Player Features and Ideas Discussion

Savings Accounts

The next level of banking will be provided by investment corporations (NPC examples are Modern Finances, Caldari Funds Unlimited, Garoun Investment Bank). These institutions offer a range of ways for capsuleers to invest their money, in return for interest, or other benefits. These returns can be fixed, or variable. The variable return investments involve an element of risk, but the potential for real earnings. These types of accounts can also be provided by capsuleer-run corporations, ranging from fixed return, risk free investments, to more risky but potentially more rewarding ones.

Issues:
Interest paid on accounts by NPC corporations is an ISK faucet

Player-Run Investment Corporations

These corporations will all be underwritten by a Faction, as are the NPC investment corporations. In order to offer any investment, the corporation must have assets in a hangar that belongs to one of the Empire factions. These assets will be locked down for as long as the fund is in operation, although if new assets are added to the lockdown hangar, then other assets can be removed, as long as the total value covers the entire fund. In the case of blueprints used in this way, they can still be used for research or manufacturing jobs by the corporation, as normal.
For fixed rate, risk free investments, the value of the assets must exceed the total of money received from players, plus the interest payout needed for all existing investors. If the value of assets is insufficient to cover a new investor, then the prospective investment is cancelled. The corporation has no ability to cancel the fund early. When an investment completes, the corporation can pay back the principal plus interest from the corporation wallet, or, if that is not possible, the NPC faction takes assets from lockdown to cover the shortfall, and pays the investor their due, keeping any excess in a fund for other completed investments. Once all investments are completed, assets leave lockdown and return to the control of the corporation.

For variable return, risky investments, the value of assets locked down can be lower than the level needed to guarantee the fund, with lower levels allowing the promise of higher returns. The assets are liquidated as needed, paying off investors until nothing is left, in which case the investment fund is concluded, and remaining investors notified that the fund has collapsed.

Issues:
How to advertise?
How to notify investors?
Non-ISK returns? Items, loyalty points, standings?

Aren't players already doing this on Market Discussions subforum?

Problem with real banks and financial institutions in EVE is that they would be subject universally to the same thing that would happen in RL if laws were as lax. The second a bank had enough money, it would be split up among the investors and they would all bail to some private island populated by the 10-30 of them and a couple thousand strippers of every flavor imaginable.

And you coudlnt have enforcable laws in EVE without omnipotent and arbitrary enforcement with punishments that woudl make running the whole scheme not worthwhile to anyone.

The rules are enforced by requiring assets in lockdown before the fund begins, so unless the fund is offered as a very high risk venture, there is little risk of what you describe. If it is a high risk fund then yes, those who created the fund can keep the invested ISK, at the cost of losing their locked down assets.

What is more likely is that, after a long time of performing well and paying out, the value of the locked down assets becomes less of a risk to the fund managers, and they decide to 'cash in,' just as many EVE players have done in the past.

I would see the NPC banks as being the most reliable, and the safest, but with the lowest rates of interest paid.

It would then be up to player-run banks to differentiate themselves somehow, but I think they would only do this by offering higher returns, they couldn't really be safer than the NPC banks, which are 100% safe in my proposal.

And yes, the Icelandic banking system is famous the world over!

Yeah, that would be cool. I'd see that as part of the corporation overhaul that they have planned though, I don't think the current shares system works very well.

ISK sent!

But seriously, do you think these proposals would make it easier to run your business? Easier to reach more investors?

You are correct, hence my suggestion of some structures to enhance this area. There is already gameplay in this area, but it is mostly created outside the game, rather than by using in-game tools.

I'd rather see better share mechanics and trading tools for player run investment schemes than NPC banks. As you mentioned, it's another ISK faucet. There have been concerted steps away from passive ISK making in recent years (think datacore changes). Considering how many people leave game or periodically unsub with their ISK intact it'd just carry on snowballing and exacerbate ingame inflation.

An alternative might be to improve Plex trading (which a lot of people dabble in for investment purposes) by introducing better ingame tools.

If CCP try to create a dynamic investment scheme via NPCs they'll undermine the player run side of it and end up with problems building risk in that players would accept.