Report: Credit Unions, Trade Finance, Mobile Data — articulate Harmony’s market-readiness | Foster School of Business (University of Washington)

Nikolaos Kostopoulos
Nov 23 · 5 min read

According to a team of MBA Students at Foster School of Business, UW comprising of Chelsea Baum, Abhro Pal, and Shobhit Gupta — these three industries care about using blockchain to decrease the cost of each transaction and increase the immutability/security of each transaction.

Researchers have conducted a three-month-long research performing competitive analysis to understand the blockchain infrastructure providers in the market. The MBA Researchers have conducted customer interviews to assess market opportunity and articulate market-readiness for Harmony’s platform.

Credit Unions, Trade Finance, Mobile Data

Shobit Gupta explaining in his LinkedIn update that the reason the research team has prioritized these industries is either due to the high volume of transactions or high value per transaction. Blockchain will bring efficiency in its market economy leading to more value creation for customers and more capitalization for the incumbents.

a) Credit Unions — Credits Unions(CU) have $971.9B in outstanding loans today growing at 9.9% YoY with a delinquency rate of 2.54%. This is 1% more than 1.34% for loan assets created in commercial banks. Over 5000+ CU’s impact 112.6M citizens across the US without a central process to establish trust between the lender and buyer. By helping companies such as CULedger which plans to bring these CUs on a single public blockchain, US citizens will get loans faster and at lower interest rates kickstarting a wave of prosperity for the average American.

How Harmony fits in the industry:

“The biggest problem that BECU will look to solve today is increased transaction flow. We will adopt blockchain if you can prove that blockchain can indeed solve this problem… We will not be building blockchain technology ourselves. We will partner with a new startup (doesn’t have to be established platforms like Ethereum, Quorum etc.) as long as they can provide a Proof of Work.”

BECU Credit Union is a member-owned, not-for-profit financial cooperative serving more than 1 million members with a full range of services

b) Trade Finance — A permit of shipping a cargo of soybeans takes 10 days to process due to manual paperwork, multiple port authorities involved, and inefficient wire transfer mechanism between banks keeping a recording of the transaction. Cargill performed the same transaction in 24 hours using blockchain. Companies such as Maersk have already started tracking their consignments on blockchain as well as trade banks like Bladex which have invested in building a public ledger like Marco Polo for trade finance. Trade Finance is a $70B industry worldwide.

How Harmony fits in the industry:

“Trade finance is the most prominent use for blockchain” and trade banks can be the leader as it is a technical solution targeting legacy issues. Implementation of blockchain reduces fraud risk and compliance cost with convergence of data from every part of the supply chain.

Bladex is a Latin American Trade Bank granting financing to medium and large-sized corporations to support their business operations.

c) Mobile Data — DENT Wireless, a Peer to Peer mobile data transfer company witnessed 4.5M new customers trading data across 155 carries spread over 30 countries. All this in 365 days. It helps Telecom companies such as Vodafone, Verizon to put their unused bandwidth back in the market(30% of total bandwidth) which amounts to $70B in revenues as well as allows the companies to increase the data consumption for the end-customer. An increase in data consumption leads to an increase in consumption of Over The Top(OTT) services such as advertisements, content, and commerce($460 CLV). For the end-customer, it means more investment by companies to provide faster internet all over the globe.

The complete thesis on the topic is a part of GTM Strategy for Harmony, presented at our premises in Mountain View, California on 06/01 as a part of a study conducted under the guidance of Prof. Jarrad Harford, Finance Dept, Foster School of Business.

How Harmony fits in the industry:

When considering a blockchain partner AdEx considers the following five characteristics: Scalability, Growth Potential, Adoption, Popularity, and Interoperability They are currently working around TPS limitations with the use of OUTPACE and Layer 2 solutions.

AdEx is a trust-minimized protocol for digital advertising aiming at disrupting the existing online advertising landscape and address its significant problems: advertising fraud, privacy and consent to receiving sponsored messages, etc.

What Next?

Voice of the Customer Financial Services

Harmony vs Competitors

A quick link to view the presentation is here.

About the Research Team:

Please reach out to the research team for references/questions/queries or more such independent studies at sgg7@uw.edu.

Logo Property Disclaimer:

All third party trademarks (including logos and icons) referenced by the report remain the property of their respective owners. Use of them does not imply any affiliation with or endorsement by them.

NON-AFFILIATION DISCLAIMER. This report is not endorsed by, directly affiliated with, maintained, authorized, or sponsored by the respective academic institutions. All research findings are validated by the research team and supervised by academicians which are cited in the report.

Harmony

To scale trust for billions of people and create a radically fair economy

Nikolaos Kostopoulos

Written by

Advising governments & interest groups on cryptocurrency & FinTech regulation in the European Union.

Harmony

Harmony

To scale trust for billions of people and create a radically fair economy

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