MMM Vs Banks: What's Happening?

A few days ago, I received a mail from one of the banks discouraging its customers from participating in MMM ponzi scheme. If one may ask, even as an ignoramus like me on all these schemes, in what way does MMM and other ponzi schemes affect the banks and financial houses?

1. Banks actually used to pay high interest rates of up to 30 percent and even more for investment banks as late as in the 60's, 70's, and even 1980's in some countries and Nigeria until lazy, greedy, and fraudulent bankers and opportunistic politicians came into the financial scene such that banks now collect depositors' monies at 3percent interest rate return to the owner which is spread over 12months and further subject to withholding tax and value added tax(VAT), leaving the investor with less than 2500Naira for say a hundred thousand on fixed deposit whereas the same banks lends to businesses at 27percent in addition to a further 3 percent real interest rate plus inflation adjustments. The banks sometimes make over one thousand percent of the money they get from depositors within days via foreign exchange, round tripping, express loans, underhand dealings, stocks, and traditional lending aside other covert means of making money. Lest tell ourselves the truth. Is this fair? Isn't this enough to drive investors especially struggling youths towards something that promises them a better life in spite of the possible risks?

The MMM I learnt uses a kind of mathematical model whose algorithm is a fusion of the existing interest accruing gradient at 30percent and the Fibonacci number system (like Pascal triangle) which makes it more lucid with minimized risks hence moving it steps ahead more conservative in nature than the usual bogus ponzi schemes. I even heard there's is now one ultimate cycler that yields a whopping 75 percent return after 4 days. Goodness gracious!

2. In truth, the banks can come up with investment models that can pay up to 15 percent return monthly or quarterly especially with ICT enhanced banking that doesn't need the overhead costs of staffs and massive edifices or infrastructures and other sources of overhead cost like MMM does which will be enough to send MMM and Co packing out of the country but it will expose their unhealthy dealings and give less room for them to accumulate excesses like they presently do.

3. MMM make their monies from Google and other platforms by bringing traffics to them using their platforms and operating systems aside window financial operations. In fact, the only problem MMM has from the way I am seeing it is in their not registering as a formal financial institution and paying tax. Once they do that I believe the Nigerian government will let them be. After all, security in Nigeria is just a word! The banks incur cost from the maintenance of massive facilities, staffs, high maintenance lifestyles, sky scrapper head offices in Marina, and tax aside other dealings. MMM have no staffs, offices, or physical presence but promoters who work in collaboration online.

4. Talking about risks of collapse, Nigerians don't seem to fear risk taking as such haven seen the likes of wonder banks, the stock exchange, and the banking sectors collapse with billions lost in the past. Nigerians have nine lives financially. They have met bigger devils. No shaking!

My take is that while I may not do MMM, I wouldn't join in condemning it neither do I advise any one to join it. I see MMM as something that can be morphed into a kind of New Age Investment Banking that can still be statutory and risk free. The owners of MMM and the banks should think about this deeply and get their mathematicians to design a workable model that will make banking exciting again without the attraction for ponzi schemes and the attendant consequences. Times have changed and the way we do businesses must reflect the age we are in. The economy is now too hostile for the present order.

The investment banks should see MMM as a challenge rather than a threat and go back to the drawing boards to cook something creatively delicious for the investing public to get excited with the financial sector again.

Make FG see this topic na gobe,
MMM so you dare Buhari ? OK
Kontinu

op my thoughts exactly.
mmm can be a dope financial bank that can make our chinko bank go extinct hence they discourage thier customers

This is an insightful and illuminating piece. Kudos

MMM can never metamorphose into a bank, they are entirely different in operational mode except we want to deceive ourselves which of course we like doing. MMM offers no guaranty on investments, that you can actually see on their website.Now let's assume there are 10 ppl involved in a scheme,
1st person first pioneer of d scheme
2nd person's money go to d 1st person.
3rd person's money goes to d second.
4th's money to d third
up to the 10th person whose money goes to the 9th man on d pyramid.
My question now is who's gonna pay the 10th person who made d last payment.
Your guess is as good as mine.
I'm neither in support of nor against the scheme, I don't care what you do to your money.
I just want to make common sense

the banks are just too greedy,how can an individual get 2500,at the end of the month from fixed deposit when they in return accumulate excesses on r.o i,using the individuals money,bringing the popular phrase monkey dey work baboo dey chop,we are in a digital world now where businesses now share profits 50/50 with customers,they should look at their service lifecycle and bring mouthwatering rewards.

the banks are just too greedy,how can an individual get 2500,at the end of the year from fixed deposit when they in return accumulate excesses on r.o i,using the individuals money,bringing the popular phrase monkey dey work baboo dey chop,we are in a digital world now where businesses now share profits 50/50 with customers,they should look at their service lifecycle and bring mouthwatering rewards.

