note, remarks, term and conditions ...
Ybanking is an acquisition channel for banks based on social networking.
Customers connect on the Ybanking platform and when using together a bank partnering with Ybanking, they can get benefits from that.
Customers are paid for just using the same bank as their friends and relatives.
Benefits are calculated based on margins of loans and deposits of connected peers. In the case balances of connected products match, customers pay only for the cost of credit risk, the rest of the margin is split between them as benefits. For balances not covered in connection, this excess has a standard rate applied. Benefits are calculated monthly based on current balances and connections.
Banks earn margin on not covered balances, on margin on the cost of risk, on fees and cross-selling.
Benefits can be very high, for example 4% on a standard term deposit, but only when consumed by a loan with eg. 8% rate. In this schema benefits are never higher than bank’s revenues.
To connect customers have to invite one another to Ybanking and then to the particular bank. It is based on virality and banks have no cost of acquisition. Moreover, customers should be more loyal due to the network effect.
Ybanking exchanges one-shot cost of acquisition with long-term and uncertain return into free viral growth of profitable and loyal customers.