Forty Seven Bank ICO overview
Innovative Bank-as-a-Service platform for fintech developers
About Forty Seven Bank
Forty Seven Bank is financial technology start-up aimed at creating PSD2 compliant Bank as a Service platform for fintech developers with open and flexible API. We are going to reduce barriers to entry into European banking sector for developers with small and medium capital. Developers will be able to create their own fintech applications that will operate under the roof of Forty Seven Bank.
Lots of potential, also challenges
Forty Seven Bank ICO wants to introduce a way for people to access all their fiat and non-fiat assets through one easy system, and allow them to make purchases, transfers, trades, investments and take loans in any currency. The project also aims to lower the barrier of entry to the fintech field, by giving access to an open Bank-as-a-Service development platform with which developers can create and upload their own applications.
The comprehensive White paper and the large team behind the project are commendable. The finances & business outline provided by the team create a believable image of the projects development.
This is a fairly ambitious project with certain natural risks attached to it. Development and acquiring of necessary licenses will take time and so the real potential of the project will only become clear with time. The high token price is also something to be considered before investing. That is why the ICO could be most suitable for long-term investors and fintech developers looking to use the API.
Token: FSBT (0.0047 ETH)
Maximum amount of tokens: 5 555 555 FSBT
Distribution: 90 % to contributors, 5 % to founders and 5 % to Bounty program
1st Round: Nov 16 – Dec 16, 2017
2nd Round: Dec 17, 2017 – March 31, 2018
Soft Cap: 3 600 ETH
Hard Cap: 18 077 ETH
Minimum & Maximum investment: None
Bonus program: 1st Round: 30 %, 2nd Round: 20 %
Description & Vision
Forty Seven Bank aims to become a leader in digital banking, bringing together fiat and cryptocurrency on one platform. This hybrid bank will offer various banking services for users of both types of currency, all in compliance with regulations and financial authorities.
Users will be able to access and manage all their bank accounts and cryptocurrency wallets, and convert fiat intro crypto and vice versa, all under a single API. This system would result in less time spent in transfers and lower fees. User will also be able to invest in projects or gather funding for their own through the platform. Forty Seven Bank wants to become a place where one can manage and analyze their finances in totality.
In addition, a main feature of Forty Seven Bank is the ability for developers to use the API and upload their fintech applications using a profit-sharing model. Partners can even set up their own White label financial services on the platform. This bank-as-a-service (BaaS) system will help to lower the barrier of entry into the financial market.
The platform will also provide other unique financial services for businesses and people, ranging from crypto bonds, futures and options to ICO staging.
The goals of the project are quite lofty, but understandable. The world of finance and banking keeps evolving at an ever faster rate due to digitalization. More and more people prefer to manage their wealth online via apps, while traditional “offline” services are losing customers. Cryptocurrency, while a rising market, is still somewhat hard to use and trade. Currently there isn’t a single entity or place where both crypto and fiat assets can be managed together. Bringing these currencies together under one easy-to-use platform would certainly be useful.
The challenge for Forty Seven Bank will be to create a platform/service effective and attractive enough for businesses and developers to take interest. For the system to work, they will need to attract enough customer interest to build a base from. This will depend largely on the practicality and quality of the Banks basic products, like the Multi Bank Account Management service and the developer tools.
Products & Services Detail
Multi-Asset Account — manage, convert and use fiat and cryptocurrencies
Withdrawals, Transfers and Payments, Insurance, Loans and deposits, Investing and Brokerage — all in any chose currency
Smart ATMs allow cash withdrawal, payments and transfers, insurance
ICO service — set up your own ICO via the platform
White label — Set up own banking services with the API
Large scale payouts and payment processing in fiat and crypto.
Persons & Businesses
Smart Support — dispute resolution via machine learning techniques
Invoicing — Create, send and follow invoices whether you’re a freelancer or part of a larger company.
Multi Bank Account Management —manage accounts on different banks and/or wallets in the platform
Biometric POS terminals — Physical terminals that enable you to make payments etc. with a fingerprint, that is tied to your account/card.
