The Problem

I. Traditional Banking's Outdated Infrastructure II. Banking the Unbanked: Limited Access to Financial Services III. Problems with Cards: High Fees and Security Risks IV. Cross-Border Transactions: Expensive and Slow

I. Traditional Banking's Outdated Infrastructure

The traditional banking system operates on aging infrastructure that wasn't designed for today's digital economy. When sending money through banks, transactions move through a complex web of intermediaries, with each step adding time and potential points of failure. A simple transfer between two U.S. banks can take 3-5 business days, passing through multiple verification steps, clearing houses, and the Federal Reserve system. Behind the scenes, banks leverage customer deposits for lending and investments, but this process lacks transparency - customers have little visibility into how their money is being used, while banks capture most of the interest earned. This outdated system particularly impacts time-sensitive payments, small businesses waiting on cash flow, and anyone needing quick access to their funds.

II. Banking the Unbanked: Limited Access to Financial Services

Over 1.4 billion people globally lack access to basic financial services, creating serious barriers to economic development and social mobility. Traditional banking excludes these populations through high minimum balances, complex documentation requirements, and prohibitive fees. Without a bank account, individuals cannot safely save money, earn interest on their savings, send or receive digital payments, or build credit history. This exclusion has far-reaching consequences - the unbanked are more vulnerable to exploitation, less likely to build generational wealth, and experience lower social mobility. While their money sits idle, inflation steadily erodes its value, creating a cycle of financial disadvantage that often spans generations.

III. Problems with Cards: High Fees and Security Risks

Credit and debit card systems burden merchants with substantial processing fees, typically ranging from 1.5% to 3.5% per transaction. These fees disproportionately impact small businesses, forcing them to either absorb the costs or pass them on to consumers through higher prices. Beyond the financial burden, card payments face persistent security challenges. Credit card fraud causes billions in losses annually through sophisticated schemes like skimming devices, phishing scams, and data breaches. The chargeback system, while designed to protect consumers, often creates additional headaches for merchants who must deal with fraudulent claims, dispute resolution costs, and the risk of account penalties. This combination of high fees, fraud risks, and chargeback issues makes the traditional card payment system increasingly unsustainable for modern commerce.

IV. Cross-Border Transactions: Expensive and Slow

International money transfers and remittances face significant obstacles in the traditional banking system. When sending money across borders, individuals encounter high fees that can reach up to 7% of the transfer amount, along with hidden costs in unfavorable exchange rates. A typical international transfer can take 3-5 business days to process as it moves through multiple intermediary banks and clearing systems. This delay particularly impacts migrant workers sending money home to support their families, forcing them to either wait days for critical funds to arrive or pay premium fees for faster service. The system's complexity also creates additional friction through documentation requirements, limited operating hours, and restricted access in many regions where banking infrastructure is underdeveloped.