THE LOANS WE ISSUE:
TOGETHER WITH OUR RISK MANAGEMENT STRATEGY, OUR LENDING IDEOLOGY RESTS ON A FEW SIMPLE IDEAS:
• We lend only to established SMEs with at least 12 months of transaction history
• We lend only to SMEs connected to one of our partnersʼ POS providers• We have a built scoring system with machine learning technology to be
more efficient at utilising every loan and piece of data • We deduct 3-5% of each payment customers make to our borrower to
provide us with greater security, and the borrower with a seamless repayment experience
• We insure each borrower against going bankrupt for the full amount of loan we have provided
The more data we have to make lending decisions, the better
We currently use one main data stream: corporate data about the company and its owners/directors, open market data about the industry and economic landscape of the country, and real transaction data.
We do not lend more than the borrower can afford to return without harm to their business
We help SMEs to grow, we educate our borrowers on how to use their cash advances and we advocate business loans as financial tools to make businesses more effective.
We secure our own business by diversifying our loans portfolio across different countries, industries and types of borrowers
Every country and every economy has its ups and downs. The more diversified a portfolio we can build, the more stable and effective a business we can maintain for our shareholders.
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CONNECTION TO PAYMENT INFRASTRUCTURE
Connection to payment infrastructure
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Wish Finance connects to payment infrastructure providers via its own API layer. We do this to ensure there are as few as possible critical functions for secure lending and a seamless repayment experience for borrowers.
USING THE APIS CONNECTED TO THE ACQUIRERʼS IT SYSTEM, WISH FINANCE CAN:
Our APIs are RESTful and based on JSON. All communications between our IT system and acquirers take place within a secured VPN and cannot be accessed from the outside. Data is stored in the Amazon Web Services PCI-DSS certified Cloud. Data security is our highest priority.
Get consent from potential borrower to share transaction history for scoring.
Get data from acquirer and upload it to Wish Finance scoring layer.
Open new account for borrower inside acquirer’s ecosystem.
Fund this new account with the loan.
Issue a new Visa/MasterCard card connected to this account.
Set up limitations for how this funding can be spent (based on what the borrower stated in their loan application).
Set up a rule to deduct 3-5% of each payment at borrower’s POS.
Get daily transactions from acquirer.
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Portfolio transparency on the blockchain
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Wish Finance plans to be the first ever alternative lending company to record
the whole loan portfolio on the Ethereum blockchain.
Currently our solution is under development. What we plan to do is:
Every time we issue a loan, the borrower is insured by Wish Finance for the full
amount of loan provided, plus our calculated earnings from this loan. An
insured event occurs when (though obviously we prefer if) the borrower is
unable to repay the loan by 90 days after the last payment date.
The borrower is a store owner
and has to repay S$10,000 by
1 August. Every sale he makes
using his POS terminal repays
part of the loan.
At any time borrower is able
to repay the loan by sending
money to his credit account
via Wire Transfer or using
his Visa card at an ATM.
If, by 1 August, the borrower
still has part of his loan
outstanding (for example,
S$3,000), Wish Finance
starts counting 90 days.
Throughout these 90 days, sales
at the borrowerʼs POS terminal
count as normal loan
repayments.
If, after the 90 days, the borrower is still in arrears (for
example, S$1,000), Wish Finance understands this as loan
default and receives money from the insurance company -
specifically the last S$1,000, not the full S$10,000.
All the time we can see how this borrower is performing on his loan repayments and are showing the
same information to the borrower in his profile at our website and mobile application.
This will make Wish Finance fully transparent for government agencies, borrowers, partners, current
shareholders and potential investors.
LOAN DEFAULT INSURANCE
FOR EXAMPLE:
• Publish the whole history of issued loans (inсluding currently active, paid-
up and defaulted) on the Ethereum blockchain.
• Publish the whole history of currently active loansʼ performance and
transactions on the Tendermint blockchain.
• A block will never contain any personal or commercial data connected to
any borrower or borrowerʼs customers.
• A block will contain dates, payment methods, repayment amounts, and
the amount still outstanding.
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0405
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INVESTORS RELATIONS AND REPORTING
Investors relations and reporting
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Wish Finance is currently setting up their investor relations strategy, including:
Every holder of the Wish Finance token is able to convert it into company shares, in this way becoming a shareholder and also giving them access shareholder reports.
In addition to our reports for shareholders, Wish Finance will publish separate monthly reports for token holders to share our progress on milestone achievements according the roadmap we are sharing at ICO. These reports will include:
Reports content and structure are subject to changes. At any time current shareholders, token holders or interested investors are able to contact Wish Finance via [email protected]
• Monthly newsletter for every shareholder and potential investors.• Monthly report for every shareholder.• Bi-annual webcast with CEO for current shareholders.• Annual public press release on companyʼs performance.• Annual corporate audit report for every shareholder.
