The 21st century saw the conception and rise of the fintech industry. Though it has been decades since fintech companies joined the competition in the global banking scene, their presence is more evident now than before. Mobile banks, crypto wallets, e-wallets, budgeting apps, and other online payment solutions have been catapulted to the spotlight ever since smartphones and digital devices became ubiquitous.
The combination of streamlined financial services with advanced technologies allows fintech companies to be more efficient in cost and operation, attracting more consumers to join this revolutionary trend in the world of banking and finance.
Black Banx: A Trailblazer in Fintech
Fintech, which is short for financial technology, is commonly used to describe new technological advancements that seek to improve, automate, and enhance the delivery and use of financial products and services. At its core, fintech helps companies, business owners, and consumers make informed decisions about their finances and better manage their financial operations and obligations, according to Investopedia.
Since all of its services are offered digitally, the fintech industry relies on specialized software and algorithms that can be run and accessed via computers and smartphones. Years ago, the term fintech was only applicable to the technology utilized at the backend systems of banks and financial institutions. However, due to the rapid developments in financial technology, fintech now covers a multitude of sectors in society, including education, retail banking, investment management, and nonprofit organizations, among many others.
Unbeknownst to many, the more modern version of fintech was catalyzed by a startup founded by German billionaire Michael Gastauer. Named Black Banx, the company melds the best of mobile banking, digital banking, and cryptocurrency exchange to form a solid platform for online financial transactions. Unlike other fintech brands on the market, Black Banx is designed to disrupt if not take over traditional banking and offer a more customer-centric approach to modern-day finance. It’s one of the few firms to target the global market since day one. As such, it’s also one of the handful of fintech firms to emerge at the top of the global banking industry.
Fintech Innovation: a Threat to Global Banking?
The 2007-2008 financial crisis changed the traditional banking system forever. But more than the retrenchments and intensified regulations, the advent of mobile information technology that came after it paved the way for a new generation of financial services companies to thrive. Fintech blossomed into an industry boasting innovative technologies and more advanced business models for financial services to prosper and be more accessible even in places where traditional banks are hesitant to penetrate.
With fintech, new online banking platforms offer alternative models of financial management. This is made possible by the technological advancements utilized by fintech firms, such as artificial intelligence, machine learning, and blockchain. Such technologies allow fintech companies to thrive and get traction since the financial services they can provide are better and more efficient than those available at traditional banks. For instance, blockchain technology revolutionizes how parties send digital assets in a decentralized system, giving consumers a more efficient payment infrastructure, according to Medium.
More than the advanced financial solutions and more cost-effective banking alternatives, fintech innovation is promoting financial inclusion for consumers and small to midsize businesses. In the past, places without access to traditional banks were cut off from the financial market, making it impossible for their residents to take part in the global banking sector. Mobile money platforms under fintech are changing this by providing unbanked consumers access to the global finance industry. Not only are they able to use the different financial services available online, but they can also enrich their understanding of what banking really is through their experiences using these fintech platforms. So to answer the question, financial innovation is not a threat to global banking. It’s actually here to enhance the overall user experience.
Expanding Horizons with Fintech
Fintech innovations have undeniably affected traditional trading and banking in general. As a disruption to the age-old system of financial organization, the burgeoning industry opened the doors to a more financial-inclusive system that also upholds borderless banking. Gastauer and his digital bank Black Banx played a big role in this disruption since they were one of the first to incorporate different financial technologies into a single platform. Black Banx does not only serve as an online bank. It can act as a mobile bank, digital trading system, crypto exchange, and so much more because of how well-rounded it is compared to its rivals.
As of late, Gastauer is banking on the next developments in blockchain and AI to further enhance Black Banx. Aside from looking into additional cryptocurrency support, it is venturing with predictive behavioral analytics and data-driven marketing to arm Black Banx’s platform with learning functions, so users won’t have to spend much time on the guesswork involved in making financial decisions. In a press release published last month, the Canada-based company indicated that it is tailoring existing solutions and potentially introducing new offerings aligned with the regional-specific needs of its clients.
For the past several years, Black Banx focused on setting up offices in key markets, including Japan, China, Russia, Brazil, and more. Starting this 2024, it is redirecting its efforts into building a robust international network of infrastructures that utilize advanced technologies to ensure that its banking software will remain secure and seamless. Gastauer’s neobank also stated that it is going to simplify transactions within its platform and open new venues for global trade and commerce. The end goal is to make Black Banx a one-stop shop for global banking solutions that can empower consumers to manage their finances effectively.
