BABB App Ltd., the London fintech company, plans to soft launch its blockchain banking platform in the second quarter. The firm has applied for a full banking license and wants to enter the Financial
BABB App Ltd., the London fintech company, plans to soft launch its blockchain banking platform in the second quarter. The firm has applied for a full banking license and wants to enter the Financial Conduct Authority's regulatory sandbox.
The system runs on Ethereum's smart contract technology. BABB built what it calls a "decentralized information model" to cut costs while preserving data integrity and security. The platform serves both individuals and small businesses.
The platform encrypts customer data and stores it on the blockchain. Users maintain complete control over permissions—they decide who can access their information and what that access means. Biometric authentication handles account setup and transactions. Big Data analytics help the company optimize customer matching and manage risk. AI powers customer self-service tools.
To open an account, users download the mobile app, submit a selfie, and provide a voice recording. "I believe BABB's plan to bring banking services to everyone, through the blockchain and the latest mobile technology, will both provide new features not seen in the high street banks and include many who have been excluded from the traditional financial system," Guido Branca, BABB's chief executive, said.
The platform connects users to each other for peer-to-peer transactions. Senders and beneficiaries interact without intermediaries or redundant technology layers. Users gain new ways to move money and leverage their social networks, with more control and visibility over their transactions.
BABB doesn't position itself as a challenger bank. The company sees its role as helping existing financial institutions innovate.
Other UK startups are pursuing similar blockchain applications. Secco Aura built a location-based financial social network using digital tokens as currency. The platform aims to transform commerce and create a social network built around peer-to-peer digital money.
Secco Aura is raising Series A funding with a target launch of its public beta in March. Chris Gledhill, the company's chief executive, told FSTech this month that the startup has scheduled pilots in offices, university campuses, and shopping centers.
The FCA regulates BABB as an Approved Payment Institution. The company raised seed funding in June 2016 and joined the Level39 Accelerator program at Canary Wharf.