• Milestones achieved• Costs for time frame• Costs structure• Loan portfolio (after First loan milestone)• Portfolio performance (after First loan milestone)
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Costs structureCosts structure
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Wish Finance is the technology company and the biggest cost for us is salaries for developers. Our current monthly burn rate is S$100k in Singapore HQ including:
SALARIES
50%
PROFESSIONAL SERVICES
(ACCOUNTING, AUDIT, LAWYERS, ETC)
TECH COSTS
(SERVERS, LICENSES, ETC)
GROWTH (MARKETING,
SALES, EVENTS, ETC)
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5%
20%
10%
ADMINISTRATIVE COSTS
(RENTS, СONSUMABLES, ETC)
15%
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FINANCIAL ASSUMPTIONS
Financial assumptions
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On average Wish Finance features:
3% P.A. PAYMENTS TO ACQUIRING
PARTNER (POS DATA VENDOR
AND PROCESSING)
4% P.A. PAYMENTS
TO INSURANCE PARTNER
8% P.A. PAYMENTS
TO LIQUIDITY PROVIDER
9% P.A. AS
WISH FINANCE MARGIN
353%4%
8%
9%
INTEREST RATE OF 24%
PER ANNUM FOR BORROWERS
24%
Exact percentages may vary slightly on a partner-by-partner basis.
We intend to issue our first loan in December 2017. Within 6 months of this we plan to build an active loan portfolio of S$2,000,000 in Singapore alone, where the average active loan will be around S$5,000.
In January 2018 we intend to expand to Hong Kong and issue our first loan in February 2018.
In 6 months we expect to build an active loan portfolio of H$10,000,000 in Hong Kong alone, where the average active loan will be around H$30,000.
In March 2018 we plan to set up the Wish Finance Fund, a separate company to supply Wish Finance with lending liquidity, and collect US$20,000,000 at ICO.
By the end of 2018 we plan to have built an active loan portfolio of S$10,000,000 in Singapore and Hong Kong combined.
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ICO structure
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Wish Finance ICO details overview: 37Payout structureWhat does this token
represent?A smart contract lets token owners convert WISH tokens to company shares in correlation 1 to 1. Conversion could be made at any time at the initiative of token owner after KYC. Converted tokens intuitively will have its share of company profits as dividends.
WISH tokens executed by an Ethereum could be at any time converted to stocks of Wish Finance company registered in Singapore. One token could be converted to one stock.
Tokens not sold during the ICO will be burnt. Wish Finance will never trade or own its own tokens.
TOKEN NAME:
TOTAL SUPPLY: PRICE PER TOKEN:
ICO DURATION:
WISH
10,000,000 tokens US$1
October 2nd 2017 - October 30th 2017
OPERATIONS
IN SINGAPORE
OPERATIONS
IN BENELUX
OPERATIONS
IN HONG KONG
OPERATIONS
IN SCANDINAVIA
OPERATIONS
IN SOUTH KOREA
LENDING
PORTFOLIO
7% 5%
8% 10%
5% 65%
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CRYPTOGRAPHIC AUDIT
Cryptographic audit
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A standard practice of smart contract projects today is the Cryptographic Audit, a set of monitoring tools that allows any member of the public to easily validate the contract - in the case of Wish Finance the loans history, portfolio balances and performance. We are building our CA tools to maintain high security standards for money flow in blockchain projects. This is how we will achieve our transparency goals:
PROOF OF RESERVES We will give preference to exchanges that have implemented Proof of Solvency (PoS) measures; cold storage reserves can be audited, as is the case with TaaS, Poloniex and Kraken.
PORTFOLIO REPORTING Wish Finance will store information about the whole portfolio and its performance on the blockchain, with all personal data anonymised. Our transparency policy will help the borrowers, funds, current and potential investors in many ways, including the predictability and accountability of their investments.
REGULAR BLOCKCHAIN SNAPSHOTS To have proof that nobody mismanaged data between audits, a special smart contract will be developed to hold permanent daily snapshots of audit data. The contract will be supplied with a convenient contract explorer.
CHIEF BLOCKCHAIN OFFICER Wish Finance plans to have a new C-level position in the world of finances - Chief Blockchain Officer - who will be responsible for auditing and reporting our own use of blockchain technologies and push forward general financial technologies to clear and effective future.
01.
02.
03.
04.
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Escrow
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As a start-up founded with the goal of building a fair and transparent financial world, Wish Finance has decided to implement escrow to add an extra layer of protection for our ICO buyers.
