Banks have been playing an important role in the financial aspect of our lives for ages. However, new technologies like blockchain are substantially changing the way customers interact with the current day banking industry. Firstly, there has been a noticeable increase in online payment transactions, the number of mobile wallet users, and P2P money transfers. While financial inclusion is very important for a developed country, there is a percentage of customers who always manage their money outside the traditional banking ecosystem. And it seems they have all the valid reasons to do so.
Why do Unbanked Customers Avoid Banks?
According to a survey in the United States, the number of unbanked customers is growing every passing year. The 5 reasons cited by the respondents to remain unbanked are:
It is important to note that the traditional banking system is deep-rooted in our daily lives and cannot be uprooted completely. However, a blockchain banking solution holds promise to help end-users of financial services overcome the existing challenges of the banking industry.
Blockchain Banking Solutions are the Future
Crypto banking is a new face in both the banking and cryptocurrency worlds. Merging state-run fiat currency with cryptocurrencies like bitcoin and Ethereum seems to solve lots of existing challenges. As a concept with great potential, crypto banking can beat dedicated crypto exchanges and fiat banks.
What does a Crypto Bank Offer?
As the name suggests, a crypto bank is a platform that works with both cryptocurrencies and fiat. Thus, the foremost thing it must offer is the full suite of banking services. From a single crypto banking app, the user must be able to perform the usual banking tasks, crypto-trading, crypto-transfers, and day-to-day payments.
Multicurrency Support
A crypto bank is capable of operating in fiat as well as for cryptocurrencies. The fiat is stored in a user’s bank account and he can deposit, withdraw, and spend funds just like regular banking.
However, cryptocurrencies are stored in a dedicated wallet. For every user, the crypto bank will provide an individual wallet and public/private key. It is evident that the customers will have complete control of their funds. So using a crypto bank is as easy as any other crypto wallet.
Cryptocurrency Trading Support
Undoubtedly, crypto is the new money if you want to enjoy instant transactions, low-fees transfers, and privacy. Thus, when a customer opts for crypto banking, he automatically signs up for the ability to buy and sell bitcoin from their bank account. No traditional crypto exchange or bank provides this significant advantage. With such an infrastructure in place, the cryptocurrency mass adoption is not far.
Contactless Ways to Spend Crypto
By partnering with the traditional banks, crypto banks add credit and debit cards to their offering. These are fully modern cards that offer contactless payment in both fiat and cryptocurrencies. In addition to that, the cards can also be used to withdraw cash at ATMs. For a cryptocurrency holder, this is a big advantage as he can use crypto in day-to-day life using these cards.
Remittance Accounts
Remittance is one of the biggest segments of the traditional banking setup. Every year, hundreds of billions of dollars move across-borders and the banking system charges hefty fees to make the money move. With a blockchain banking solution, users can enjoy the benefits of a decentralized remittance platform. Such platforms enable quick, secure, and efficient cross-border transactions.
Merchant Payment Gateway
With trade globalization, many traders receive their payments from clients across the globe. A merchant payment gateway on the crypto banking solution offers users an easy and quick way to receive payments from anywhere in the world.
Frictionless Crypto Banking
For frictionless crypto baking solutions, the platform developer must ensure that the traditional banking modules are integrated into the platform. Along with that, it must come with an intuitive front-end and secure API. Such inclusion promises a win-win platform for the operators and the end-users.
