agree to participate at whatever level they feel comfortable. They don’t have to take on the total amount being fi nanced – they can loan $50, $100, $1,000, etc., towards the total based on the terms being offered and their individual willingness or ability to lend. “The fi rst objective of the two-pronged OMNIS value proposition is providing access to the capital our users need on repayment terms they can meet,” Zak points out. “This ability to structure the amount being requested according to conditions set by the user and agreed-upon by the individual lenders or contributors drives a large part of the value we deliver.” Zak notes that minority depository institutions and community banks like his employer, First Independence Bank, and Auburn University Credit Union – two of OMNIS’ fi nancial services partners – represent the most promising opportunities for expanding the reach of the OMNIS platform through licensing agreements that bring new customers to the bank or credit union. “These community-oriented fi nancial institutions are seeking to help much the same demographic we are targeting – they want them as customers. Like us, they know that research indicates international micro- loans are paid back 98% of the time. And that same data also shows having a personal connection between lending parties further reduces loan default rates below 1%. This is attractive to fi nancial institutions seeking to add qualifi ed customers to their local community banking rolls.”
With the help of OMNIS, she starts taking out loans from her friends and family back in Argentina and paying them off according to the terms she and her lenders agree upon up front. She’s building fi nancial credibility – a record of borrowing and repayment – while also becoming fi nancially literate. OMNIS reports the record of the creditworthiness she’s establishing on the OMNIS platform to the banks the company is connected with here in the U.S. – they are, by law, the only entities able to update credit scores. Before too long, she’s able to rent an apartment. “She’s building a credit history here, and now she can buy a sofa, some furniture and other household items – she’s on her way. She saves enough for a downpayment and buys a car. Thanks to her new-found, decidedly personal understanding of how the fi nancial industry works here, she applies for a job at a local bank – which she gets. She is now living the American Dream, thanks to OMNIS and, of course, her own dedication and hard work. That’s our mission, our value proposition personi fi ed.” OMNIS is an application software program users install on their phone that enables them to reach out to their contacts for fi nancial assistance via a customized request based on their speci fi c fi nancial needs and their ability to pay it back. OMNIS users can set the amount and terms of a loan being requested, and their contacts or anyone on the platform can HOW OMNIS WORKS
THE AUBURN FAMILY DELIVERS Zak credits the Auburn Family and the New Venture Accelerator for helping him and his team get their new business off the ground. One person whose experience and insight has been particularly instrumental, according to Zak, is Kenneth Kelly, chairman and CEO of First Independence Bank and an alumnus of Auburn University’s Samuel Ginn College of Engineering. Kelly put Zak in touch with Dimitrius Hutcherson, EVP, Chief Technology Of fi cer and Chief Administrative Offi cer at First Independence, to help work through all the connectivity requirements necessary to set up a direct link between OMNIS and banks. “The level of integration we need to establish between our platform and fi nancial institutions is daunting,” says Zak, “and it can take a long time because of all the regulations involved. But we’re beginning to get there, thanks to Kenneth and his team. We wouldn’t be as far along as we are today without them.” Auburn’s New Venture Accelerator also ranks high on Zak’s gratitude list. “Drafting, refi ning, and fl eshing out our business plan was unlike anything I’d done before – and that process continues as we evolve our product development strategy and roll- out plans. Our fundraising approach is based initially on seed fi nancing pitch competitions, and nothing compares to having seasoned entrepreneurs like Jennifer Nay and Lou Bifano from the NVA put us through our paces in staged practice sessions and pitch rehearsals.”
Challenging? Yes. But worth it?
Absolutely.
14
Powered by FlippingBook