Honesty Bank is seeking early investors! Power up @honesty by 11/15/16. Secure a x100 Dividend Payout with convertible stock option! https://storage.googleapis.com/steemimgimgs/2016/10/23/YouTube2FSteemThumbnail282e72.pngBeta Logo

Introduction

Hello, My name is @cardiff. I'm a young anarchist with a Westminster College finance degree seeking to change the world with music. I've been mulling over Steem's financial instrumentation for a few weeks now & believe wholeheartedly that Steem has what it takes to be the NEXT GLOBAL CURRENCY. I might have been the first person to trade Steem Dollars (SD) for physical USD cash. That $420 transaction helped me see the viability of Steem Dollars as a method for trade & transactions. Today, I'm proud to present the missing key for Steem that will open the doors to mainstream adoption:

BANKING

Through a bank, Steem can offer competitive savings & CD rates worldwide with lower barriers to entry than every other crypto currency on the market. Clients only need to send USD from their checking account. Therefor, Honesty Bank will be the only [ store front / financial instrument ] that can convert global wealth into Steem without requiring consumer comprehension of crypto currency & blockchain technology. Here's how it works...

Business Model

Honesty Bank can provide 4-12% interest rates to the entire world by converting USD into Steem Dollars, Steem & Steem Power.

Savings Accounts

Honesty Bank's 'bread & butter' revenue stream lies in Savings Accounts which will offer 4-6% APR paid monthly to consumer's 3rd party checking accounts; $5 minimum balance required. Honesty Bank will NOT use fractional reserve lending. 100% of Savings Account holdings will be stored in Steem Dollars, remaining liquid & marginally profitable. Consumers can either compound interest payments, or receive payouts to their checking account every month. Once Steem Dollar holdings exceed Savings Account holdings (plus 50% extra to handle growth), Honesty Bank will either Power Up excess funds or diversify them. Initially, all consumer payouts convert back to USD until (1) consumers vocalize diversification via customer support, and (2) investors are satisfied with Steem's market cap valuation. Then, payout options will diversify.

CD's

Honesty Bank will offer Certificate of Deposits (CD's) with an interest rate of 8% in exchange for a 1 year lock on funds. CD's will secure long term liquidity for Honesty Bank, and additional revenue for consumers. If investors are bullish on Steem's rising market capitalization, CD's will convert to Steem & Steem Power. Honesty Bank will also offer a Compounding CD (CCD) that indefinitely accrues a 10-12% interest rate. In order for CCD's to be profitable, there must be a few conditions: (1) 18 months minimum lock on funds is required, (2) a 6-12 month "cool down" period must takes place after announcing withdrawal of funds, whereby both parties have initiation rights, and (3) investors are confident Steem Power will outperform the Steem Dollar.

First to Market

Listed below is are the necessities to realize Honesty Bank's Minimum Viable Product (MVP):

Incorporation & Licenses
Email Automation
Initial banking & support team
Advertising Content

Launching Honesty Bank's MVP is feasibly obtainable by January 1, 2017. However, it will require participation from investors to finalize the checklist above.

Marketing Campaign

Honesty Bank will initially run a digital promotion campaign (Instagram, Twitter & YouTube) to jumpstart Savings Accounts. Advertising will link to a landing page with an email sign up form (beta welcome email linked below): http://us11.campaign-archive1.com/?u=e1a4732513bf83b7fbbbd85e1&id=662e33760e&e= Note: missing from the demo email linked above is an explanatory video. 50,000 - 1,000,000 Steem Power will be spent catalyzing demand. This offer may be reserved to four (4) periods of expansion: (1) initial rollout of MVP, (2) initial rollout of CCD's, (3) announcement of payment diversification, and/or (4) incentivizing businesses & corporations to offer diversified payment options to their employees. Note: options three (3) & four (4) will be highly prioritized within countries experiencing hyperinflation. Within Honesty Bank's first year of operation, commission will be offered to affiliate marketers ranging between 0.2 - 2.0% interest (tiered based on performance) for 1 year on all new sign ups. A successful affiliate campaign can secure Honesty Bank as a mainstream phenomenon. Diversified currency payout may be upgraded to boost motivation.

Target Markets

Our primary target market will be social media consumers aged 18+ seeking safe, liquid & high yield savings. Social media will gateway Honesty Bank's mainstream market. They do not need to understand Steem to bank with Honesty Bank. Beautiful pictures & videos will line users walls & feeds with Honesty Bank's 4-8% interest rates. After social media marketing has reached saturation, Honesty Bank will redirect marketing efforts to passive affiliate marketing. Our secondary target market will be consumers with high FICO scores (great credit ratings) that seek to profit on savings rates outweighing lending rates. This may extend to young consumers with relatively weak FICO scores on the basis that they have access to subsidized loans. Our third target market will be small businesses & corporations seeking high savings rates. Once Honesty Bank diversifies payout methods, this target market will be incentivized to offer the Steem Dollar as an optional form of payment to their employees. Securing these three (3) markets will collectively bring Honesty Bank (1) high net worth clients, and (2) widespread brand recognition.