Alhajipablo:
MMM can never metamorphose into a bank, they are entirely different in operational mode except we want to deceive ourselves which of course we like doing. MMM offers no guaranty on investments, that you can actually see on their website.Now let's assume there are 10 ppl involved in a scheme,
1st person first pioneer of d scheme
2nd person's money go to d 1st person.
3rd person's money goes to d second.
4th's money to d third
up to the 10th person whose money goes to the 9th man on d pyramid.
My question now is who's gonna pay the 10th person who made d last payment.
Your guess is as good as mine.
I'm neither in support of nor against the scheme, I don't care what you do to your money.
I just want to make common sense

Whenever you don't understand something very well. Its simple to just ask and get proper explanation. Whose going to pay to the 10th? Well at least one person from 1 to 9 would have re- PH and the money used to pay the 10th person. Op said something about pascal triangle which I very much concur with. The ideology is similar to Pascal's triangle. As long as we have upto 1million members or More who are consistently PHing and GHing. MMM will not crash.

Alhajipablo:
MMM can never metamorphose into a bank, they are entirely different in operational mode except we want to deceive ourselves which of course we like doing. MMM offers no guaranty on investments, that you can actually see on their website.Now let's assume there are 10 ppl involved in a scheme,
1st person first pioneer of d scheme
2nd person's money go to d 1st person.
3rd person's money goes to d second.
4th's money to d third
up to the 10th person whose money goes to the 9th man on d pyramid.
My question now is who's gonna pay the 10th person who made d last payment.
Your guess is as good as mine.
I'm neither in support of nor against the scheme, I don't care what you do to your money.
I just want to make common sense

The 10 person is going to be payed by the unborn babies, no business survives without new recruit even the world we live in, thats why we procreate.

Alhajipablo:
MMM can never metamorphose into a bank, they are entirely different in operational mode except we want to deceive ourselves which of course we like doing. MMM offers no guaranty on investments, that you can actually see on their website.Now let's assume there are 10 ppl involved in a scheme,
1st person first pioneer of d scheme
2nd person's money go to d 1st person.
3rd person's money goes to d second.
4th's money to d third
up to the 10th person whose money goes to the 9th man on d pyramid.
My question now is who's gonna pay the 10th person who made d last payment.
Your guess is as good as mine.
I'm neither in support of nor against the scheme, I don't care what you do to your money.
I just want to make common sense

Who is going to pay bankers if all customers withdraw their monies?

Will all customers withdraw their savings, YES, if the bank fails to treat customers rightly. Hence, they recruit you and other graduates to pose as Marketers, and even use some as se.x tools to retain loyal customers.


MMM will crash when the owners fail to attract new customers, and retain older ones (just like any business).

Until you see bankers on their knees begging politicians and oil barons, you'd always assume bankers plough money from potatoe roots. There is no magic behind a bank's operational model. A lot of similarity can be drawn from MMM and both are exposed to similar risks (customer retention).

Alhajipablo:
MMM can never metamorphose into a bank, they are entirely different in operational mode except we want to deceive ourselves which of course we like doing. MMM offers no guaranty on investments, that you can actually see on their website.Now let's assume there are 10 ppl involved in a scheme,
1st person first pioneer of d scheme
2nd person's money go to d 1st person.
3rd person's money goes to d second.
4th's money to d third
up to the 10th person whose money goes to the 9th man on d pyramid.
My question now is who's gonna pay the 10th person who made d last payment.
Your guess is as good as mine.
I'm neither in support of nor against the scheme, I don't care what you do to your money.
I just want to make common sense

Who is going to pay the 10th bank customer if the 1st to 9th customers takes their capital and interest and stop depositing?

It is all the same....both need you and I to keep putting our money in them and never withdraw all of them all at once

So MMM should pay tax for providing a platform for me to dash you money, abi?

We dey dash churches money since time immemorial una no ask them to pay tax, Issorite.

Acidosis:



Who is going to pay bankers if all customers withdraw their monies?

Will all customers withdraw their savings, YES, if the bank fails to treat customers rightly. Hence, they recruit you and other graduates to pose as Marketers, and even use some as se.x tools to retain loyal customers.


MMM will crash when the owners fail to attract new customers, and retain older ones (just like any business).

Until you see bankers on their knees begging politicians and oil barons, you'd always assume bankers plough money from potatoe roots. There is no magic behind a bank's operational model. A lot of similarity can be drawn from MMM and both are exposed to similar risks (customer retention).

Banks create profit by bank charges (ATM fees, account fees, transfer fees etc). They also make money from interest on loans given to both businesses and individuals.
Banks also buy and sell bonds as necessary.
This is basic knowledge.
Most banks make billions of profit annually. MMM and banks are not the same at all.


Where does MMM make their own money.

raayah:


Banks create profit by bank charges (ATM fees, account fees, transfer fees etc). They also make money from interest on loans given to both businesses and individuals.
Banks also buy and sell bonds as necessary.
This is basic knowledge.
Most banks make billions of profit annually. MMM and banks are not the same at all.


Where does MMM make their own money.

All you've mentioned revolve around customers. What is bond, ATM, transfer fees without the customer?

My point is businesses will survive as long their owners retain old customers, and attract new ones.

isrena:
Who is going to pay the 10th bank customer if the 1st to 9th customers takes their capital and interest and stop depositing?

The bank would pay them.

In Nigeria today, you need N25b to open a commercial bank. Also, most most bank deposits are insured.


Don't compare MMM to a bank.

Iya Basis needs customers buy her food, so also does Mobil need customers for its crude but they are not in anyway comparable.