Financial technology, or fintech, is far from a new concept. Its origins harkens back to the advent of computer systems and the growth of electronic banking in the financial services industry in the 1970s and 1980s. Since then, fintech has grown and evolved over time as a result of the continued advancement of technology. As a result, new financial services and products continue to emerge with the intent of enhancing accessibility, simplicity and effectiveness in the financial services industry.
The 2008 global financial crisis aided this growth by increasing customer demand for non-traditional banking and financial services. Enabling customers to access financial services by computers and mobile devices had also fueled the growth of the fintech industry, and the demand for this substantially grew by leaps and bouts at the peak of the recent Covid-19 pandemic.
According to Black Banx founder Michael Gastauer, fintech continues to redefine finance, and is driving innovation in areas such as payments, lending, investing and insurance.
Increased Accessibility and Affordability
Technology is the key driver of fintech, and it is through the continued advancement of various software and other technologies that fintech companies are able to streamline processes and reduce costs, which in turn can lead to lower fees and more affordable financial products and services for consumers. For Black Banx, fintech is being leveraged to take this ease in banking to a global scale.
“For our team, money is meant to be like water, flowing freely and being accessible for everyone. Unfortunately, as much of an everyday item as water, it hasn’t been the easiest to use or access, particularly across different countries. Fortunately, technology has made this possible, and at Black Banx, we see no reason why customers should not be able to transact internationally as they do locally.”
Expanding Financial Inclusion
Apart from making banking services easier to use for existing customers, fintech has also made the aforementioned services more accessible to underserved populations that have traditionally had limited access to financial services which, according to the Center for Financial Inclusion, is presently at 1.7 billion people and counting.
“With Black Banx, among our aims has always been to continue providing the unbanked with essential financial tools via fintech solutions, bridging the gap between them and traditional banking, leading to increased economic prospects, especially in areas with restricted banking access. By constantly creating and evolving borderless banking solutions, we are ready to change local finance for most countries, with everything just being a matter of how quickly some of them can improve their internet penetration.”
Reducing the Cost of Financial Services
Among the major reasons why Gastauer established Black Banx had been the cost of transacting internationally. According to The World Bank, the average money transfer is roughly 6% of the amount being sent, or essentially US$60 for every US$1000 transaction. By continuing to simplify the processing of digital payments, fintech companies like Black Banx are able to offer lower costs than traditional financial institutions because they have lower overhead expenses.
“Among Black Banx’s significant achievements is transforming cross-border payments. By leveraging and connecting through the Black Banx platform, local real time settlement systems in various countries can facilitate quick, cost-effective international money transfers, setting a new standard in the industry.”
While the innovation occurring in fintech remains to be seen, there is indeed good reason why fintech revenues are projected to grow sixfold from $245 billion to $1.5 trillion by 2030. Customers’ digital banking needs continue to evolve along with technology, and as products, services, employment, and other aspects of everyday life find newer ways to be online, more and more people will want and need to transact digitally.
The likes of Black Banx will be ready, as the Toronto-based global digital bank maintains a commitment to innovation to best ensure that it keeps up with the growing requirements of an increasingly digital-savvy customer base.
“We’re always open to exploring emerging technologies, like we do with blockchain, AI, and machine learning, if it means being able to help reshape the financial sector for the better. By continuing to employ cutting-edge technology and entering strategic partnerships, Black Banx looks to eliminate the traditional hurdles connected with international financial transactions and make for the facilitation of international money transfers that are both quick and inexpensive.”
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