In a Nutshell: Even highly developed financial markets in the U.S. and Europe have millions of unbanked and underbanked individuals. But in less developed regions, those numbers rise considerably. Blockchain technology offers a potential solution, but cryptocurrency has yet to see mainstream adoption. The Sprinkle Group crypto ecosystem — built on the SprinkleCoin — aims to change that. Sprinkle is dedicated to making blockchain more accessible by offering an easy-to-use, mobile suite of crypto banking and investment services. Its tools also include resources to help unbanked consumers learn how to control their own finances.
According to the Federal Reserve, 6% of American adults lacked a bank account in 2018. Another 16% were underbanked, meaning they held an account but often needed to use alternative financial services, including money orders and check-cashing services.
Those percentages may seem small, but they translate to well over 3 million unbanked and 12 million underbanked Americans in 2018. Elsewhere in the world, the situation is more concerning, with the World Bank’s Global Findex Database reporting more than 1.7 billion adults without a bank account in 2017.
But the Global Findex also found that two-thirds of the global unbanked population in 2017 owned mobile phones and could access digital financial services if they were available. Unfortunately, banks can’t fill service gaps with digital products quickly enough due to the cost and risk structures of their legacy providers.
The Sprinkle Group aims to disrupt the global financial services industry with its cryptocurrency ecosystem — built on the SprinkleCoin — that benefits both unbanked and underbanked individuals. Sprinkle is positioning itself to reach markets that traditional providers can’t through its brands that provide not just a range of financial solutions but also tools and training to help consumers learn how to be successful.
Blockchain and cryptocurrency have emerged as potential solutions to the problem of unbanked and underbanked consumers. But although blockchain’s efficiencies make it an excellent fintech option, the crypto world has, so far, been complex, chaotic, and relatively unsophisticated in terms of product marketing. Sprinkle set out to make things easier, less volatile, and more informative for users.
“We’re making it simple for an average person to gain access to financial management — with a little bit of education,” Sprinkle Advisor Dr. Antoun Toubia told us. “In that way, we stand to disrupt the inefficient patchwork of legacy banking and financial services.”
SprinkleBit Social Investment Platform Offers Financial Education and a Trade Simulator
The Sprinkle Group’s ecosystem of companies is linked by the SprinkleCoin crypto token. Each company fills a specific need in the financial marketplace, with an overall mission to create a borderless crypto experience.
The group’s core offering is the SprinkleBit social investment platform. The mobile-based platform takes a gamified approach to trading forex stocks and other securities. It taps into social sharing and offers information and resources to help users gain the confidence they need to become successful investors.
The platform’s training resources include interactive courses and quizzes. And users can add to their knowledge base by following skilled investors on the platform, sharing insights, discussing hot topics, and even by engaging in simulated trading.
“It’s not like you go on the site just to trade,” Toubia said. “We also educate people on how to trade well.”
Premium features include a crowdsourced algorithm for evaluating the best stocks and users and a tool that mirrors another investor’s successful trades.
“Your portfolio is automated, and it can copy what other successful traders do,” Toubia said.
SprinkleBit is designed not just as a service, but also as a platform, and other companies can use the SprinkleBit API to enhance their own offerings.
For example, more than 9 million users access Webull for real-time market updates and to trade stocks, options, ETFs, and cryptos. And Webull leverages SprinkleBit to enhance its platform.
Russia’s VTB Bank, which has more than 34 million customers, is also moving forward with SprinkleBit technology. And SprinkleBit is working with Chinese banks and gaining access to a market of more than 800 million financial consumers.
SprinkleXchange Automatically Routes Crypto Trades for the Best Execution
SprinkleCoin functions as a transaction medium on the upcoming SprinkleXchange.
SprinkleXchange has already admitted thousands of early-bird users and is listed on the Bahrain Investment Market. Its scheduled IPO was held up by the COVID-19 pandemic, but by summer 2020, Toubia estimates the platform will be fully up and running.
“Imagine trading stocks with crypto over the blockchain. You can buy Microsoft, for example, and your transaction is reported in seconds,” Toubia said. “And it’s intact and unhackable, the most solid data and information reporting. It’s the blockchain, after all, rather than the older database technologies.”
SprinkleXchange is built on the premise that companies everywhere should have equal access to capital and that investors should support the companies and funds they believe in. It connects brokers and clients on a frictionless platform that enables fractional sharing to ease barriers to entry and accept a variety of crypto and fiat currencies.
What’s more, SprinkleXchange and its mobile app use an innovative API-based technology called smart order routing (SOR) to automatically locate the best trades at any given time.
“All the user has to do is place the order,” Toubia said.
And as with SprinkleBit, SprinkleXchange is designed to work with other platforms, and Bahrain’s stock exchange already has integration plans.
“Today, SprinkleXchange is offering technological advancement,” Toubia said. “Old-school exchanges all over the world have the opportunity to integrate SprinkleXchange in their platforms and benefit from the speedier and more secure trading blockchain offers.”
Sprinkle: Empowering a Global Network of Modern Financial Services
Sprinkle offers platforms and tools that will bring benefits to more investors around the world — even those who are inexperienced. Its U.S.-based SprinkleBrokerage is available in most countries and aimed at novice investors. The brokerage is insured by the Securities Investor Protection Corporation and offers an intuitive mobile app with bank-level security measures.
In areas where the crypto-based SprinkleXchange won’t be unavailable, SprinkleBrokerage offers opportunities that leverage much of the same technology, including SOR.
Also on the horizon for SprinkleCoin is a crypto payment vehicle to leverage inexpensive, intermediate-free blockchain transactions. Together, the components of SprinkleGroup form an impressive package for investor consideration as well as a foundation for entry into financial services.
“Given the billions of people around the world who don’t have access to banks and financial markets, we want to provide a pathway for them to get involved,” Toubia said. “We aim to educate these people and provide tools so they can have access to the potentials of the market.”
Sprinkle is gaining momentum in markets where national currencies have undergone chronic devaluation or where traditional banking infrastructure has been late to arrive.
“We’re in China and Malaysia, and we’re going to Indonesia and Russia,” Toubia said. From there, the group plans to enter the South Korean market, and from Bahrain, the company will venture into Kuwait and Saudia Arabia. In Europe, Sprinkle operates in Luxembourg and Georgia and is preparing to expand into Sweden.
“It’s not easy if you want to take your money out or want to participate in the financial markets in some of these places,” Toubia said. “But we believe blockchain is here to stay.”