While the gains of the financial technology industry are considerably second to none in terms of both innovations and revenue, it also cannot be ignored how much work it has ahead of it in terms of improving financial inclusion.
According to a report byMcKinsey & Company, titled “What is financial inclusion?”, published in August of last year, nearly 1.5 billion people in emerging economies lack access to formal savings and credit, relying instead on cash transactions and informal lending networks. This situation hinders their ability to save, invest, and access affordable credit.
In addition, while considered a wealthy nation, the U.S. faces significant challenges in financial inclusion. A survey done byMcKinsey revealed that only half of 25,000 Americans surveyed could cover expenses for more than two months if they lost their job. Millions are underbanked, relying on costly financial services like money orders and payday loans.
With that, it remains paramount that existing and aspiring fintechs look to more than just creating revenue from an industry that is expected to reach a market value of over US $882.30 billion by 2030. Fortunately, there are the likes of global digital banking company Black Banx that had been founded and built on the foundation of easing financial access for customers all over the world.
The Beginning of the Pursuit of Financial Inclusion
In mid-2013, German billionaire Michael Gastauer was grappling with the inefficiencies of cross-border banking and international wire transfers. Frustrated but inspired, Gastauer saw an opportunity to disrupt the traditional banking sector. He envisioned a platform offering instant account opening and real-time global fund transfers in multiple currencies, both FIAT and crypto.
This vision materialized as Black Banx, initially launched as WB21. Gastauer’s foresight in recognizing the potential of digital banking at a time when the industry was still nascent set the stage for Black Banx’s innovative approach. His decision to hire a team of senior software experts to build this platform laid the foundation for a service that would later transform the banking experience for millions worldwide.
Establishing Reach as Early as it Could
Black Banx’s journey from its inception to becoming a fintech powerhouse is nothing short of meteoric. In just a year after its public launch in 2015, it attracted over 200,000 customers. By 2016, it was pioneering in the crypto space, offering cryptocurrency as a deposit method and expanding its customer base to a staggering one million.
The following years saw geographical expansion and a burgeoning customer base, reaching 20 million by the end of 2022 and over 33 million in 2023. This rapid growth was fueled not only by the innovative services offered but also by strategic expansions into new markets like Singapore, Brazil, India, Russia, UAE, and South Africa. The company’s ability to adapt to different market needs and regulatory environments played a crucial role in its global success.
Focusing on Financial Inclusion Through Comprehensive Offerings
What sets Black Banx apart is its commitment to financial inclusion. Gastauer’s vision extends beyond mere banking services. He aims to bridge the gap between the unbanked and traditional banking, especially in regions with limited access to financial services. Black Banx’s approach is inclusive, offering:
- Accounts in 28 FIAT and 2 cryptocurrencies.
- Services to private and business clients from 180 countries.
- Instant international and inter-platform payments in multiple currencies.
- Diverse debit card options and real-time currency exchange.
- Crypto trading services and unrestricted payouts.
- Interest-bearing savings accounts and bulk payment solutions for businesses.
This inclusive approach continues to be particularly impactful in regions where traditional banking is inaccessible or inefficient. By offering services like multi-currency accounts and international payments, Black Banx is not just a bank; it’s a lifeline for businesses and individuals in these areas. The company’s expansion into cryptocurrency further demonstrates its commitment to providing cutting-edge financial solutions, catering to a growing market of digital-savvy customers.
The Impact of Financial Inclusion
Financial inclusion, as defined in the previously mentioned report by McKinsey, is about providing access to financial services that enable wealth building, like savings, credit, and insurance. It’s a crucial factor in economic growth and stability. Black Banx’s model aligns perfectly with this, offering services that empower individuals and businesses, especially in underbanked communities.
The company’s efforts in promoting financial inclusion are not just about expanding its customer base; they represent a significant step towards reducing the global wealth gap. By providing accessible financial services, Black Banx is enabling individuals and businesses in emerging markets to participate more fully in the global economy.
Challenges and Opportunities
Despite the progress, challenges remain. Racial disparities in financial access, particularly in the U.S., highlight the need for more inclusive financial services. Black Banx’s expansion into regions like Africa, where 45% of adults lack financial services, is not just a business move; it’s a step towards addressing these disparities.
The company’s approach to financial inclusion also addresses issues like the racial wealth gap in the United States, where black communities have historically faced barriers to accessing financial services. By providing an easy sign-up process and a wide range of financial services, Black Banx is helping to level the playing field.
Innovation at the Core
Innovation is at the heart of Black Banx. The company leverages emerging technologies like blockchain, AI, and machine learning to stay ahead in the fintech industry. This forward-thinking approach ensures that Black Banx isn’t just keeping up with industry trends but is actively shaping them. The launch of a fully-fledged cryptocurrency trading platform in 2018, featuring BTC and ETH, is a prime example of how Black Banx is at the forefront of integrating new technologies into traditional banking services. This commitment to innovation not only enhances the customer experience but also positions Black Banx as a leader in the rapidly evolving world of digital finance.
What Lies Ahead
Looking forward, Gastauer’s next steps are clear. With plans to enter the U.S. market and a focus on expanding in Africa, Black Banx is poised for even greater growth. The company’s strategy of geographic diversification and service expansion, coupled with a customer-centric approach, positions it to continue its trajectory of success.
Gastauer’s vision of buying a federal bank in California and his focus on the West African market underscore his commitment to not just growing Black Banx, but also to making a tangible impact on financial inclusion globally. As Black Banx continues to expand, it’s set to redefine the boundaries of what a digital bank can achieve in terms of reach and impact.
Michael Gastauer and Black Banx’s journey is a testament to the power of vision and innovation in driving financial inclusion. By providing accessible, efficient, and inclusive financial services, they are not just succeeding as a business but are making a significant impact on the lives of millions. As Black Banx continues to grow and expand, it stands as a beacon of what is possible in the world of fintech, demonstrating that financial services can and should be accessible to all. The company’s journey is a blueprint for how technology and a commitment to inclusion can transform an industry and empower communities worldwide.
