With the number of cryptocurrency users growing constantly, the need for dedicated digital asset banking naturally increases too. Currently, companies specializing in this niche are actually offering better terms to their customers than traditional financial institutions are able to provide within the fiat system.
Cryptocurrencies are an alternative to fiat money in many respects and they are likely to attract more attention as clouds continue to gather over the world economy a decade after the global financial crisis and the birth of Bitcoin.
CryptoTresor has established a crypto banking and payment provider in Singapore, offering customers digital bank account.
With the spread of decentralized digital assets and the problems fiat currencies are facing right now, often due to failed central bank policies, demand for traditional-style banking services in the crypto space will continue to grow.
By prioritising 24/7 access, FinTechs offer services available via non-traditional channels such as social media, empowering customers to a great extent. By 2020, social media will be the primary medium to connect, engage, inform and understand customers (from the mass ‘social mind’ to the minutiae of each and every individual), as well as the place where customers research and compare banks’ offerings.
Over the next five years, channel diversification will be a key driver in the banking sector:
- Over 90% of banks expect growth in the usage of mobile applications, much higher than any other financial sector.
- A fast-paced user increase is also expected in usage ofwebsite and/or web-based platforms (82%).
- Traditional providers are increasingly taking a ‘mobile-first’ approach to reach out to consumers, e.g. designing their products and services with the aim of enhancing customer engagement via mobile.
- More than half (52%) of the respondents in our survey offer a mobile application to their clients, and 18% are currently developing one.
By observing and often experiencing first-hand what banks offer – or do not offer – new entrants are targeting segments that need to most urgently focus on the customer. By developing narrowly defined, but highly effective solutions they have managed to step into and take over segments neglected by traditional banks in terms of offerings. In particular, FinTechs are offering:
- Solutions for customers unable to get loans with no or poor credit scores
- Peer-to-peer (P2P) marketplaces for customers unable to secure loans from traditional sources
- Personal finance management tools