Virtual Banking Licenses For Sale Options

[Administrator]

(IMG:http://e-pec.info/forum/uploads/1168432256/gallery_1_45_3307.jpg)

Taking its Real Cash Economy to the Next Level: Entropia Universe Offer Virtual Entrepreneurs the Opportunity to Become Real Bankers in Cyberspace

With a virtual banking license in the Entropia Universe you can conduct business world-wide through the internet, securing clients not only on the virtual planet Calypso, but from all over the world. Provide a round-the-clock banking service for a community of over 500,000 registered accounts.

Five licenses will allow license holders the right to exclusively operate banking services within the Entropia Universe for the first two years. The licenses will automatically continue after this period; however, the market may be then opened up to other interested parties.

The Entropia Universe is the only virtual universe on the internet whose currency has a fixed exchange rate with the US Dollar. Its currency can easily be moved between Entropia and the real world by making a simple withdrawal from Entropia to your Real World bank account

Important Note:
The features described below are considered the base features available. Should an interested party hold a real banking license in the real world, many more services and features can be added. Please contact MindArk PE AB's Business Development Director David Simmonds at david.simmonds@mindark.com

Each virtual Banking License will allow its owner to:

Lend money to Entropia Universe Participants and collect interest for the service.

All loans will be secured against virtual items from the Entropia Universe. The license holder may determine the loan amount, the loan term, and the interest rate. The borrower will receive a loan voucher detailing the loan conditions. Loan vouchers are transferable.

Virtual items will be stored in a secure vault - inaccessible to even the license holder. The license holder may view items, but will not be able use any item while in the vault. In the case of a defaulted loan, the virtual item is automatically transferred to the license holder's inventory, allowing the license holder total access to, and ownership of the item in question. The license holder may then for example, trade the item in the Entropia Universe Auction system.

The license holder will have access to a detailed Management Panel allowing the complete administration of all loans. The license holder will be able to set interest rates, create, display and update a Value List of virtual items, and the amounts that may be borrowed for each item.

An NPC (a non-participant character able to carry out automated tasks) will automatically issue loans through a secure interface at any time, according to the Value List. The borrower may repay a loan at anytime during the loan term by presenting the loan voucher to the NPC and paying the loan amount and interest. The virtual item is then automatically transferred from the vault to the borrower's inventory.

Partake in the design and naming of their virtual bank building.

License holders may submit building names and designs to MindArk PE AB within 30 business days of the auction close; otherwise the buildings will be designed by MindArk PE AB.

The maximum plot allocated for the bank buildings will be 70 x 70 meters and 60 meters high. This is similar to the building in Fort Troy. Size restrictions may be imposed by MindArk PE AB when placing a building in the busiest and most built up areas like Port Atlantis.

The virtual banking licenses will be numbered 1 to 5. The auction winner of license 1 will have the first choice of location for bank number 1. The winner of license 2 will have the second choice of location for bank number 2, and so forth. There can only be one bank in any city or town. MindArk PE AB reserves the right to refuse any bank location.

Utilize the extensive advertising opportunities available within the Entropia Universe

Existing advertising opportunities will allow license holders to advertise their virtual services and/or real world services within the Entropia Universe all over Calypso. Each building will also allow advertising to be placed outside to display services, prices and other information.

Up-to-date market prices will be made available to the public on Calypso.

Make their own personnel available through avatars that can interact with and provide service to others.

An NPC in each bank building will administer all loans; however license holders may have their own personnel available through avatars that can greet customers, advise them about loans and rates and help with the loan process.

These extra personnel will not be granted any extra features, capabilities or administrative powers than are available to normal avatars and it is solely up to the license holder to make extra service personnel available or not.

Conditions

Following the auction, the license holder must have 1,000,000 PED available on their account inside the Entropia Universe. This is to insure that the banks will have cash readily available, so that Entropia participants may start utilizing their banking services. In the case a buyer of a Bank License does not fulfill this condition within 20 working days after the end of the auction, the license is forfeited and returned to the auction.

A monthly rent for the building, plus a 5% percentage of all interests charged is paid to MindArk PE AB. If the bank is placed on a land area owned by another participant, 2% of all interests charged go to the land owner, and 3 % to MindArk PE AB.

All transactions and loans are final. MindArk will not accept responsibility for any mistakenly made transactions.

All transactions will be monitored and suspicious transactions will be reported to the appropriate authorities.

Each of the five Banking Licenses will be made available at the public auction within the Entropia Universe in conjunction with Version Update 8.9 at the beginning of February 2007 and will remain on the auction for 3 months. Each license will be placed on the auction with an opening bid of 1 PED and no buyout price.

