YYOB(TM) a concept note
YYOB: Empowering Businesses to Be Their Own Bank in the AI/Web3 Era
"YYOB – You Are Your Own Bank," is a concept coined by Nirav Kanakia, that delivers significant efficiencies, and unlocks new value and simplification in the world of global banking. While YYOB was thought for global banking, same can also be utilized for domestic banking as well., YYOB is not just a product or a concept; it's a paradigm shift, reimagining banking from first principles to empower every business and person to manage their money with unprecedented control, efficiency, and intelligence.
The Imperative for Change: Beyond Traditional Banking
Traditional banking systems, often characterized by outdated technologies and processes from the 1990s, are plagued by inefficiencies and "rent-seeking" practices where customer inefficiencies become bank revenue. These systems impose costs that are hard to avoid, especially in cross-border operations. Businesses are often forced to pay banks just to store their money, and cross-border payments are slow, expensive, and lack transparency.
Safeguarding Cash: Storing digital money and protecting it from fraud and risks. Digital money is primarily stored in the bank's centralized computers or servers.
Creating Compliant Bridges for Money Movement: Adhering to multiple laws such as KYC (Know Your Customer), AML (Anti-Money Laundering), CTF (Combating the Financing of Terrorism), and SAR (Suspicious Activity Report) to move money between accounts, often through a series of digital and non-digitized process checks. Banks act as guardians of the financial system's integrity, applying strict compliance standards.
Lending Money for Yield Generation: Engaging in highly mathematical activities to predict and manage risks, including market risk, credit risk, interest rate risk, and geographical risk, to generate yield on safe cash.
So We need YYOB(TM)
YYOB goes back to these basics, questioning if traditional banks are still necessary for these functions, and proposes that software can perform the work of a bank – faster, cheaper, and more cost-efficiently.
Banking isn’t a person/group of person —it’s a protocol, a set of decisions, and a risk engine. All of which are better handled by machines that don’t sleep, don’t err, and don’t forget.
YYOB: A Well-Thought-Out Solution Built on Key Pillars
YYOB can be a decentralized application (dApp) built on blockchain principles or based on agents ai can be designed to be a "personal automated banker" for individuals and entities. It draws inspiration from two key ideas: Web3, which champions data ownership, and the "In-House Bank" (IHB) concept, traditionally deployed by large multinational corporations to optimize working capital and improve efficiency. While IHBs historically take years to deploy and significant investment, YYOB aims to deliver an "Inhouse Bank in a box" as a plug-and-play SaaS solution
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It can be built upon the following pillars:
Web3 & Blockchain Foundation: YYOB is a dApp that stores balances and value on decentralized chains. Leveraging Web3 principles, it enables 24/7, fast, and cheap cross-border payments through a decentralized bank network. This structure ensures user data ownership, privacy, and an immutable, transparent ledger. Blockchain, as a trusted immutable ledger, is ideal for delivering instant, transparent information.
AI Banker – Banqer (codenamed Rishika): Your Robo-Helper: At the heart of YYOB is an AI Banker, envisioned as "your own robot banker" and "a treasury's robo helper". This AI is informed about all regulations for cash management, manages access to bank accounts, monitors transactions for anomalies, and performs critical tasks such as payment operations, payment compliance, and balances and transactions monitoring. The long-term vision is that AI will fundamentally become the bank of the future, with the view that "In 2030 AI will be your bank". This AI, named Rishika, aims to be "an AI with a degree in banking with blockchain as its system of record and zero tolerance for inefficiencies".
Modular Solution modled after comprehensive Treasury Management and in-house banking : YYOB is designed with a modular architecture, with each module functioning as a smart contract or sub-dApp or a series of agents to optimize cash management, improve yield, and reduce risk. Key modules include:
The Value Proposition of YYOB
YYOB will be engineered to deliver substantial benefits :
Significant Working Capital Efficiency: YYOB is will deliver 50% more efficient working capital, moving towards a "Just-In-Time Funding (JITF)" model when connected within a network of other YYOBs. This directly translates to capital liberation and improved financial agility.
Massive Cost Reduction: By avoiding "rent-seeking" banks and optimizing FX flows, YYOB dramatically reduces costs associated with traditional banking. It offers fast, cheap, 24/7 cross-border payments.
Regulatory Compliance as a Core Competency: "Regulatory compliance is enshrined into Solutin’ss DNA". Smart contracts and DAO-based solutions on regulations codified in Oracles enable faster, cheaper, and 24/7 compliance models, which dramatically reduces costs and ensures legal adherence. YYOB will allow payments and receipts based on owner’s needs following regulatory compliance.
Superior User Experience: Recognizing the "pain points" of traditional banking, YYOB focuses on a pain-free onboarding experience through product-led growth, eKYC, and quick account opening, empowering customers with data ownership. UX is considered "much more than UI" .
Future-Proof and Scalable Ecosystem: YYOB is built as a modular, interconnected ecosystem. Its foundation in Web3 and AI not only addresses current inefficiencies but also positions it at the forefront of the future of banking, with the bold vision that "In 2030 AI will be your bank".
In conclusion, YYOB represents a comprehensive, well-articulated strategy to revolutionize corporate treasury. By synergizing the proven efficiencies of the In-House Bank model with the transformative power of Web3 and Artificial Intelligence, YYOB offers a robust, scalable, and future-proof solution designed to empower businesses to truly be their own bank – leading to significant working capital optimization, cost savings, and unparalleled control. This is a solution built for the future, ready to disrupt the financial landscape.