Digital banks and traditional banks target the same consumers, but the former is more innovative than the latter in bringing financial inclusion to the four corners of the world. With easier sign-up and onboarding processes and more accessible services, digital banks are considered more appealing than traditional banks, especially for the tech-savvy generation of consumers. It goes without saying that digital banking is slowly becoming the standard in the world of finance. After all, major consumer services and businesses have already caved into digitalization, and everything is now within reach via the Internet.
Black Banx: The Epitome of Digital Banking
Founded by German billionaire Michael Gastauer in 2014, Black Banx is the embodiment of digital banking. The fintech brand is one of the first digital-only banks to offer standard banking services and advanced cryptocurrency solutions in one platform. Designed for the modern consumer, Black Banx simplifies banking by providing clients access to premium online and mobile banking services via its website and mobile application. At the same time, users have the option to request physical debit cards should they wish to enjoy a more physical experience whenever they transact with their Black Banx account.
It’s not surprising that Black Banx has a lot of rivals in the digital banking industry as more banks and financial institutions have also realized the potential and great demand for seamless internet banking with the advent of the digital age. Many of them offer almost similar services, but what sets Black Banx apart from them is its commitment to global financial inclusion. Unlike its competitors that are mostly localized or region-specific, Gastauer’s neobank launched with a global reach, serving 180 countries and territories across the globe. This is perhaps what makes Black Banx the epitome of digital banking.
Traditional Banking in the Modern Age
While digital banks like Black Banx are thriving in the modern age, traditional banks are said to be struggling to keep up with the changing demands of consumers. A study published in the Research Papers in Economics database highlights how traditional banking systems find it hard to transition and embrace the new era of digitalization, which is marked by booming artificial intelligence technology. For one, customers have changed their perspectives and behaviors toward offline and physical banking. The study also underscores how the collaboration of some banks with robo-advisors or fintech has given rise to alternative financial solutions that go well with e-commerce and other business transactions only available online.
Another global study by IBM, the Banking Industry Architecture Network, and Red Hat also sheds light on the plight of traditional banks in the modern world. Per the findings, long-existing physical banks find it hard to meet customer expectations with their slow adoption of modern financial technologies and the lack of industry standards in the digital banking realm. Many of them have already invested and tapped into third parties just to become part of the financial journeys of modern consumers who are now too engrossed in what fintech firms, e-wallets, and other digital banking platforms offer.
Black Banx vs. Traditional Banking
Comparing traditional banks with Black Banx—the paragon of digital banking—may seem unfair, knowing that the latter has the bigger advantage in many aspects. However, doing so is necessary to explain why Black Banx is gaining traction now and emphasize what makes it the best banking option for modern consumers. Because apart from its breezy sign-up process, Black Banx hosts a myriad of other features, services, and advanced solutions that significantly contribute to the impeccable user experience its platform provides. Below are some of the reasons why many people are switching to Black Banx’s all-digital experience.
Cost-efficiency: Due to operating costs like rent, manpower, and equipment, traditional banks charge customers with fees on some transactions made by their account holders. For instance, they may charge them for simply checking their balance or withdrawing cash via an ATM. On the other hand, Black Banx has fewer worries when it comes to operational expenses since the platform is fully digital. This explains why the Canada-headquartered fintech firm only has flat fee rates for transactions done on its website or mobile app.
Convenience: More than its accessibility, Black Banx is renowned for its convenience as it distinguishes itself from traditional banks and rival fintech firms by offering instant account opening, real-time global fund transfers, and seamless crypto deposits and trading. Leveraging state-of-the-art technology, the platform facilitates cross-border payments, promoting financial inclusion on a global scale. In contrast, traditional banks, although striving to integrate digital innovations into their services, still rely on physical locations for various banking transactions. While this traditional approach fosters in-person interactions and personalized services, it may pose challenges for clients seeking instant access to banking services without the constraints of time and location.
Crypto Trading: One feature that really gives Black Banx a solid edge over traditional banks is its support for cryptocurrencies. Since 2016, the fintech brand has been offering cryptocurrency as a deposit method, but only for Bitcoin and Ethereum. In 2018, Black Banx launched its in-platform crypto exchange service, where customers can engage in crypto trading. On the contrary, most traditional banks are still not open to the idea of digital currencies, thinking that they don’t hold value in the real world.
Interest Rates: The disparity in operating costs between Black Banx and traditional banks profoundly influences the interest rates offered on deposit accounts. Traditional banks, constrained by higher operational expenses, typically offer a modest interest rate of 1%, limiting the growth potential of customers’ savings. Meanwhile, Black Banx utilizes its cost-efficient operational framework to offer competitive interest rates on deposit accounts, ranging from 1% to 1.95% depending on account tier. This helps clients maximize their savings and achieve their financial goals faster.
Customer Service: While Black Banx excels in providing a seamless digital banking experience, it also prioritizes customer service and support. Through its dedicated online channels (email and live chat), customers can access round-the-clock assistance from knowledgeable banking professionals. Whether it’s resolving a technical issue or seeking financial advice, Black Banx ensures that customers receive prompt and personalized support tailored to their needs. As for traditional banks, they require face-to-face interactions to cater to their clients’ inquiries. Although this human-centric approach fosters trust and loyalty among customers, it is not as convenient and may require a lot of time and effort depending on the number of people at the bank.
The Verdict
Digital banks, as epitomized by Black Banx, have the upper hand in the global financial market. Not only do they revolutionize the banking landscape by offering unparalleled accessibility, cost-effectiveness, and convenience to customers, but they also have what it takes to better cater to the dynamic needs of the modern generation. And while traditional banks may continue to appeal to those who value in-person interactions and personalized service, Black Banx offers a compelling alternative for tech-savvy customers seeking a seamless and innovative banking experience in the increasingly digital era.