[King Buzzo]

Up-to-date market prices will be made available to the public on Calypso.

Do you think they mean market prices of all items? If so this would be great. I would love to see market prices ingame. Also, it would make those interested in loans have much more information at thier fingertips.

Marco, can you confirm?

[Aziphirael]

Looks like its going to be interesting few months :-)

[Domochevsky]

...
Make their own personnel available through avatars that can interact with and provide service to others.

An NPC in each bank building will administer all loans; however license holders may have their own personnel available through avatars that can greet customers, advise them about loans and rates and help with the loan process.

These extra personnel will not be granted any extra features, capabilities or administrative powers than are available to normal avatars and it is solely up to the license holder to make extra service personnel available or not.
...

Clever... really clever (IMG:http://virtualmindhive.com/forum/style_emoticons/default/lol2.gif)

[Burnsey]

Do you think they mean market prices of all items? If so this would be great. I would love to see market prices ingame. Also, it would make those interested in loans have much more information at thier fingertips.

Marco, can you confirm?

These prices would have to come from MA to be secure.... but could they take regular player trades bc that could make prices screwy, esp since ppl loan items for 0 peds all the time.

Would then all prices have to come from shops or auction? And then couldn't those be easily manipulated?

Set items in shops to low values and buy them over and over again to decrease prices
or do the opposite to increase prices. If it's normalized so big fluctuations aren't included, what if a group of shop owners colluded together and sold an item through all their shops then it could effect the prices.

[King Buzzo]

These prices would have to come from MA to be secure.... but could they take regular player trades bc that could make prices screwy, esp since ppl loan items for 0 peds all the time.

Would then all prices have to come from shops or auction? And then couldn't those be easily manipulated?

Set items in shops to low values and buy them over and over again to decrease prices
or do the opposite to increase prices. If it's normalized so big fluctuations aren't included, what if a group of shop owners colluded together and sold an item through all their shops then it could effect the prices.

People already do that with the current market pricing system, peauction.com. At least if MindArk did it it would reflect the true price of items, like you say, gifted, shopkeepers and even buyouts from auction.

I would argue the price would then be a true price.

[SB2]

I posted this in the closed thread but I think it deserves to be here as well....

There is also the possibility of the banks becoming the drivers of market value... After a period of time, it's not unreasonable to think that a bank might hold on to items above a certain value in speculation of a price rise... Given enough of these items, the bank then becomes the sole repository for these items and, by restricting the availability, the defacto driver of the market value of the items.... Food for thought.

[Burnsey]

I posted this in the closed thread but I think it deserves to be here as well....

There is also the possibility of the banks becoming the drivers of market value... After a period of time, it's not unreasonable to think that a bank might hold on to items above a certain value in speculation of a price rise... Given enough of these items, the bank then becomes the sole repository for these items and, by restricting the availability, the defacto driver of the market value of the items.... Food for thought.

yes but that's saying that the people who use those items for collaterol all have to default for the bank to own them.

What's more interesting is people using the Banks as a way to make money... My friend showed me this idea from an EF post.

You can give the item to a bank on loan. If the item goes down, you can default and keep the peds, if the item goes up in value, you pay off loan and get it back and sell for more.

[King Buzzo]

You can give the item to a bank on loan. If the item goes down, you can default and keep the peds, if the item goes up in value, you pay off loan and get it back and sell for more.

I think you will see the banks only willing to loan out around 40-50% of the market value of an item due to this fact. It is how a pawn shop works. Now, what you could do is make money by searching for items that may slip through the banks filter and take advantage. However, I suspect, if pressed, MindArk would side with thier, how shall I say, larger investors....

Anyone know the NIN song Piggy??? (IMG:http://virtualmindhive.com/forum/style_emoticons/default/lol2.gif)

[Burnsey]

I think you will see the banks only willing to loan out around 40-50% of the market value of an item due to this fact. It is how a pawn shop works. Now, what you could do is make money by searching for items that may slip through the banks filter and take advantage. However, I suspect, if pressed, MindArk would side with thier, how shall I say, larger investors....

Anyone know the NIN song Piggy??? (IMG:http://virtualmindhive.com/forum/style_emoticons/default/lol2.gif)

hey pig, yeah you!
Hey pig piggy pig pig pig


Yes, it wouldn't be wise for banks to give out 100% loans to people. But how many people in this game are wise? :slow_en:

[Epictetus]

WOW!

First off, nice post Erasmus in the closed thread. This will lead to some interesting attempts by people who pawn their item and then either default if the item tanks in value, or pay it off if the item soars in value. But I don't think MA will care about that.

