Last Updated on: 21st November 2023, 09:03 pm
The fintech cohort is not short of users when looking at global data. With an annualised growth rate of 16% compared to 1.3% for small and medium-sized enterprises over the last decade, fintech’s key players are bound to keep growing. Black Banx Billionaire Founder Michael Gastauer has already invested more than US$380 million into his digital banking service, so it shouldn’t be surprising that the company is valued at $50bn. British-Lithuanian banking service Revolut has been valued at $33bn, putting the industry leader in second place behind the lesser-known Black Banx.
With no 3rd party investors, Black Banx shrines itself in independence and mystery. But with a $1.1bn revenue as of Dec. 2022, it may be time for the Group to reach the limelight. Black Banx has grown from 200,000 to 20 million customers in eight years, with Revolut reporting 25 million retail customers last year.
To compare, British high-street bank Barclays reported 48 million customers in 2022. While this is more than Black Banx and Revolut together, it’s important to note that Barclays is a well-established worldwide name founded in 1690 – these customers are often long-standing. The truth is fintech is taking over traditional banking.
Branch-based banking was untouched until exciting advances in technology in the 1990s. Since then, the digitisation of banks has steadily increased. An estimated 24% of Brits have a digital-only bank account, compared to 9% in 2019. The invention of the smartphone was the foundation for mobile banking and has made digital banking what it is today.
The rise of digital banking
2011 – First Direct (a HSBC division) were the first to launch a mobile app in the UK, followed by Natwest.
2012 – Dutch online banking service Knab is launched in the Netherlands and Alior Sync in Poland.
2013 – German Neobank N26 gets its banking licence. Hello Bank launches in France and mBank in Poland.
2014 – Apple Pay is launched, a revolutionary way to purchase goods directly through an Apple smartphone.
2015 – Black Banx is launched to private and business customers in 180 countries.
2016 – Revolut and Monzo launch in the UK. In 2018, Monzo raised a record-breaking £1 million in 96 seconds via the crowdfunding platform Crowdcube.
In 2019, Mastercard reported that digital banking had become part of everyday life for Europeans. 63% used mobile banking apps from traditional banks, and one in five from digital-only banks. As of 2023, 24% of Brits have a digital-only bank account. Meanwhile, Britain’s most popular bank, Barclays, will close 41 branches this year. Alternative high street banks HSBC and Halifax are also closing many branches throughout the UK. But why are people shunning traditional financial institutions for digital ones?
Digital banking is more convenient, secure, and less time-consuming for users. Its benefits became apparent during the Covid-19 pandemic. With branches closed and cash being denied, many sought digital banking to manage their finances and have stuck with it ever since.
With Black Banx, customers don’t need to visit a physical branch with documentation to create an account; they only need to complete a quick online form with a passport or driver’s licence handy for ID purposes. Completed in minutes, with no need to carry cash around and automatic access to a smartphone app, it’s clear to see why digital banking is taking over.
Why choose Black Banx?
The digital banking service offers a range of features focusing on establishing a global banking platform that anyone can use. They currently offer private and business accounts in 28 FIAT and 2 cryptocurrencies, international transfers with a flat fee, inter-platform instant payments in 28 FIAT and 2 cryptocurrencies, a multi-currency debit card, real-time 24/7 currency exchange service, 24/7 crypto trading services and interest-bearing savings accounts in EUR, USD, JPY and GBP.
What does the future look like for digital banking and Black Banx?
It is said that 80% of banks will offer digital services by 2025, up from 60% in 2018. With digital-only banks reaching those typically left behind, they are expanding to places traditional banks can’t. A smartphone, a form of photo ID and a decent internet connection is required for signing up to platforms like Black Banx. This no-fuss approach allows customers worldwide to manage money on the go.
Cryptocurrency’s global market value is expected to continue expanding at a compound annual growth rate of 12.5% between 2023 and 2030, and Black Banx has already uniquely tapped into this market. Offering clients autonomy by connecting the Group’s fully fledged platform with the features of crypto exchange enables Black Banx clients to use crypto balance and pay third parties directly from the platform. As cryptocurrency grows, don’t be surprised to see Black Banx’s user base grow alongside it.
The online shift of financial services doesn’t seem to be slowing down anytime soon. Traditional banks either need to adapt or fall behind, especially as Black Banx aims to increase its customer base by over 5 million by the end of the year. The future of digital banking is all about growth.