The most persistent challenge in consumer finance is the compilation and use of personal data. A simple immutable record of consumer financial histories that provides a touchless self-sovereign experience for the user; a trustless, accurate, and warranted representation of data for an industry that does not require the multiple sharing of Personal Identifiable Information (PII) resulting in reduced risk of reputational and financial harm to the consumer, industry, and the national economy.
Current Status
In development with the MVP release scheduled for end of Q1, 2023.
Market
The consumer market is primarily millennials, who prefer online to brick-and-mortar solutions. Millennials (defined as between ages 27 to 41 in 2022) are projected to number 75.3 million, surpassing the projected 74.9 million Boomers (ages 58 to 76). The Gen X population (ages 49 to 64 in 2022) is projected to outnumber the Boomers by 2028. The consumer SAM is forecast to be +- 5.4 million opportunities or 7% of TAM. Of those, we anticipate a core adopter group of +- 2.0 million users or 2.6% of the target market.
The Mortgage Service providers TAM includes 27,131 mortgage companies with 581,094 MLO’s (Mortgage Loan Originators) in 2021. 2019 aggregated origination volumes were 8.1 million originations, each consumer a potential user of IDFI. The SAM is anticipated to be approximately 10% of the marketplace or 2,713 companies with 58,109 MLOs.
Problem or Opportunity
For consumers, providing self-sovereign control over their Personal Identifiable Information (PII) to easily request anonymous competitive offers for a mortgage service, and know with certainty that they have received the best rates and terms. For mortgage lenders increasing the value of conversion with the secure knowledge that they are the only lender transacting with the consumer. For both parties lowering the costs of getting a mortgage.
Solution (product or service)
The use of rwANFT to exchange complex data and documents for a financial service, like a mortgage. Application spans the collection of data and documents, rwANFT creation, open marketplace for bidding for transactional bidding and acceptance of best terms, immediate secure exchange of curated data and documents for a financial service.
Competitors
Primary competitors are what are called 'rate tables' such as BankRate, Lending Tree, LendGo and others. Consumer inputs their personal data that is sold and resold to competing lenders who telemarket the consumer to effect a conversion. It is messy. painful for the consumer, and very expensive for the lender.
Advantages or differentiators
1) Self-curated and self-sovereign consumer data
2) Minting of rwANFT that includes all the consumer data and documents required to obtain a mortgage service
3) Creation of a mortgage scenario by the consumer to place for bid on the open mortgage marketplace
4) Acceptance of the best bid for consumers needs, and minting of the governing smart contract for the exchange of data and documents for the mortgage.
5) One-on-one exchange of data to the lender in exchange for the fulfillment of the requested mortgage service. No telemarketing, or abusive marketing practices.
All current services are industry controlled with the sharing of personal information to multiple parties with massive amounts of abuse marketing calls, texts and emails to convert the consumer.
Finance
Margins are anticipated to be up to 80% of gross revenues. Current projected annual gross revenues suggest the following:
- Year 1: ($1,621967)
- Year 2: ($4,809,996)
- Year 3: ($4,072,133)
- Year 4: $36,172,216
- Year 5: $110,474,857
Revenues are generated through fees charged to lenders for onboarding, monthly subscriptions, and transaction (lead) fees. The largest source is the lead generation fees, which will average around $1,000 per lead.
Business model
IDFI ensures Consumer users the complete ownership of personal data employing a custom ERC-721 smart contracts ecosystem on an Ethereum-based, layer 2 blockchain.
Consumer users will mint their unique utility NFT Financial DID’s and data/document histories for open bid on IDFI’s marketplace to seek competitive mortgage services.
C2B - Consumers are sourced via online methods (SEO/SEM/Retargeting etc.) and Realtor referrals for the acquisition of consumers. Industry relationships for the recruitment of mortgage lender users. Fees paid by the mortgage lenders, including onboarding, monthly subscription and per-transaction fees. $6B annual spend by industry.
Money will be spent on
Continued development, compliance, legal, and building lead funnels.
Offer for investor
Pre market launch, $150K for 15% ownership. Post market launch $1.0M for 15% ownership. Open to structures that are mutually beneficial.
1) New technologies. The adoption of rwANFT's is not a proven technology that will be embraced by consumers and lenders.
2) Economic forces. Currently the mortgage market is undergoing a significant contraction. The industry is notoriously volatile and it is deeply affected by governmental monetary policy.
3) Entrenched competitors. There are well-established lead funnels that exist with the capacity to emulate and copy our offerings.
4) It simply does not work as anticipated.
Incubation/Acceleration programs accomplishment
Mentor for Venturecapital, having mentored over 25 startups.
Won the competition and other awards
Top 100 in the world award from Red Herring. Top 25 mortgage professional in the USA.
