While there are continued efforts to combat inflation across the globe that are showing signs of success in some countries, the risks emerging from supply chain disruptions, rewiring of trade relationships, and ongoing geopolitical tensions is being expected by many to complicate economic growth.
In fact, the circumstances of the present and the foreseeable future has the International Monetary Fund (IMF) projecting that the world economy will grow at no more than 3% in 2024. In addition, advanced economies like the United States, Japan, the United Kingdom, and Canada are also expected to experience modest growth (1.4%) next year.
Fortunately, emerging economies are expected to see higher growth on the back of strong consumer demand, younger demographics, and improving trade balances. India, in particular, is being anticipated to have one of the strongest growth rates next year at 6.3%.
It is in the latter markets where Black Banx anticipates to maintain its growth trajectory, “banking” on the revenue it generates from the likes of markets like India to support its expansion in not as rapid growing, but still major markets like the US.
India is home to as many as 2,100 fintech firms as per a recent report by Department for Promotion of Industry and Internal Trade (DPIIT). A recent report by Ernst and Young also suggests that the domestic fintech sector will earn US$1 trillion in AUM and US$200 billion in revenue by 2030.
Despite being global fintech capital in the making, India, like many developing countries, continues to have a substantial unbanked or underbanked population. According to a report by Merchant Machine, 20% of India’s population is unbanked. While a substantially smaller portion compared to the likes of Morocco (71%), Vietnam (69%), Egypt (67%), and the Philippines (66%), it must be noted that India was the second most populous country in the world next to China when the report was completed. Since April 2023, it ranks as the first.
It is the understanding of the demographics of these countries, and their status as emerging economies, where Black Banx sees the greatest opportunity to further grow its operations. Through its commitment to financial inclusion, the group aims to provide the unbanked in markets like India, Vietnam, and the like with essential financial tools and effectively fill the gap that traditional banks do not and eventually gain them more economic prospects.
Growing the company by way of reaching the unbanked and easing international banking continues to prove effective for Black Banx. It has steadily built a substantial presence in countries across Asia, Latin America and North America, as well as in the Middle East and Europe. After only three quarters in 2023, the company has garnered over 11 million customers, bringing its total of people it serves to over 33 million.
The rapidity in which new technologies emerge, combined with how customers take to the increasingly digital world, is largely influencing how banks operate and serve customer needs.
Since the start of the Covid-19 pandemic, and well after the global health emergency was declared over, digital wallets and account-to-account payments have become the go-to payment method in both emerging and established markets.
Now, while the IMF reportedly expects global inflation to drop to 5.2% in 2024, from a high of 8.7% in 2022, the high prices of basic commodities still remain, and customers will want to get more bang from their bucks. By way of digital banking, they not only enjoy the convenience of transacting from almost anywhere, but also benefit from the lower fees and more competitive interest rates.
As a global digital bank committed to providing customers with the aforementioned less-expensive banking alternative, Black Banx continues to look into all markets where it can provide considerable value.
The fintech market in the US, for instance, had been dealt with numerous set-backs, be it the collapse of Silicon Valley Bank or overseas relocations of local crypto exchanges like Coinbase. As a result, many individual and business customers have reduced options in terms of digital banking, wealth management, and other related services, a gap which Black Banx aims to fill with its borderless banking offerings.
According to reports, Black Banx founder and CEO Michael Gastauer has plans to purchase a federally licensed FDIC member bank in California that would make way for a nationwide rollout of Black Banx products and services in the country, an indication that the company is considering addressing local market needs first and worrying about tepid economic growth only as it comes.
Indeed, the slowdown in the global economy poses many challenges for the digital banking space and the financial industry in general. While not much is expected for the foreseeable future thanks to many financial institutions mostly fine-tuning their monetary policies to survive the challenges in the market, the likes of Black Banx are fortunately not as risk averse, opting to keep with their commitment to redefine global digital banking and take part elevating the economy by making banking easier for the people participating in it.