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It actually was a little difficult to figure out what this business is about from their website, but their LinkedIn is comprehensive enough: “Overview Non-pub
by mlacks 7y ago
It actually was a little difficult to figure out what this business is about from their website, but their LinkedIn is comprehensive enough:
“Overview
Non-publicly held banks are facing increasing risks when they maintain a private list of their shareholders. Sharing unpublished information about the bank’s stock with a few shareholders exposes the bank, its management and directors to potentially serious liability. Simply answering one shareholder’s question without notifying every shareholder with the same information puts the bank at risk. The threat and penalty of litigation can affect the bank’s reputation and financial performance. In some cases banks can face civil and criminal penalties.
One of the fastest growing bank services companies today, BancList (BL) provides privately held financial institutions and their shareholders (and other authorized users) with an easy-to-use web-based posting service that replaces the list. BL lets shareholders post notices of their intent to buy or sell their bank stock and keeps the bank out of the negotiation process – the way transactions are supposed to occur.
Not only does BL provide a risk mitigation service for banks by replacing the list, it helps banks enhance shareholder value and provides banks with even more information about what is happening with their shares. BL bank clients receive automatic email alerts every time someone posts a notice, which keeps them aware of active negotiations.
BL is not a broker dealer and does not ask for a list of your shareholders. BL never interferes with the relationship between bank clients and their shareholders. BL does not collect broker fees for its services. BL clients pay an annual subscription fee based on the asset size of the financial institution.”
Very cool something of this scope operates with only a handful of employees.
[0]https://www.linkedin.com/company/communitybanklist https://www.linkedin.com/company/communitybanklist
- Trombone12 7y agoTo me the scope seems rather narrow, and the technical requirements about on par with a mailing list.
- scarejunba 7y agoTheir sole innovation over that is that they realized neutrality and being a third party is valuable because of regulation. Haha, this is pretty clever.
- FabHK 7y agoSimilarly, there is a business computing custom indices that a bank uses in products. The bank is perfectly capable of computing the index itself, but it needs to be handled by a third party that is paid handsomely to just re-calculate what the bank already calculated.
- adw 7y agoOne example of that is Markit Group, which had revenue of $1.5bn/yr when it merged with IHS in 2016 at an implied valuation of roughly $5.5bn. Best London startup of the last 25 years, including DeepMind, not close. https://en.wikipedia.org/wiki/Markit https://en.wikipedia.org/wiki/Markit Being a trusted third party is frequently an amazing business, if you can earn or negotiate your way there.
- djsumdog 7y agoFor this to work, don't they have to be the exclusive means of getting stock information for a bank? So everyone who owns bank stock in a bank that uses banclist must agree to use it to get all shareholder disclosure information?
- mpmpmpmp 7y agoProbably the opposite. Bank signs deal with banclist, notifies shareholders official information disclosures will only be done through banclist.
- xxpor 7y agoWhy banks specifically? Doesn't every private company with multiple shareholders have the same problem? Or is the legal situation for a bank different?
- hathawsh 7y agoThe BancList about page explains that they serve privately held companies as well. "BancList (www.banclist.com) helps shareholders of privately held financial institutions as well as other privately held companies and organizations communicate with each other via a 24/7 online platform..." https://banclist.com/about-us https://banclist.com/about-us