At it’s very simplest, a bank facilitates the provision of the means to an end. The process of facilitating exchange of money (the means) between two or more parties is referred to as intermediation. In turn, this exchange facilitates economic trade activity (the end).
We are Simplifying Monetary intermediation. We are enabling financial services transparency and ubiquity in daily economic activity by amalgamating the platforms of commerce and banking. We are SimMation.
Let us explain.
Intermediation. Faciliating economic trade
Let’s begin with what intermediation is and why we refer to it?
A bank intermediates between two parties, one with excess capital, and the other requiring capital. This process of intermediation is done for one objective. Providing the means to an end.
That is to say, a bank provides money, from one party with an excess (a seller), to the other party with a deficit, i.e. requiring money (the buyer). These monies or capital (the means) is utilised to meet a personal, societal or business objective.
This is to provide the means to create, build or to provide goods and services (the ends) across our economies, or in other words, to facilitate economic trade.
A bank publishes the ability to take a deposit (acquire excess capital) and to lend (provide capital). It then searches for two parties with opposite requirements, one to deposit and the other to lend. It does this by facilitating the matching of their requirements and enabling exchange between the parties with transactional services. One party (the borrower) receives capital, the economic means or money to facilitate trade, meeting their economic end. The other (the depositor) receives income on their excess capital.
This facilitation is the process of intermediation; to publish, search for and match two parties for a mutual benefit.
The platforms of intermediating trade. Banking and Commerce
Banks provide a platform for economic trade. We refer to banks collectively as the banking platform.
The world’s manufacturing, distribution, procurement, trading, maintenance and support of physical or digital goods and services, is facilitated by commerce platforms.
These commerce platforms, at their simplest, also provide a similar service. One of intermediating means to an end. In this case, the means for two parties to also publish, search and interact with each other. This intermediation is in relation to the goods and services they produce, sell and/or buy from each other.
One party publishes to sell a good or service, and the other publishes a requirement to purchase a good or service. Both searching for the other, and being provided the ability to interact on the platform for the purposes of conducting trade.
Commerce platforms, also then facilitate trade by providing the process of intermediation; to publish, search for and match two parties. One a seller and the other a buyer, both interacting for their mutual benefit.
The commerce and banking platforms are the foundations of economic trade.
Amalgamating the platforms of trade. Increasing productivity
Global trade is facilitated by the process of intermediation across the banking and commerce platforms. The commerce platforms provide a marketplace, and the banking platform provides the capital and the services to transact between all parties.
All platforms are built to increasingly become as efficient and effective as possible. Ultimately allowing for productivity rates to increase for all parties interacting across the platforms, i.e. to reduce the cost, time, or effort to trade and transact.
Platforms do this by reducing rates of friction involved in the process of intermediation. Reducing friction means to reduce the number of steps required to undertake and complete any given activity or business function on the platform, and/or by simplifying any individual step.
To increase economic productivity will require the reduction of friction across both platforms. This can be achieved by amalgamating the information of both platforms to enhance the processes of intermediation; to publish, search for and match two parties for a mutual benefit.
This information will allow for the development and provision of a richer and more sophisticated set of financial and banking products and services. Financial products with greater optionality, reduced or optimised pricing, all with greater risk measurement, transparency and management.
Financial services and products that are ubiquitously and transparently available to all parties of the amalgamated platform of trade.
Simmation is simplifying the process of intermediation by creating the platform for amalgamation with the objective to simplify the following processes of intermediation:
- Manufacturing and distribution – the intermediation process of publishing
- Procurement – the intermediation process of searching (or discovery)
- Trading – the intermediation process facilitating transactions/payments
- Maintenance and support of goods and services – the intermediation process of retaining and building a network for continued trade between existing trading parties
SimMation is on an endeavour to build solutions for both existing platforms. These solutions will create a fabric which will allow interactivity between the existing platforms and ultimately an ecosystem amalgamating them both.
Simmation’s mission is to build greater efficiency and efficacy in the promotion, facilitation and transaction of economic trade; the processes of facilitating intermediation.
We are Simplifying Monetary intermediation. We are SimMation.
SimMation 