Reasons Why Crypto Friendly Neobanking Solution Is Gaining Popularity

The ebb and flow of bitcoin are shifting.

Daily Bitcoin transactions surpassed 400,000 in the first quarter of 2021; China conducted the second trial of its digital currency; and the worldwide market is expected to reach $1087 million by 2026.

Cryptocurrencies are becoming increasingly popular. What are the advantages of integrating crypto friendly neobanking solution in a business?

Before moving further, let’s discuss why the demand for cryptocurrency investments is growing rapidly.

The demand is increasing for three reasons: savings rates are low, crypto promises to tackle critical problems, and investors had disposable income during the pandemic and were eager to invest.

Every day investors are fed up with bank interest rates of 0.01 percent and government bonds that are stuck in a rut. So, what are they going to do now? Cryptocurrencies.

According to a recent report, around 55% of cryptocurrencies have been brought only in the last 6 months. The major reason why people are lured to buy cryptocurrencies is that it appears to be a better method to make their money work for them than alternative financial assets (such as equities or gold) or financial products (such as savings accounts) (43 percent)

Before 2020, it was possible to argue that cryptocurrency was not an important asset. However, with institutional investors adding Bitcoin to their portfolios and countries developing their own digital currencies, crypto is on the rise in 2021.

Why Neobanks should meet the demand?

Neobanks and fintech businesses are well-positioned to meet that demand. Fintech businesses such as Revolut, Square, and Paypal have already begun to provide cryptocurrency investing through their apps. The following are three major causes behind this:

– It Generates a new Source of Revenue
It’s common knowledge that many fintech companies struggle to make a profit, particularly in Europe where interchange is low.

FinTechs and neobanks can use a cryptocurrency exchange to diversify their revenue streams. FinTech firms can either package it as a premium product and charge consumers a monthly fee, or profit from the spread between purchasing and selling different cryptocurrencies.

– Attracts New Customers
The number of crypto investors in the world is growing at a fast pace. Many retail investors want to start investing in bitcoin and will likely choose a FinTech business that matches their needs. It’s more likely that they’ll choose a FinTech company if it offers crypto trading.

In fact, many investors want to buy crypto banking solutions to thrive in the crypto world.

Retain your current customers
An effective crypto exchange will keep your present clients satisfied, just like it will keep new customers happy. Customers will no longer need to download and use a separate app in order to use cryptocurrencies; instead, they will be able to do so immediately from their favorite FinTech.

According to research, 20% of Paypal users have traded Bitcoin on the platform. Customers have logged in twice as much in Paypal’s app since the crypto trading platform began, according to the company. Adding a cryptocurrency exchange is a great method to boost client retention.

Neobanks are the Future of Digital Transactions

Cryptocurrencies are indeed the future of money. As we know both assets or currencies play a significant role in the future of money, cross-border transactions, and monetary policy.

FinTech firms and neobanks are already positioning themselves as the future of banking, the democratization of money, and the most effective approach to meet client demands. As a result, it only makes sense to carry on with the branding by including bitcoin and decentralized money.

If you are also planning to provide your users with a highly secure and reliable banking platform, then integrating crypto friendly neobanking solutions in your business is the best bet for you. We at Antier Solutions, provide white label crypto neobanking solutions to help you launch your own digital banking platform.

Schedule A Free Demo of our white label crypto-friendly banking platform or connect with our subject matter experts to share your business needs.