When was the last time your bank asked that?
Centuries ago, banks were responsible stewards who took minimal risks with their customers’ funds. Today the world of banking and finance is completely different.
Banks risk their customers’ hard-earned savings in toxic industries, toxic securities, and whichever investment fad maximizes the bank’s profitability at the expense of the customer experience.
Hardly a month goes by without a major banking scandal– a major institution caught lying, cheating, and robbing the very customers who have entrusted them with their savings.
We think this model is in desperate need of improvement.
When our depositors entrust us with their savings, we view this relationship as a sacred bond. We treat our customers, and their savings, with the utmost care and respect.
And our approach is based on three fundamental pillars:
Banks typically make money by taking risks with their depositor’s funds and investing them in shaky financial instruments to generate profit– black box financial derivatives, and complex, risky instruments like Collateralized Loan Obligations.
They seem to have forgotten, however, that they’re taking these risks with other people’s money. It’s a strange system indeed that banks make risky bets with your money, pocket the profit for themselves, and then charge you additional fees on top of it all.
The world saw firsthand back in 2008 how risky this can actually be. One day everything is fine. And the next– years of risk-taking causes a bank balance sheet to collapse overnight.
We think this model is unacceptable.
At Ndiorah Microfinance Bank, we prioritize safety above all else. And we do so by maintaining exceptionally high levels of liquidity, and capital, that vastly exceed typical levels at major banks, as well as minimum regulatory requirements.
We keep at least 40% of your deposits in high-quality liquid assets, so that your savings can be easily withdrawn even in times of a financial crisis.
Many large banks have reserves below 10%, and some even below 2%. This means that up to 98% of your savings has been loaned out and gambled away somewhere without your knowledge.
Ndiorah Microfinance Bank often maintains a Tier 1 Capital Ratio in excess of 100%, vs. around 10% for a major bank.
We only invest in conservative, low-risk assets. We only make loans backed by marketable, liquid collateral that vastly exceeds the loan value with a substantial margin of safety.
And unlike most banks, we will never own any mortgage-backed securities, risky derivatives, or any other high-risk asset that puts depositor funds at risk.
Modern banking is a black box with extremely limited transparency. Financial statements only provide scant information about what a bank is actually doing with your money.
For example, a large bank may show $100 billion in loans on its balance sheet. But what loans? How creditworthy are the borrowers? How much collateral is there? What’s the quality and value of that collateral?
Remember, every investment carries risk. And they’re taking these risks with YOUR money. The least they could do is be transparent with you about it.
We believe you have a right to know where every penny of your money is at all times.
It is not enough for us to merely state that we will be prudent, conservative, and responsible with your savings. We can prove it.
This is why we strive to provide maximum transparency and have made our daily balance sheet available to the public, so you know EXACTLY where your money is — down to the penny.
If we have invested our depositors’ savings in US Treasury Bills, you would know the precise CUSIP numbers of the T-bills, their maturity dates, and the amount.
If we make a short-term loan backed by real estate, you’ll be able to see the exact loan terms and the characteristics of the collateral, so you know how much it’s worth relative to the loan amount.
There is very little ‘relationship’ remaining in the modern banking relationship today. To most banks, you are just a number– at best, your account number; at worst, the amount of profit they can make from you.
Amazingly, many large banks tend to treat their customers like criminal suspects. And they’re closed to any out-of-the-box thinking.
We have an entrepreneurial culture and understand business in the 21st century. We can customize solutions to fit our customers’ needs. And we strive to treat all our customers, and their money, with dignity and respect.
And we strive to build real, personal relationships with our customers.
Our liquidity vastly exceeds industry standards in North America.
Tier 1 capital ratio well in excess of industry averages
All loans must be backed by collateral; ≤70% Loan-to-value ratio
ZERO
Zero exposure to risky derivatives and toxic assets
100%
OUR VISSION from anywhere in the world
We are fanatic about your privacy and information security
Personalized solutions no matter your timezone
We open accounts for both US and Non-US citizens, and legal structures from around the world
