MIT Solve

Solution Overview

Solution Name:

Betriax

One-line solution summary:

Trust-based peer-to-peer foreign exchange market for companies

Pitch your solution.

Historically, micro and SME lose money when they exchange currencies. Their financial health is the key for increasing welfare and wealth globally. When the foreign exchange market operates with transparency, companies trust.

Betriax is a spot foreign exchange marketplace where companies fix the exchange rate between them. They participate in the formation of the exchange rate directly in a 100% banked and digital model. So, companies abandon the old "exchange rate-taker" economic model.

Companies will be healthier to face challenges and create new jobs or support the existing ones. For example: exporters represent approximately one third of the GDP growth in countries in Latin America. Preserving jobs is mandatory for them. Thus, their gains through the exchanging will impact positively in their cash flows and get more resources per each dollar. Finally, those resources will be allocated efficiently and invested in training of employees and collaborators.

Film your elevator pitch.

What specific problem are you solving?

Micro, Small and Medium enterprises lose money when they exchange currencies. They lose between 1 per cent and 13 per cent approximately.

The traditional financial market and the foreign exchange market are governed by the rules of incumbents (traditional financial intermediaries, banks). Asymmetries of information are the key of this. Transparency, the solution.

Betriax democratize the access and increase the efficiency of a real foreign exchange market. In this context, enterprises can analyze and figure out how to create "their" price. So, it is a huge process where the new market, the disruption of Betriax, act as a catalyst to stop financial losses.

What is your solution?

A marketplace where companies can fix the exchange rate between them. Transparency, efficiency and equality are pillars that promotes Trust in a 100% digital and banked environment.

In order to create awareness between leaders of Micro & SME, we had created a tool to estimate the max. amount of money they lose per year. This allow them to realize how to internalize efficient practices in their rationale and optimize their financial cash flows.

On the other hand, banks can improve the way they establish relationships with our clients. A new arrangement in the new market will inject the highest dose of efficiency trough competition. And, of course transparency will feed the virtuous cycle of formation of rational expectations.

Governments will be our supporters because the impact on the international trade sector (exporters). Betriax could be understood as a zero-investing public policy to increase the level of welfare.

Who does your solution serve, and in what ways will the solution impact their lives?

Micro & SME in Latin America

Leaders of this enterprises

Employees

Employees´ families

Governments

Regulators

Banks

Other financial intermediaries

Which dimension of the Challenge does your solution most closely address?

Enable small and new businesses, especially in untapped communities, to prosper and create good jobs through access to capital, networks, and technology

Explain how the problem, your solution, and your solution’s target population relate to the Challenge and your selected dimension.

To create positive impact on financial health of Micro & SME is our Mission. The alignment of interests of stakeholders is the key for the sustainability of the market. We establish different and deep relationships with each component of the market.

We put people and companies at the center. So, we understood and felt their "pains". After that, we design the highest platform to preserve the value of their efforts.

In what city, town, or region is your solution team headquartered?

Bogota, Colombia

What is your solution’s stage of development?

Prototype: A venture or organization building and testing its product, service, or business model

Who is the primary delegate for your solution?

Roberto Vargas