Accept payments in fiat and crypto currencies
API — Develop banking and financial services applications and upload them to the App marketplace
BaaS — Bank as a Service; create a White label bank or financial service using existing infrastructure
Scoring, KYC and Compliance Services
Data Analytics and Prediction Models
Trading algorithms and hedging
Fiat and cryptocurrency derivatives
Trader Account Management — Connect and manage multiple trading accounts in one app
Access partner exchanges and Forty Seven Bank Exchange
The product & service range of the project is quite comprehensive, containing all the essentials of a bank account/wallet system with additional features on top. If working as intended, Forty Seven Banks Multi-Asset capabilities would be a real asset to anyone who has to deal with multiple bank accounts, cryptocurrency wallets and etc. Cryptocurrency based lending could also prove to be an interesting concept for many people.
Besides the use for individuals and investors, the ability for developers to create new financial applications is full of potential. Allowing fintech companies to more easily incorporate banking and cryptocurrency features to their systems and develop new tools is something needed in the marketplace.
The biggest challenge in delivering these features will be in obtaining all the necessary licenses and rights to legally work in this field and making the platform truly intuitive and functional for everyday users and developers alike.
Token uses & benefits
FSBT is an Ethereum-based ERC-20 standard token. https://github.com/Fortyseven/ToneDef
Token distribution will be as follows; 90 % to contributors, 5 % to founders and 5 % to the Bounty program.
Although Forty Seven Bank will eventually open services to all people, FSBT holders will become the very first clients of Forty Seven Bank. FSBT will be integral to the platform and owning it will allow developers to use the API and upload their own apps to the platform.
In addition to some direct on-platform uses, holders of FSBT will gain special FSBL tokens through the loyalty program; the bank will invest 20 % of previous year’s net profits (1 EUR = 1 FSBL) into the program, distributing FSBL tokens among FSBT holders. These tokens can be used to buy services and products from the official store and can also be traded for other currencies. Users will gain even more FSBL tokens through the use of Forty Seven Banks debit or credit card.
FSBT holders will be the prioritized in the loyalty program
Holders will gain FSBL-loyalty tokens to use in Forty Seven Bank shop or to trade
Holders will be the first to access services of the bank
No fee for using Multi-Asset Account
Most common mobile, online banking products for free
Developers need FSBT to create applications
There are also special benefits for ICO participants based on investment amount:
0.0 – 1 ETH: Free multi-currency account: IBAN (EUR, USD, etc.), crypto wallets (BTC, ETH, etc.), investments
1 – 5 ETH: Free multi-currency account, investments, free Visa Classic credit card
5 – 10 ETH: Free multi-currency account, investments, free Visa Platinum credit card and a 25% discount on personal and travel insurance for the payer and two of their family members for the first two years
10 – 50 ETH: Free multi-currency account, investments, Free Visa Platinum credit card and a 30% discount on personal and travel insurance for the payer and two of their family members for the first three years. No fee for cash withdrawals in any ATM in the world in the first year
50 – 100 ETH: Free multi-currency account, investments, Free Visa Platinum credit card, 50% discount on personal and travel insurance for the payer and two of their family members for the first five years. No fee for cash withdrawals in any ATM in the world during the first three years. Special terms for trading activities
More than 100 ETH: Free multi-currency account, investments. Free Visa Platinum credit card, 50% discount on personal and travel insurance for the payer and two of their family members for the first ten years. No fee for cash withdrawals in any ATM in the world during the first five years. Special terms for trading activities. No fees and charges for the use of any products and services of the platform on a regular basis (excluding loans).
The way that the FSTB token is setup and how holding it will give benefits suggests that Forty Seven Bank wants to primarily gather funding and retain those initial investors as long as possible. Since the value of the token is essentially tied to the company’s yearly profit, investors are encouraged to be on board for the long-term. Considering the practical use of FSTB for uploading apps and somewhat high token price, it’s safe to say that the project wants to attract as many fintech developers to their platform as possible.
This does however create a challenge for company; the value of the token is tied to the product, which as or right now does not exist. Forty Seven Bank will be under pressure to follow their roadmap and deliver products on time to keep the faith in the project going.
Forty Seven Bank will provide multiple different services to different kinds of clients. The main revenue streams for the company will be the fees and commissions from providing banking and cryptocurrency services, the interest from loans and income from their trading platform. The commissions will make up roughly 70% of the operational income:
Most of the operational costs for the project will relate to administrative and commission expenses. Marketing will naturally take more resources at the very start to raise interest in the project. The loyalty system will kick in after the first year, costing 20 % of the previous years’ profit.
