Fintech Winning Account Opening War With Black Banx

Over the last few years, the finance world has witnessed a decline in need for traditional banks and an increase in fintech companies. Now, a new study from Cornerstone Advisors has found that in the checking account market, fintech is winning. And one industry leader is London-headquartered Black Banx. Aiming to provide a borderless digital bank, Black Banx has amassed over 20 million customers with operations in 180 countries, a true testament to their growth.

According to an article by Forbes, this is what’s going on in the checking account market across the United States:

• Digital banks and fintechs dominate new checking account opening with them receiving 47% of new account openings in the first half of 2023.
• Digital banking growth is at the expense of traditional banks. Since 2020, fintech’s share of new accounts grew from 36% to 47%. Throughout the same time period, the share of large banks dropped from 24% to 27%.
• Paypal and Chime are dominating the digital bank and fintech sector. Large traditional banks, SoFi and Wells Fargo are losing customers to fintech giants.
• Young consumers are shaping the market. Of Americans that have opened a checking account so far this year [2023], 72% identify as Gen Z/Millennials.

The data suggests a few key points. Digital banking is more popular than ever and young people are at the foundations of this.

For Black Banx, they are to reap the benefits of this. Being less than a decade old, they already have a reported revenue of $1.1bn USD, a great statistic for a company that tends to avoid the media spotlight.

What we’re likely to see is Black Banx growing exponentially this year. With their digital banking mission being to provide financial services to anyone globally and having an emphasis on a borderless approach, Black Banx has become a top choice for those that have access to a mobile phone. Wealth can be managed and funds transferred using the Black Banx app, which is available on both Apple and Android. Being easily accessible and needing only a form of photo ID to create an account, it’s not a shock to see Black Banx so high up in the digital banking world.

The idea that digital banking is growing at the expense of traditional banks is true even across the pond in the UK. British high street banks are having to close branches due to move from traditional to online banking. Many blame the likes of Covid as millions were required to stay at home during nationwide lockdowns, it’s not a surprise that people turned to online banking. Of course large, traditional banks will always keep loyal customers. The problem is that digital banks are seeing a growth in new customers, whereas traditional banks are witnessing a stagnation in the same area. It’s not uncommon for Gen Z and Millennials to have both a traditional and digital bank account at the same time. But why have both?

It’s typically a lot faster to open an account via a digital bank, as is the case with Black Banx. Customers don’t need to provide heaps of information. Digital banks also provide more modern features and services, which especially caters to the younger generation that we’re seeing be the driving force for digital banks taking the reign on new account openings. For example, the likes of UK-based Monzo allows customers to choose a package that includes worldwide travel insurance, technology insurance and larger interest savings accounts. Black Banx allows customers to use both a physical and virtual debit card, freely convert currencies between accounts for bank interchange rates and send and receive payments worldwide using the Black Banx instant fund crediting tools.

Looking at the new data, it will be interesting to witness if the world’s most successful digital banks and fintech companies take a new approach in the second half of 2023. Black Banx continuously keeps up with ongoing trends and data points in the financial sphere thanks to its founder and CEO, Michael Gastauer. Gastauer solely invested in the company, not wanting to have interference with third party investors and slowing down his startup process back in 2014, and it’s clearly paid off. Having decades of experience in finance and building businesses, Black Banx has one of the best leaders in the industry.

When approached for comment the German native said, “To me, Black Banx is one of a kind. I wanted to produce a financial service that caters to all walks of life, with a large focus on the unbanked and underbanked in the developing world. We offer accounts for individuals and businesses, and products and services ranging from basic digital banking to an integration of crypto within the Black Banx platform. I’m proud of it, I really am. I’m looking forward to seeing what we can do with the company in the years to come, as it continues to grow.”