Banking Ideas from an Entreprenuer to A Banker

A bank for entrepreneurs for entrepreneur is every business person’s dream. I looked on how this might become a reality for all those start-up. It is not a dream but bankers need to think like entrepreneurs and move to harness available technological advances. The challenge that the banker has always had are identification and authentication of borrower, security of money advanced, viability of the business and risks associated to a business venture. My approach is to unpack each of the challenges and offer solutions of how to overcome them.

IDENTIFICATION AND AUTHENTICATION OF CLIENT

The identification and authentication of client is now easier thanks to an explosion in social media and amazing free web tools. With the advent of mobile technology mobile devices - and their applications - are being used widely in our economies to deliver information, gather and analyze data.

Banks can match and identify suppliers and control who gets paid by the entrepreneur and how much has been paid and for what service.

The solution is for banks to go mobile, that is adapting mobile technology for identification and authentication of potential entrepreneurs.

SECURITY OF MONEY ADVANCED

Mobile technology becomes an even more valuable asset in terms of security. This technology allows the bank to control disbursement, use of money in by the client and even have a say in payments to suppliers. The fact is mobile technology and the internet can actually change the way banks interact with the entrepreneur. Mobile technology will allow the banks and entrepreneur to stay connected therefore allow close monitoring of the monies advanced. In other words, mobile wallets can be controlled by both the banks and entrepreneurs.

The solution is to explore the mobile wallet options for disbursement of funds by both the banks and entrepreneurs.

VIABILITY OF PROJECT AND SCALABILITY

Banks should draw bankable proposals and let the entrepreneur  concentrate on selling his idea to the bankers. I strongly believe that banks are in a better position to give input to an entrepreneur’s proposal as they employ accountants, economists and other professional who understand finance better than the entrepreneur.

When banks match the entrepreneur’s needs by clearly defining what they expect from them and create an environment that enables business to grow. Proper financing of an entrepreneur’s idea will result in measurable scalability of any business.

My solution is let the bank draw the proposal and to let the entrepreneur sell his idea to the bank.

RISKS ASSOCIATED WITH THE PROJECT

The entrepreneur would like the bank insure him or her venture. The bank should provide an insurance policy that covers all risks associated with his or her venture. I believe government should also act as a guarantor to new businesses to a certain extend.

I know the greatest risk to an entrepreneur is failure. Failure to start a business cannot be mitigated- it remains in you forever