On pace for a record year, there is plenty on the fintech horizon for the Toronto-based digital global banking platform
While the remains over a quarter left in 2023, it can be easily categorized as early as not that it has easily been one of the most eventful for the fintech industry.
Whether it’s the collapse of Silicon Valley Bank, Swiss investment bank UBS Group AG agreeing to buy Credit Suisse via an all-stock deal brokered by the government of Switzerland and the Swiss Financial Market Supervisory Authority, or the likes of
Revolut and Crypto.com exiting the US market, 2023 can be best described as a down year.
Despite the generally tumultuous landscape however, fintech has also had its bright spots. According to Statista, the Digital Banks market worldwide is projected to grow by 13.39% (2023-2028) resulting in a market volume of US$1219.00 billion in 2028.
Among the primary reasons for the sustained growth of digital banks despite economic challenges is the increasing adoption of digital technologies and the changing preferences of customers, especially millennials and Gen Z, who are more likely to use digital channels for their financial transactions.
Digital banks in tune with these evolving needs have been able to capitalize on the trend by offering simple, yet specific, and convenient mobile and online banking services.
Among those successfully doing so has been Black Banx.
Established in 2014 and subsequently launched to the public in 2015, Black Banx has been one of the few fintechs to successfully maintain its growth trajectory despite the challenges brought about by the pandemic and the economic downturn that followed.
In the first half of 2023 alone, the company founded by German billionaire Michael Gastauer has welcomed over six million new retail customers, and over half a million new business customers. Averaging an estimated 1.3 million new customers this year, Black Banx is in position to have a total of over 30 million total retail customers well before the close of 2023.
A great deal of Black Banx’s growth has largely been due to its extensive reach. Global in scope since its launch, the company offers private and business accounts in 28 FIAT currencies and 2 crypto currencies across 180 countries. As returns in travel, remote work, and e-commerce reshaped the economy following the pandemic, Black Banx was at the ready, providing financial management tools for travelers, remote employers and employees, and international businesses and their customers.
With a 33% increased onboarding rate compared to the end of 2022, Black Banx demonstrates its ability to continue an already rapid expansion into new territories.
“Especially with the recent launch of our West African branch in Liberia, we are seeing increased business growth in that region,” commented Regional Chief Executive Officer MEA, Jabari Walker.
The number of Black Banx’s business clients increased by 16% overall, and notably by 28% in the Middle East and Africa (MEA) region. The company considers the increase in business clients as a positive growth indicator and it validates that Black Banx’s business offerings are extremely valuable. The group helps entrepreneurs focus more time on their business by reducing banking troubles.
Black Banx´s financial growth has already been very satisfying for its shareholders after the group announced its annual revenue for 2022 reaching US$1.1 billion. During the company’s record first half of 2023, its revenue grew by 47% to US$997 million, an almost 50% increase from the US$680 million it earned six months prior.
According to Group Chief Financial Officer Alexander Johnson, “Black Banx is well prepared to reach its annual revenue forecast for 2023 of US$1.9bn and has a good chance to improve its profit margin even further.”
The key regions in which Black Banx operates and generates its revenue are the APAC (Asia Pacific, 33%), LACAR (Latin America and Caribbean 28%), and NA (North America, 21%). This is followed by MEA (Middle East Africa, 12%) which has grown significantly into this year, and rounded out by EEA (Europe, Iceland, Norway 6%).
While Black Banx’s base in Toronto has made it relatively easy to maintain a presence in North America, the company sees a focused expansion into the United States in the immediate future.
With major fintechs like Revolut exiting the American market due to a lack of willingness to face the challenges around the regulation of cryptocurrency in the Western market, Black Banx observes a key gap in the market that will be filled.
According to Michael Gastauer, “Black Banx was established to ease international transactions and global digital banking in general, and expanding our presence in the U.S. is our way of ensuring domestic customers are able to send and receive money locally and internationally, as well as grow their wealth, with their preferred currency. And this includes crypto.”
Black Banx has been offering crypto currency as a deposit method to its global customers since 2016. Two years later, it launched a fully fledged crypto currency trading with BTC and ETH as crypto currency.
Black Banx’s cryptocurrency proposition is among the most unique in the industry. The company offers clients autonomy by connecting its fully fledged banking platform with the features of a crypto exchange, letting account holders to use their crypto balance to pay third parties directly and immediately.
With record growth on the horizon, Black Banx can be expected to further cement its place in global fintech. As the last few months of 2023 near, digital banking customers can look forward to being able to access the global economy with increasing ease, be it as travelers making up for lost time, digital nomads taking advantage of remote work opportunities, or businesses looking expand by working with international partners, suppliers, and customers.