Black Banx’s global approach stops it from meeting Western fintech fate
In a time when investors take a cautious approach to fintech, digital banking platform Black Banx is on the path to coming out on top.
It’s clear to see that digitalisation has affected all industries, especially when looking at finance. Services traditionally performed at bank branches can now be provided at the tap of a finger via a smartphone app. But while one financial technology sector, digital banking, thrives, in 2022, levels of global investment in fintech decreased amid economic slowdown. Although the total capital invested in fintech last year reached $92bn, this was a decrease of 30% from 2021. European fintechs raised $2bn in the first quarter of 2023, a drop of 83% from last year, which is less than the total raised from climate tech startups ($2.6bn). A staggering decrease when fintech has secured the biggest slice of venture capital funding in Europe since 2018.
In the UK, digital banks have found themselves under pressure following the collapse of Silicon Valley Bank, who focused a lot of their energy on tech startups. The result has led to higher interest rates and investors being cautious. CEO of investment company Augmentum Tim Levene said at London’s Innovate Finance Conference that we are going to see stories over the next 12 months of businesses that have failed, but that’s part of venture capital. Startups are likely to take further hits. Even popular services are facing hits. Swedish-founded Klarna – who have over 150 million active users – valuation was cut to $6.7bn in 2022, a 85% drop from the year before.
But with traditionally established banks collapsing from the US to Switzerland (Credit Suisse), is there any fintech service that’s succeeding through these times? Due to its borderless and investorless approach, UK-headquartered Black Banx has found itself undeterred even amongst wavering financial support.
Founded by German billionaire Michael Gastauer in 2015, Black Banx customers have access to a range of services that put the company as a leader of the digital banking industry. Private and business clients can take advantage of real time 24/7 currency exchange services, interest savings bearing accounts, international payments in 28 FIAT (government issued currencies) and two cryptocurrencies and real time 24/7 crypto trading services, among others.
Invested in solely by Michael Gastauer, Black Banx has no third party investors, a play that some have criticised them for. The critics have since been hushed by the company’s December 2022 revenue of $1.1bn and 20 million plus customer base. What makes Black Banx so special? It’s a completely global ideology. Whether it be employees working from anywhere or financial services at the tap of a finger, Black Banx prides itself in its global approach. So as the Western world copes with a fintech dip, Black Banx watches as its business succeeds in another part of the world. Asia has found itself rising above the global investment dip.
According to United Overseas Bank (UOB), Singapore has pulled in the most funding in the region coming in at $1.8bn in the first nine months of 2022. And in a report from HSBC, Asia’s financial wealth has tripled since 2006 to $140tn. Analysts expect fintech companies to excel in the region due to climbing incomes and the increased adoption of digital technologies.
Black Banx’s operations have been global in scope since its inception in 2015, and they have a particular strength in the Asia-Pacific region. One reason is likely due to the fact that although parts of Asia are seeing financial increase, 70% of south-east Asia is unbanked or underbanked, meaning a large amount of the population doesn’t have access to financial services. It’s a thriving market for Black Banx as this is part of their target demographic. South-east Asia’s younger workforce and high use of mobile phones puts wealth management in their hands using the form of the Black Banx mobile app. Black Banx provides customers banking access without restrictions based on nationality, country of residence, religion, and amount of funds held or transferred. Its aim is to increase the simplicity of online banking, reduce transaction times and achieve financial inclusion. All of these reasons show that whilst European growth may dip this coming year, the company is likely to generate more of an operating market in Asia-Pacific.
Amid recent banking turmoil, Black Banx’s effortless approach to creating a banking system where money can flow freely from everyone no matter where they are, is what’s stopping them from meeting the same fate as other financial services. Coupled with its lack of third party investors, the digital banking platform will go from strength to strength in 2023. Led by Gastauer, Black Banx has always been where the growth is and evidently, this isn’t about to change anytime soon.