The 21st century has seen the birth and rise of the fintech sector. Although decades have passed since fintech companies entered the competition on the global banking scene, their presence is more evident today than before. Mobile banks, crypto wallets, e-wallets, budgeting apps and other online payment solutions have been catapulted into the spotlight since smartphones and digital devices have become ubiquitous.

Combining simplified financial services with advanced technologies allows fintech companies to be more efficient in terms of costs and operations, attracting more consumers to join this revolutionary trend in banking and finance.

Black Banx: a pioneer 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. Fundamentally, fintech helps businesses, entrepreneurs and consumers make informed decisions about their finances and better manage their financial operations and obligations, according to Investipedia.

Because all of its services are offered digitally, the fintech sector 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 technology used in the backend systems of banks and financial institutions. However, due to rapid developments in financial technology, fintech now covers a multitude of sectors of society, including education, retail banking, investment management, and non-profit organizations, among many others.

Unbeknownst to many, the most modern version of fintech was catalyzed by a startup founded by German billionaire Michael Gastauer. Named Banx Black, the company combines the best of mobile banking, digital banking and cryptocurrency exchange to form a robust platform for online financial transactions. Unlike other fintech brands on the market, Black Banx is designed to revolutionize or even replace traditional banking and offer a more customer-centric approach to modern finance. It is one of the few companies to target the global market from day one. As such, it is also one of the few fintech companies to emerge at the top of the global banking industry.

Fintech innovation: a threat to the global banking sector?

The financial crisis of 2007-2008 changed the traditional banking system forever. But more than the cutbacks and tightening of regulations, the advent of mobile information technology that followed paved the way for a new generation of financial services companies to thrive. Fintech has become an industry that boasts innovative technologies and more advanced business models so that financial services can thrive and be more accessible even in places where traditional banks hesitate to penetrate.

With fintech, new online banking platforms offer alternative financial management models. This is made possible by technological advancements used by fintech companies, such as artificial intelligence, machine learning, and blockchain. Such technologies allow fintech companies to thrive and gain traction because the financial services they can provide are better and more efficient than those available at traditional banks. For example, blockchain technology revolutionizes the way parties send digital assets in a decentralized system, offering consumers a more efficient payment infrastructure, according to medium.

More than advanced financial solutions and more convenient banking alternatives, fintech innovation is promoting financial inclusion for consumers and small and medium-sized 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 in fintech are changing the game by providing unbanked consumers with access to the global financial sector. Not only are they able to use the different financial services available online, but they can also enrich their understanding of what banking is really about through their experiences in using these fintech platforms. So, to answer the question, financial innovation is not a threat to the global banking system. It is actually here to improve the overall user experience.

Broadening horizons with Fintech

Fintech innovations have undeniably influenced traditional commerce and the banking sector in general. By disrupting the age-old system of financial organization, the thriving sector has opened the doors to a more financially inclusive system that also supports borderless banking. Gastauer and his digital bank Black Banx played an important role in this revolution as they were among the first to incorporate different financial technologies into a single platform. Black Banx doesn’t just act as an online bank. It can serve as a mobile bank, digital trading system, cryptocurrency exchange and much more thanks to its completeness compared to its rivals.

Recently, Gastauer points to upcoming developments in blockchain and artificial intelligence to further improve Black Banx. In addition to looking into further support for cryptocurrencies, he is venturing into predictive behavioral analytics and data-driven marketing to equip Black Banx’s platform with learning features, so users don’t have to spend a lot of time on the guesswork involved in making financial decisions. In a Press release released last month, the Canada-based company indicated that it is adapting existing solutions and potentially introducing new offerings in line with the specific regional needs of its customers.

In recent years, Black Banx has focused on establishing offices in key markets, including Japan, China, Russia, Brazil and others. Starting in 2024, it is redirecting its efforts towards building a robust international network of infrastructure that uses advanced technologies to ensure its banking software remains secure and uninterrupted. Gastauer’s neobank also said it will streamline transactions within its platform and open new venues for global trade and commerce. The ultimate goal is to make Black Banx a one-stop shop for global banking solutions that enable consumers to manage their finances effectively.

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