An escrow provides a degree of assurance to ICO buyers that their funds will be used for the stated purposes. The escrow holds the funds until Wish Financeʼs development is complete and our promised product (SME loans) goes public - that is, when we start issuing loans to SMEs in Singapore and Hong Kong. Until then the funds collected at ICO will be disbursed to Wish Finance in small amounts every time we hit a new milestone according the roadmap presented in the whitepaper.
Escrow agents with digital keys (escrow signatories) needed to make a transfer from the ICO wallet to Wish Finance corporate banking account in Singapore will be:
• Eugene Green, Founder and CEO of Wish Finance• Alexander Rugaev, CEO of ICOPromo• <A third escrow agent will be added not later than one week before the
ICO launches>
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ROADMAPRoadmap
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43 February
October
July
April
October
July
November
ASEAN markets research
Server software, scoring and API layer ready
Whitepaper publication
Concept development
Initial coin offering
Company set up in Singapore
Connection to POS in Singapore and Hong Kong
2016
SeptemberMinimum Viable Product (MVP) ready
20162016
2017
December First loans issued in Singapore
2017
2016
2017
FebruaryFirst loans issued in Hong Kong
2018
2016
FebruaryPilot SME lending success with 0% default rate
2017
2017
LaterLending for online SMEs, Wish Fund, Wish Bank, Wish Insurance
2018-2019
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ICO Milestones
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• Finish Wish Finance lending software• Connect to acquiring partner, insurance partner and funding providers in
Singapore• Establish internal lending fund for Singapore• Start issuing loans for SMEs in the end of 2017
• Connect to acquiring partner, insurance partner and funding providers in Hong Kong
• Establish internal lending fund for Hong Kong• Start issuing loans for SMEs in February 2018
• Connect to acquiring partner, insurance partner and funding providers in South Korea
• Establish internal lending fund for South Korea• Start issuing loans for SMEs Late 2018
• Connect to acquiring partner, insurance partner and funding providers in Benelux (Belgium, the Netherlands, and Luxembourg)
• Establish internal lending fund for Benelux• Start issuing loans for SMEs Early 2019
• Connect to acquiring partner, insurance partner and funding providers in Scandinavia (Denmark, Norway, and Sweden)
• Establish internal lending fund for Scandinavia• Start issuing loans for SMEs Late 2019
• Start issuing loans for online merchants• Start issuing loans for online SMEs in 2018
IF THE ICO COLLECTS US$8,000,000 WE WILL ADDITIONALLY BE ABLE TO CREATE WISH BANK - BANK SPECIALISING IN SERVING SMES.
IF THE ICO COLLECTS US$10,000,000 WE WILL ADDITIONALLY BE ABLE TO CREATE WISH RELIANCE - B2B INSURANCE COMPANY FOR SMES.
45 WISH FINANCE’S MINIMUM GOAL FOR ICO IS US$1,000,000. WITH THIS AMOUNT WE WILL BE ABLE TO:
IF THE ICO COLLECTS US$2,000,000 WE WILL ADDITIONALLY BE ABLE TO:
IF THE ICO COLLECTS US$3,000,000 WE WILL ADDITIONALLY BE ABLE TO:
IF THE ICO COLLECTS US$4,000,000 WE WILL ADDITIONALLY BE ABLE TO:
IF THE ICO COLLECTS US$5,000,000 WE WILL ADDITIONALLY BE ABLE TO:
IF THE ICO COLLECTS US$6,000,000 WE WILL ADDITIONALLY BE ABLE TO:
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EXIT STRATEGIES FOR INVESTORS
Exit strategies for investors
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Every participant of Wish Finance’s ICO will be the owner of WISH tokens (as described above) and may choose any of these suggested exit strategies:
Convert WISH to Wish Finance shares and remain a strategic shareholder
Tokens can be converted at any time to shares in Wish Finance. Singapore has a clear and stable legal system, protecting every shareholder, including minority shareholders. All the ICO token holders will be shareholders of the Wishfin BVI Partners, a BVI entity who holds equity of the Singaporean company that owns all the software and intellectual property and that runs the alternative lending business. Staying a strategic shareholder means holding shares, receiving dividends and being able to sell shares when and if Wish Finance goes public.
Convert WISH to Wish Finance shares and sell shares
As above, token holders may convert their tokens to shares in Wish Finance. Before the company goes public, every shareholder is still able to sell their shares to Wish Finance’s management and/or other existing shareholders. This requires consent from the company’s board after KYC (Know Your Customer) processes with the buyer, to ensure compliance with AML legislation in Singapore.
Exchange WISH to other tokens
WISH tokens will be issued on the Ethereum platform and can be traded on supporting exchanges at any time.
Sell WISH back to Wish Finance
Starting in January 2019 Wish Finance will buy back WISH tokens every quarter at the current market price. Every token holder will be able to sell their tokens back to Wish Finance.
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