For all the grief that the Covid-19 had caused, among the few silver linings from the global health emergency had been how it had accelerated the shift towards financial technology (fintech) activities. Fintech has since benefited many new users through greater efficiency, transparency, convenience, and enhanced financial inclusion.
While the world has now settled into a “new normal”, it is far from back to the way things were, with the way the world does its banking, and business in general, significantly changed by the time the pandemic drew to a close.
For instance, according to The World Bank, 76% of adults globally in 2021 had an account at a bank, other financial institution, or with a mobile money provider, up from 68% in 2017 and 51% in 2011. In addition, the growth in account ownership was evenly distributed across many more countries. While in previous Findex surveys over the last decade much of the growth was concentrated in India and China, 2021’s survey found that the percentage of account ownership increased by double digits in 34 countries since 2017. As The World Bank is slated to update its Global Findex in 2024 (as it does this every three years), it is highly likely that the new report will show a continued increase in digital banking use since the last report.
What if there is a global health emergency again?
As it stands, Covid-19 reemerging and shutting the world down like it did in 2020 is unlikely, although the possibility of new surges remain.
In the event that this does occur, the fintech industry is expected to be better prepared to address the associated surge in digital banking use. With that said, there would also be a need to set a balance between the fintech innovation that comes with wider usage and the possible costs involving financial stability, consumer protection, cybersecurity, privacy and data protection, and measures to tackle money laundering and terrorism financing.
Ultimately, whether there is a new Covid surge or not, the increase in customers opting for digital banking is expected to continue, with a potential global health emergency just one of many variables.
For one, as populations become younger and more digitally savvy, it is expected that those becoming of legal age to own financial accounts will choose digital banking over traditional banking.
In addition, remote work is seemingly here to stay, with employers hiring talent employees thousands of miles away. This, combined with the ongoing revival of travel, has helped sustain the demand for fintech services.
Black Banx’s unprecedented growth
When assessing fintech in general, growth is seemingly few and far between. Many fintechs, particularly in the west, are experiencing significant dips in their overall valuations, and as a result enduring a funding winter of sorts.
However, there are exceptions, as some companies have managed to welcome new customers and earn substantial revenue.
In just the first half of 2023 alone, the London-based neobank has welcomed over six million new private customers and half-a-million new business customers. This has raised Black Banx’s total customer count to over 28 million private account holders and 2.5 million business account holders.
The company is averaging an estimated 1.3 million new customers per month, a number which could potentially be a little bit higher if there were to be a new Covid-19 surge. Either way, at the rate Black Banx is onboarding new customers, what is likely is that it surpasses the 30 million total customer mark well before the end of 2023.
With a 33% increased onboarding rate compared to the end of last year, Black Banx continues to demonstrate an ability to continue an already rapid expansion into new territories.
Offering personal and business accounts in 28 FIAT currencies and 2 crypto currencies that are accessible across 180 countries, Black Banx makes sending and receiving money and general financial management quick and convenient.
Established in 2014 by Michael Gastauer, the company’s commitment to innovation for the benefit of customers positioned it as a top-of-mind choice for a market with increasing and evolving international banking needs. In the event of a new surge, the fintech infrastructure built by Black Banx within less than a decade is ready to take on a potential boost of customer rates.
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