In just two decades, fintech—short for financial technology—has rapidly emerged, reshaping the financial services industry. This dynamic sector has thrived on a series of innovations that define a generation, with each development appearing more groundbreaking than the last.
The future of fintech appears to be promising, with significant growth expected in the coming years. According to McKinsey, the fintech industry’s revenue is projected to increase to over $400 billion by 2028, representing a 15 percent annual growth rate, three times the overall banking industry’s growth rate.
In 2024, this growth is expected to be fueled by emerging markets and the ongoing digital transformation of the banking industry. Digital currencies and cryptocurrencies are getting a lot of attention in the financial world. More than 130 countries are looking into using or adopting central bank digital currencies (CBDCs).
Despite some challenges, such as regulatory pressures and funding fluctuations, there are promising indicators for the future of fintech, including a potential funding rebound and pockets of resilience in various fintech sectors.
The ongoing digitization of financial services and money creates opportunities for beneficial innovation and competition, although it also presents various policy implications that need to be addressed.
Fintech companies are also finding opportunities, such as the growing demand for regulatory technology and the potential for growth in payment companies as the shift toward embedded finance continues.
German billionaire Michael Gastauer is transforming the banking industry with Black Banx, a digital platform set to revolutionize online finance. Launched in 2015, Black Banx is faster, more user-friendly, and more secure than previous developments. Gastauer aims to challenge big banks and reshape banking practices for the better.
Black Banx offers unique features, such as no monthly fees or hidden charges. It provides instant international payments and includes a built-in budgeting tool to track spending and ensure financial stability.
Gastauer created Black Banx to counter perceived exploitation by big banks. With around 5,100 employees on four continents, he aims to democratize financial opportunities, traditionally reserved for the wealthy and poised to redefine banking permanently.
Black Banx Group shared its third-quarter results for the first nine months of 2023, revealing that it has now exceeded 33 million retail customers and is adding over 1.8 million new users each month.
Initially aiming for 30M clients this 2023, the Group adjusted its plans in late September, setting a new forecast of 38 million clients before the year ends. The number of SME clients increased by 21% overall and 32% in the MEA region, indicating positive growth for business clients in the Middle East and Africa.
In the first nine months, Black Banx’s financial performance aligned with its ambitious 2023 growth plans. The profit before tax was USD 158 million, the highest in the nine-month period since 2015. Excluding these costs, the profit before tax would have been USD 172 million, a significant increase from USD 89 million in the previous year.
The third quarter saw a 72% year-on-year revenue growth, and the first half of 2023 experienced a 47% increase, surpassing the original target of 55% compound annual growth from 2022.
Black Banx shows no signs of slowing down
Currently, the banking platform offers 28 different currencies and two cryptocurrencies and accepts clients from 180 countries and territories.
Users can get debit cards in different materials (plastic, metal, or virtual) and exchange currencies or trade crypto in real-time. The platform also lets you withdraw money to other people or external crypto wallets. It also provides savings accounts with interest in major currencies. For businesses, there are convenient options like batch upload or API for making multiple payments at once.
Black Banx has made a big impact by growing its customer base and spreading its money around the world. It’s one of the leaders in the fintech industry because of its strong technology.
The company follows global financial trends and makes money from different regions: 35% from Asia Pacific, 32% from Latin America and the Caribbean, 16% from North America, 15% from the Middle East Africa region, and 2% from Europe, Iceland, and Norway combined.
“In the first nine months of 2023 we have demonstrated good growth momentum across a diversified business portfolio, underlying earnings power and balance sheet resilience. This puts us on a good track towards our 2023 financial targets. We are determined to continue on this path while accelerating the execution of our global customer acquisition strategy.” Michael Gastauer, Group Chief Executive Officer
“These results clearly demonstrate the benefits of Black Banx’s successful growth strategy. We have built a focus on increasing our profit margin, increasing profitability by accepting moderate growth, we have proven our resilience, and we are delivering strong organic capital generation. This enables us to invest in further business growth and deliver positive returns to our shareholders.” Alexander Johnson, Group Chief Financial Officer.
What to expect from Black Banx?
Black Banx plans to lead in changing the financial sector using technologies like blockchain, AI, and machine learning. It is also working to reduce their global office space with the “Work from Anywhere” program, aiming to decrease their economic impact and achieve a net-zero emissions goal.
Although the company is already diverse, Black Banx wants to grow its global workforce to 8,000 employees by 2025. They aim for at least 40% of them to be females, with more women in leadership roles. Through the “stay at home” and “go digital” initiative, Black Banx is reducing work-related fuel usage by 99.9% for its employees.
It is evident that Black Banx’s journey from 2015 to present posted a fintech power with a vision to change the way the world does banking. As the company continues to grow and innovate, its impact on the financial sector is bound to be felt for years to come.