Executive Summary
AIBanks is paving the road for blockchain to the banking system managing a $12 trillion monetary base, processing $199 trillion portfolio of loans and 120 trillion payments per year.
Banks and regulators made the first steps in adopting crypto currencies to the banking system and quadrupled coins capitalization this year. Headlines like "Blockchain will do to the banking what the internet did to media" flooded the mainstream business agenda shapers such as Harvard Business Review, The Economists, McKinsey MGI. Ripple has beaten 13 billion capitalization after 40x growth in 3 month.

Distributed ledger has the power to decentralize banking and diminish cost of existing middlemen. Blockchain combined with Artificial Intelligence has the potential to completely automate antifraud and customer relations accounting for 80% of the banking operations. Thus, leading to the rise of fully automated, zero-cost banks.

AIBanks aims to facilitate the blockchain and crypto community in decentralizing commanding heights of the global economy - banking. Our mission is to make crypto coins as widely spread as fiat currencies, to enable emergence of fully automated banks and to set up smart contracts governing stable coins issuance in a more predictable and independent way than the central banks' boards elected by politicians.

We roll out the AIBanks platform on a lean step-by-step basis:

AIBanks is launching Phase I development - home lending marketplace for banks and investors based on our Mortgage Lending as a Service (MLaaS) platform Zalogo operating since 2013, which has processed more than 1000 loans. AIBanks Zalogo is set up to save up to 9 billion man-hours and $600 billion of loan costs per year because our blockchain fraud prevention technology and AI enables immediate underwriting and loans sale to the most suitable bank or investor. Therefore, banks and even chatbots will deliver loans at the best rate possible in seconds to borrowers and lenders.

Banks and investors will purchase AIB tokens (AIBs) to pay for transactions via our platform and generate growing demand for the AIBs.

After successful implementation of our home lending platform, we plan to launch Phase II development - other loans, deposits, payments and capital market platforms. These services will generate a sustainable demand for a stable crypto coin as a means of payment rather than an investment instrument. Therefore, allowing us to commence Phase III development – activating Stable Coin Smart Contract to stabilize the AIBs against a basket of fiat currencies (after targeted 10-x growth since ICO) and make the AIBs a convenient alternative to them.

Banks will offer accounts in BTC, ETH, WAV, XRP, LTE and AIB (etc.) to their multibillion-client base.

The AIBanks team has more than 50 years of experience in banking. Our partners and advisors have a deep local knowledge of mortgage markets and banking in the USA, the EU, India, Brazil and other emerging countries.

We are proud to cooperate with the leaders and pioneers of the crypto community, paving the road for the new edge technology to the banking system managing a $12 trillion monetary base, processing $199 trillion portfolio of loans and 120 trillion payments per year.
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70% of banking operations, regulations and costs are related to fraud prevention. Nevertheless investors and depositors of banks often loose money. Low transparency and accountability of lenders is the major bottleneck of the industry development.

The largest loan marketplace lost 80% of capitalization after investors recognized that they cant trust its loans records.
THE LARGEST PROBLEM OF BANKING IS
FRAUD
If you knew where to look inside the loan company, things were worse than anybody realized.
THE FIRST ICO OF BLOCKCHAIN BANKING PLATFORM
paving the road for blockchain community to the banking system managing a $12 trillion monetary base, processing $199 trillion of loans and 120 trillion payments per year
BANKS TO DELIVER CRYPTO CURRENCIES TO 2 BILLION CLIENTS

Accounts in BTC, ETH, XRP, LTE, AIB and other cryptocurrencies may become available to 2 billion banks' clients for investment and payments along with USD, EUR, YEN etc.
RISE OF DEMAND FOR STORAGE AND PROCESSOR CAPACITY

~30 000 000 terabytes of encrypted storage and large computing capacity are needed to decentralize loans only.
Crypto mining infrastructure and projects like Storj, Golem and SONM will be able to handle the demand.

CRYPTO CAPITALIZATION GROWTH TOWARDS THE GLOBAL MONETARY BASE

Global monetary base or central banks balance sheet is ~ $12 trillion in comparison to ~ $40 billion of current crypto currency cap.

WORLDWIDE DECENTRALIZED CURRENCY AND RESERVE SYSTEM
Lending, deposits and payments will generate sustainable demand for a stable crypto coin.
On the supply side, banks will be able to borrow crypto coins minted via our smart contract like they borrow dollars from Federal Reserve System. That is how decentralized Reserve System may be created.
SOLVING "TOO BIG TO FAIL" PROBLEM

Insolvent large centralized banks threaten triggering domino effect and thus are bailed out. Taxpayers cover excessive risks and fraud hidden in manipulated accounting reporting.
Decentralized banking is more immune to domino effects as it is far more transparent and less interdependent.

FEWER "BLACK SWANS"

The credit crisis of 2008 happened due to low transparency of Mortgage-Baked Securities.
AIBanks makes loans pools transparent. So investors would never accumulate so many MBS and CDOs with low down payment, motivating borrowers to default when house price decline below their mortgage debt value.
PHASE I
AIB HOME LOANS PLATFORM COMES FIRST

AIBanks launches on blockchain home lending marketplace AIB Zalogo. Zalogo has processed 1000+ mortgage deals and proved potential to erase prohibitive deal costs up to 90 man-hours and $9 000 per deal.
1. AIB HOME LENDING - ZALOGO

Home equity loans may replace more consumer loans and save $500 bn on interest payments annually.
AIB deploys Smart Contracts and AI to slash origination costs and make home loans pools transparent in Emerging markets.
Global home loan portfolio ~ $26 trillion
2. AUTO LOANS

Despite relatively simple origination process refusal rate is high for secondary auto loans. Decentralized loans marketplace will reduce refusal rate and origination and securitization costs.

Global auto loan portfolio ~ $2 trillion.
3. SMB AND CONSUMER LOANS

These unsecured types of loans are more prone to assymetric information and negative selection risks than secured loans. Originators tend to keep good clients to themselves while selling "rotten" loans to investors.
Blockchain transparency will be helpful there as well.

PHASE II
LEAN, STEP BY STEP ROLL OUT
after successful deployment of loan platform we will be able to leverage the platform for related products...
4. PAYMENTS

Retail and corporporate payments, international transfers (potential cooperation with Ripple), SWIFT and cards are well positioned to benefit from decentralization.
5. DEPOSITS

Corporate Balances, Current Deposits and Savings Accounts
6. CAPITAL MARKETS

Securitization FX, Debt & Equities, Structured Products, Asset Management, Private Banking
PHASE III
STABLE COIN SMART CONTRACT DEPLOYED
AIB and used for lending and payments

After 10x growth AIB Stable Coin Smart Contract (SCSC) is activated.
The SCSC issues AIB for lending when its price is high and purchases from the market when the price is below target.

WILL BLOCKCHAIN STEP IN THE GLOBAL ECONOMY?
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