RE:RE:CEO interview Jan 21/2021 Another noteworthy clarification was that transactions on the lending hub will not just be between borrowers and lenders. All participants in the supply chain will have virtual accounts with Peak so now SMEs, distributors, factories, material suppliers, etc can transact amongst themselves with Peak processing the payments for a fee.
lscfa wrote:
He clarified something in Monday's NR that was not clear. It's not a fee earned from clients. It's interest income earned from the bank where Peak aggregates the inflow and outflow of funds from its many clients. There is a time delay (say 2 days) between transactions which creates a balance in the account and Peak will earn daily interest on that balance. CEO said that eventually the balance will be in the billions and earn 2.5% => $25 million/yr for each billion.
"We'll also be earning a fee amounting to an annual rate of 1.5% to 3.0%, calculated and paid daily, on the aggregate value of the funds held in our clients' virtual bank accounts."