As far as making the "market price" available to everyone, that is indeed very interesting. It sure will make it harder for shop owners...if someone can go to a "peauction" like terminal and see current market value they are less likely to impulse buy at a shop at a higher price. It will be all about acquiring items for less than market value.

My biggest impression from this announcement is that the owners of the banks are going to make huge money off of this. Even if they lose on market fluctuations in which the borrower pays in full, my god they will end every month with a few uber items they didn't have before.

The bidding will be insane!

[Svetlana]

I think you will see the banks only willing to loan out around 40-50% of the market value of an item due to this fact. It is how a pawn shop works. Now, what you could do is make money by searching for items that may slip through the banks filter and take advantage. However, I suspect, if pressed, MindArk would side with thier, how shall I say, larger investors....

Anyone know the NIN song Piggy??? (IMG:http://virtualmindhive.com/forum/style_emoticons/default/lol2.gif)

yup. That was my inclination to believe as well, which would be the only way to stop the market speculation really.

[Epictetus]

yup. That was my inclination to believe as well, which would be the only way to stop the market speculation really.

In which case the banks will make even more money because on a default they have more than doubled their layout.

[Svetlana]

In which case the banks will make even more money because on a default they have more than doubled their layout.

Absolultely, which is connected to our previous discussion of the banking system... whos interest will it really serve? Ideally, it needs to serve both the public and the lenders' interests, but how that can happen remains to be seen.

[SB2]

yes but that's saying that the people who use those items for collaterol all have to default for the bank to own them. ...

Not necessarily.... Banks are able to invest also...they are no different from the average player when it comes to buying and selling items... There's nothing to stop a bank from speculating or snapping up certain items....

[Erasmus]

I posted this in the older thread before this one was created:

-----------------------------------------------------

It's a pawn shop! A very expensive pawn shop (IMG:http://virtualmindhive.com/forum/style_emoticons/default/shok.gif)

Using items that can be highly variable in value from one week to the next, especially after a VU (see the weapon Amps market prices after that VU). In view of the risks, I am thinking loan sharking, not bank loans!

And no word about real estate deeds as collateral. Which would allow borrowers to still use and invest further into their shop or LA. That would make a lot more business sense for everyone ... and would be closer to what a bank does. I don't know of any bank in the real world who will take a gun collection as collateral for a loan (IMG:http://virtualmindhive.com/forum/style_emoticons/default/lol2.gif)

In light of the above, I can't stop laughing at the little mention on the MA page:
"Should an interested party hold a real banking license in the real world, many more services and features can be added."

Yeah! The North York Credit Union is looking for a new line of business after losing the cash card biz ... hustling guns and armors (IMG:http://virtualmindhive.com/forum/style_emoticons/default/lol2.gif) (IMG:http://virtualmindhive.com/forum/style_emoticons/default/lol2.gif) (IMG:http://virtualmindhive.com/forum/style_emoticons/default/lol2.gif)

Ok, I'll try to keep a straight face...

The concept is fundamentally flawed. Be it consumer or business lending, removing the enjoyment and productivity of the collateral from the borrower reduces its ability to repay the loan.

I can see the manipulations already: One can edge the market by taking loans on certain items, betting they will go down in price and let the loan default. If they go up, repay the loan and sell the item. Boy, that's a whole new world for traders!

Naah! The "banks" are only going to lend 30-50% of current market value to avoid the above. Then what is the point of locking up a valuable gun for so little PEDs? Just sell it at market and buy another one whenever the loot gods have mercy ... or the credit card is not maxed out.

I had real hope for the idea. It would have been good to unlock the cash locked up in real estate to pump up the economy. But I do not think this scheme will do much good to anyone or to the economy in general.
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[Burnsey]

Not necessarily.... Banks are able to invest also...they are no different from the average player when it comes to buying and selling items... There's nothing to stop a bank from speculating or snapping up certain items....

but how is that different than any ordinary player? Neo, Star, The Collector all do that already, if they owned a bank and did it, the same effect or if a new person comes and owns a bank and does it, same effect as before but with a new player.

This post has been edited by Burnsey: Feb 2 2007, 06:51 PM

[SB2]

but how is that different than any ordinary player? Neo, Star, The Collector all do that already, if they owned a bank and did it, the same effect or if a new person comes and owns a bank and does it, same effect as before but with a new player.

If it's a RL bank with a profit interest.... They have deeper pockets than most players and could, quite rapidly influence the market... Purely hypothetical but possible...

There's also the aspect of the licensees colluding to control interest rates... how will this be regulated?

[Burnsey]

There's also the aspect of the licensees colluding to control interest rates... how will this be regulated?

by not taking out loans? :P

[SB2]

by not taking out loans? :P

LOL... I'm not too sure that many loans will be taken out anyway...just throwing out possibilities...