Risks

Honesty Bank's biggest risk is a long term weakening of the Steem Dollar against the US Dollar. A long term -2% decline in the Steem Dollar's strength will make Saving Accounts unprofitable. Currently, Honesty Bank will incur friction via exchange fees & market fluctuations between USD <> BTC <> SD. Direct transactions between USD <> SD is feasible, but not foreseeable without investor help securing infrastructure. Speculation in Steem's success depends largely on platform integration. Steem's financial instrumentation alone may not guarantee complete investor payout. The "pay for likes" or "like economy" ecosystem needs to thrive in order for Honesty Bank to capitalize on a long term withdrawal of Steem Power. Right now, Honesty Bank is merely the idea of one (1) young entrepreneur who doesn't have the resources to independently finance operational costs. There is currently no additional team in place to secure Honesty's future. Honesty Bank is largely dependent on investor contribution of both (1) finances & (2) human resources to realize long term success. If Honesty Bank is unable to secure at least 100,000 Steem, promotional campaigns & company expenses may encounter restructuring or time delays. If automation isn't perfected, errors can result in major losses. Powering Up CD's during market declines may significantly absorb liquidation. Market downturns can force 50+% of CD funds to be locked into the hard asset during time of withdrawal. If liquidation rates drop too low, with too few Steem Power to guarantee withdrawals, panic can spark a bank run. The legalities of incorporating a worldwide bank is complex. Honesty Bank is at risk of stagnation if (1) investors do not bring legal experience to the table, and (2) weak fundraising cannot compensate for legal startup costs.

Benefits

Luckily, this niche banking opportunity is currently only applicable to Steem's 3-tiers of currency. If CD's are Powered Up while Steem experiences exponential growth, Honesty Bank will realize immense profits. Powering Down will be extremely lucrative during this time, as a few weeks can generate 100% CD liquidity! Steem is relatively young & cheap, with immense potential to seize numerous financial & social markets who's collective market caps vastly exceed $1 Trillion. Honesty Bank's primary holdings will be diversified throughout Steem. Therefor, Honesty Bank will realize immense gains from the currency's success. There are no other banks in this market. Honesty Bank has the opportunity to wholly dominate the market. If the first round of fundraising locks a large portion of liquid Steem, Honesty Bank will secure a long future of dominant currency holdings. These savings & investments are all protected from economic collapse & fiat hyperinflation. The Steem Dollar has a "loose peg" to the USD which can retain its strength as/if the USD deteriorates over time. Honesty Bank can thrive during any economic state, but has more potential to thrive countercyclical to the US economy. Honesty Bank is expecting to be operational as early as January 1st, 2017.

Investors

The first Investor's Meeting is November 11th in Amsterdam. Honesty Bank will start operating November 12th to incorporate by January 1st. Dividends may be converted into stock after 3 years. Latest Payment for x100 Dividend Payout is December 25th, 2020. For security reasons, Honesty Bank is only accepting Steem Power: (1) Power Up Steem, (2) select "Advanced" & (3) send funds to @honesty. Find more detail about Dividend Payouts, Investors & Financial Sheets below:https://docs.google.com/spreadsheets/d/1qjb_K-f1M4brYcOZJvDPJrswSAG3jWR679mtcnXom3g/edit?usp=sharing Investors will be invited to the private channel: https://www.steemit.chat/group/honestybank Here we will divide & conquer before & after #steemfest. Invitations are given solely at the discretion of @cardiff, who can be reached here: https://steemit.chat/direct/cardiff

Investment Priorities

Once Honesty Bank's fundraising is complete, Powering Down will initiate for the following funding purposes:

Incorporation
Infrastructure
Marketing Campaign
Liquidity maintenance

Exit Strategy

Payout options will inevitably broaden due to market awareness. This will likely force Honesty Bank's "bread & butter" revenue stream to decline. Marginal profits will decrease as competitors absorb economic profits. Honesty Bank has a few exit strategy options:

Expand lending operations (finance Steem platforms, secured loans, etc).
Liquidate assets & payout shareholders.
Initial Public Offering (IPO).
Diversify revenue streams (beyond lending).

It's essential for Honesty Bank to be operational as quickly as possible. Maximizing early on Steem Power during Steem's exponential rise(s) can generate early dividends to investors. Having sizable market share before worldwide fiat hyperinflation can secure Honesty Bank's brand recognition worldwide. Honesty bank will be the anomaly when it comes to banks capable of protecting Account Holders & prospering during economic downturn.

Conclusion

I, @cardiff am absolutely in love with Steem & its brilliance; passionately obsessed with its potential. I know the power of intrinsic value & financial instruments. Steem has everything necessary to gain love & acceptance the world over! My girlfriend & I purchased 1 way tickets to Amsterdam to be at #steemfest! I want to assure you that - to my knowledge - it's impossible to hack & steal Steem Power funds unless it occurs for 2 years or longer. The initial financials are made, the hard asset (Steem Power) crowdfunding reassures long term interests, and the steemit channel will secure communication & momentum between investors. I cannot steer head this bank by myself. Together, I know WE can build something great. Our goal is to make Honesty Bank the poster child for Steem. Our aim is to provide fair & competitive banking opportunities. Then, we wish to familiarize the public about the financial & economic benefits of Steem. Honesty Bank will likely be - indirectly - the first point of contact between the majority of consumers & Steem. Long term success requires maximizing Steem (and Steem Dollar) market cap valuations. Therefor, Honesty Bank will funnel consumers towards utilizing Steem's expanding platforms. WARNING: FOR SERIOUS INVESTORS AT THEIR OWN RISK! Cheers! To Steem's 2nd exponential :D