Editing Unbanked

While fees help the company make money, Unbanked wants to keep them low—and rather use economies of scale to make money from its customers. Its philosophy is: a smaller piece of a bigger pie.

The regulation of individual data is changing rapidly, and in unpredictable ways. A change in regulation could adversely affect its business, including causing its business model to no longer be viable. Costs associated with information security – such as investment in technology, the costs of compliance with consumer protection laws and costs resulting from consumer fraud – could cause its business and results of operations to suffer materially. Additionally, the success of its online operations depends upon the secure transmission of confidential information over public networks, including the use of cashless payments. The intentional or negligent actions of employees, business associates or third parties may undermine its security measures. As a result, unauthorized parties may obtain access to its data systems and misappropriate confidential data. There can be no assurance that advances in computer capabilities, new discoveries in the field of cryptography or other developments will prevent the compromise of its customer transaction processing capabilities and personal data. If any such compromise of its security or the security of information residing with its business associates or third parties were to occur, it could have a material adverse effect on its reputation, operating results and financial condition. Any compromise of its data security may materially increase the costs that Unbanked incurs to protect against such breaches and could subject the company to additional legal risk.

Its reputation and the quality of its brand are critical to its business and success in existing markets and will be critical to its success as it enters new markets. Any incident that erodes consumer loyalty for its brand could significantly reduce its value and damage its business. Unbanked may be adversely affected by any negative publicity, regardless of its accuracy. Also, there has been a marked increase in the use of social media platforms and similar devices, including blogs, social media websites and other forms of internet-based communications that provide individuals with access to a broad audience of consumers and other interested persons. The availability of information on social media platforms is virtually immediate as is its impact. Information posted may be adverse to its interests or may be inaccurate, each of which may harm its performance, prospects or business. The harm may be immediate and may disseminate rapidly and broadly, without affording the company an opportunity for redress or correction.

Some of its competitors have made or may make acquisitions or may enter into partnerships or other strategic relationships to offer more comprehensive services than they individually had offered or achieve greater economies of scale. In addition, new entrants not currently considered to be competitors may enter its market through acquisitions, partnerships or strategic relationships. Unbanked expects these trends to continue as companies attempt to strengthen or maintain their market positions. The potential entrants may have competitive advantages over us, such as greater name recognition, longer operating histories, more varied services and larger marketing budgets, as well as greater financial, technical and other resources. The companies resulting from combinations or that expand or vertically integrate their business to include the market that it addresses may create more compelling service offerings and may offer greater pricing flexibility than it can or may engage in business practices that make it more difficult for the company to compete effectively, including on the basis of price, sales and marketing programs, technology or service functionality. These pressures could result in a substantial loss of its customers or a reduction in its revenue.

Unbanked faces competition with respect to any products that it may seek to develop or commercialize in the future. Its competitors include major companies worldwide. Many of its competitors have significantly greater financial, technical and human resources than Unbanked has and superior expertise in research and development and marketing approved products and thus may be better equipped than company to develop and commercialize products. These competitors also compete with the company in recruiting and retaining qualified personnel and acquiring technologies. Smaller or early stage companies may also prove to be significant competitors, particularly through collaborative arrangements with large and established companies. Accordingly, its competitors may commercialize products more rapidly or effectively than Unbanked is able to, which would adversely affect its competitive position, the likelihood that its products will achieve initial market acceptance, and its ability to generate meaningful additional revenues from its products.

To succeed in its intensely competitive industry, Unbanked must continually improve, refresh and expand its product and service offerings to include newer features, functionality or solutions, and keep pace with changes in the industry. Shortened product life cycles due to changing customer demands and competitive pressures may impact the pace at which Unbanked must introduce new products or implement new functions or solutions. In addition, bringing new products or solutions to the market entails a costly and lengthy process, and requires company to accurately anticipate changing customer needs and trends. Unbanked must continue to respond to changing market demands and trends or its business operations may be adversely affected. Unbanked must also anticipate and respond to customer demands regarding the compatibility of its current and prior offerings. These demands could hinder the pace of introducing and implementing new technology. Its future results may be affected if its products cannot effectively interface and perform well with software products of other companies and with its customers’ existing IT infrastructures, or if Unbanked is unsuccessful in its efforts to enter into agreements allowing integration of third-party technology with its database and software platforms. Its efforts to develop the interoperability of its products may require significant investments of capital and employee resources. In addition, many of its principal products are used with products offered by third parties and, in the future, some vendors of non-Company products may become less willing to provide company with access to their products, technical information and marketing and sales support. As a result of these and other factors, its ability to introduce new or improved solutions could be adversely impacted and its business would be negatively affected.

Recruiting and retaining highly qualified personnel is critical to its success. These demands may require company to hire additional personnel and will require its existing management and other personnel to develop additional expertise. Unbanked face intense competition for personnel, making recruitment time-consuming and expensive. The failure to attract and retain personnel or to develop such expertise could delay or halt the development and commercialization of its product candidates. If Unbanked experiences difficulties in hiring and retaining personnel in key positions, it could suffer from delays in product development, loss of customers and sales and diversion of management resources, which could adversely affect operating results. Its consultants and advisors may be employed by third parties and may have commitments under consulting or advisory contracts with third parties that may limit their availability to us, which could further delay or disrupt its product development and growth plans.

The Company relies on certain intellectual property rights to operate its business. The Company’s intellectual property rights may not be sufficiently broad or otherwise may not provide company a significant competitive advantage. In addition, the steps that Unbanked has taken to maintain and protect its intellectual property may not prevent it from being challenged, invalidated, circumvented or designed-around, particularly in countries where intellectual property rights are not highly developed or protected. In some circumstances, enforcement may not be available to company because an infringer has a dominant intellectual property position or for other business reasons, or countries may require compulsory licensing of its intellectual property. Its failure to obtain or maintain intellectual property rights that convey competitive advantage, adequately protect its intellectual property or detect or prevent circumvention or unauthorized use of such property, could adversely impact its competitive position and results of operations. Unbanked also rely on nondisclosure and noncompetition agreements with employees, consultants and other parties to protect, in part, trade secrets and other proprietary rights. There can be no assurance that these agreements will adequately protect its trade secrets and other proprietary rights and will not be breached, that Unbanked will have adequate remedies for any breach, that others will not independently develop substantially equivalent proprietary information or that third parties will not otherwise gain access to its trade secrets or other proprietary rights. As Unbanked expands its business, protecting its intellectual property will become increasingly important. The protective steps Unbanked has taken may be inadequate to deter its competitors from using its proprietary information. In order to protect or enforce its intellectual property rights, Unbanked may be required to initiate litigation against third parties, such as infringement lawsuits. Also, these third parties may assert claims against company with or without provocation. These lawsuits could be expensive, take significant time and could divert management’s attention from other business concerns. The law relating to the scope and validity of claims in the technology field in which Unbanked operates is still evolving and, consequently, intellectual property positions in its industry are generally uncertain. Unbanked cannot assure you that it will prevail in any of these potential suits or that the damages or other remedies awarded, if any, would be commercially valuable.