The teams outlines for the company’s finances are largely realistic, but ultimately speculative. Much of the projects future progress will depend on the funds raised and continuing interest in the service. If the project doesn’t attract enough developers and hit its user goal within the first year, this will probably drive up the need for marketing. These will also depend on the team’s ability to deliver their promises on time.
Forty Seven Bank has an executive team of 12 people and 12 advisors. The team members include representatives from several different fields, including financial tech, investment, software development, marketing and legislation. The team leaders are CEO Alexander Malin (fintech background), COO Igor Astapchiks (finance, IT, cryptocurrencies), CMO Vladimir Tomko (marketing, IT), CFO Mihails Skoblovs (finance and business development) and Head of Trading Aristoteles V. Daza (trading, investments).
Forty Seven Bank boasts a fairly large team of people with different areas of expertise. The team members have traceable histories, legitimate professional profiles and previous experience in fintech, trading, cryptocurrencies and software development. From this perspective, they seem to have the know-how to deliver on their service.
The company is however aiming to become a legitimate banking institution in the future and the team seems to have relatively little actual history in the banking scene. This can be a problem, considering the scope of their goals and the challenges posed by the established institutions. This problem could potentially be circumvented by growing the team in the future.
Roadmap & Product rollout
Key phases of the project are featured in the above images. Upon reaching their hard cap the company plans to roll tokens out to exchanges in Q1 of 2018 and launching their full banking services by Q4 of 2019. This illustrates the length and long-term nature of the project. The banks goal is to loan roughly 80m Euros in the first year of trading and to attract 65m Euro in customer deposits by 2022.
The roadmap seems realistic enough in terms of time considering the scope of the project. It’s going to take at least a few years for the service to start running in its entirety. One potential roadblock is obtaining the banking license; it is an absolute requirement for the company to proceed as planned. Any potential delay in this will delay the entire project. The team has reserved most of 2019 for this, but it order for them to get the license by the given time, all of their documentation and processes need to be in order by the submission time.
Social & Marketing
Forty Seven Bank has active profiles on all major relevant medias:
Forty Seven Bank has also been featured on sites like Yahoo!, Coinspeak, Cointelegraph and more.
Visibility and transparency is key for any legitimate ICO and Forty Seven Bank fortunately has fairly active profiles on all major related sites.
The Forty Seven Bank project is an ambitious undertaking, taking on the very established field of banking and finance and trying to develop something innovative. The service the company would offer upon completion of goals would prove extremely useful, with the seamless integration of fiat and non-fiat currency accounts. Furthermore, the open API would lower the field of entry to the finance and banking scene, encouraging competition and evolution of the market.
The ICO is not without its risks however. The banking scene is heavily regulated and needs to follow strict guidelines. The team needs to constantly keep updated on current and upcoming industry standards and requirements. Acquisition of the banking license is absolutely integral; the company will not be able to provide its service without one. Any delays on this will push back development considerably.
There is also the question of competition from established institutions and other ICOs. Somewhat similar projects are also being funded as we speak and traditional banks are looking into adapting to the changing marketplace. Acquiring a healthy amount of users within the first years will be crucial for the platforms future success.
Forty Seven is a fairly ambitious project with certain natural risks attached to it. The platform and its services are definitely interesting. The project needs time to get going however and the high token price is something to be considered before investing. That is why the ICO could be most suitable for long-term investors and fintech developers looking to use the API.
+ Product answers existing needs
+ Logical use of blockchain
+ Good documentation and communication
+ Team has proven fintech track record
+ Healthy token distribution and amount sold at ICO
– Regulatory, legislative challenges
– Competitive marketplace
– Short term investment potential uncertain
– FSBL value depends on purchasable products
For more information about the ICO, please visit the following links:
The views expressed in this document are the personal assessments of ICO Drip, based on information from the project website, documentation and communication with the team. This review is for informational purposes only and should not be considered financial advice. Do your own research.
We hope the review will provide insight and transparency to the field of ICOs and be a small step in combatting dishonest practices.
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|Token Type||ERC-20 compliant|
|Token Price||1 FSBT = 0.0047 ETH|
|Token available for sale||5 555 555 FSBT|
|Token supply||5 555 555 FSBT|
90% to token sale
|Soft cap||3600 ETH|
|Hard cap||36000 ETH|
30%/20%/0% during presale