Throughout almost three-quarters of 2023, it has become evident that the digital banking sector has seen better times. Just two years ago, notable fintechs such as Stripe and Klarna set record high valuations (US$95 billion and US$45.6 billion, respectively), setting an example of how potentially lucrative the financial technology can be.
Unfortunately, as quickly as the all-time investment numbers were set, the downturn occurred just as fast. Stripe and Klarna have lost as much as 50% and 85% of those record values. In addition, the lack of diversification in investments and a classic bank run led to the collapse of Silicon Valley Bank. In contrast, the string of losses for Zurich-based global investment bank Credit Suisse had forced it into a merger and acquisition with UBS.
Despite the present challenges, however, the projections for digital banking remain. As reported by IMARC Group, the 2022 global fintech market size attained a figure of US$ 158.9 Billion and is expected to reach US$ 449.1 Billion by 2028, exhibiting a growth rate (CAGR) of 17.7% during 2023-2028.
This is largely due to the continued demand for digital banking services and the innovations that emerge as companies, such as borderless banking company Black Banx, maintain efforts to meet the growth and evolution of said demand.
Digital banking’s best regions
Like any other industry, digital banking needs vary slightly across locations and economies. As such, some regions are seemingly better suited for fintech than others due to more substantial internet penetration, well-established regulatory practices, and populations that are simply more digitally savvy.
Asia Pacific
The Asia Pacific region is leading the way in digital banking adoption, with several countries, such as China, India, and South Korea, having some of the highest levels of mobile banking penetration in the world. This is due to several factors, including the region’s growing middle class, the increasing availability of smartphones and other mobile devices, and the strong government support for digital banking initiatives.
Founded by German billionaire Michael Gastauer in 2014, Black Banx has offered private and business accounts in 28 FIAT currencies and 2 cryptocurrencies across 180 markets since 2015. So far, a key region in which it continues to generate the most revenue and operates extensively has been the APAC.
North America
North America is another region where digital banking is increasing. The United States is the world’s largest market for mobile banking, and Canada is also a major player in the digital banking space.
The growth of digital banking in North America is driven by several factors, including the increasing popularity of online and mobile payments, the growing number of millennials who are comfortable banking digitally, and the increasing competition among banks to offer digital banking services.
North America is the third largest market for Black Banx, and the US was the first country the company physically expanded to with offices and an official subsidiary (Black Banx (MEA) Holdings Ltd.) in 2016.
Europe
Europe is also seeing a growing adoption of digital banking. The United Kingdom is one of the leading markets for digital banking in Europe, and countries such as Germany, France, and Spain are also seeing strong growth.
The growth of digital banking in Europe is driven by several factors, including the increasing digitization of the economy, the growing popularity of mobile payments, and the increasing competition among banks to offer digital banking services.
Based in London, Black Banx continues to pursue continued expansion in Europe. With the difficulties experienced by the likes of Klarna, Stripe, and Credit Suisse, Black Banx has positioned itself as a reliable go-to digital bank in the region, and this has been evidenced by the company earning the patronage of six million new customers in just the first six months of 2023.
Latin America
Latin America is another region where digital banking is proliferating. Brazil is the leading market for digital banking in Latin America, and countries such as Mexico, Argentina, and Colombia are also seeing strong growth.
The growth of digital banking in Latin America is driven by several factors, including the increasing penetration of smartphones and other mobile devices, the growing middle class, and the increasing competition among banks to offer digital banking services.
Latin America (combined with the Caribbean) is the second largest market for Black Banx, with the LACAR region accounting for almost a third of the borderless digital banking institution’s customer base.
Middle East and Africa
The Middle East and Africa are regions where digital banking is still in its early stages of development, but there is a lot of growth potential. Countries such as the United Arab Emirates, Saudi Arabia, and Qatar are leading the way in digital banking adoption, and other countries in the region are also starting to see growth.
The growth of digital banking in the Middle East and Africa is driven by several factors, including the increasing availability of smartphones and other mobile devices, the growing young population, and the increasing government support for digital banking initiatives.
With a 33% higher onboarding rate than that recorded at the close of 2022, Black Banx continues to demonstrate its ability to maintain an already rapid expansion into new territories, which, according to Regional Chief Executive Officer MEA Jabari Walker, will highly involve the Middle East and Africa region.
“With the recent launch of our West African branch in Liberia, we are seeing increased business growth in that region.”
These are just a few of the hottest regions in the world for digital banking. As the world becomes increasingly digital, and the likes of Black Banx maintain their commitment to unlocking a borderless financial system for everyone where money can flow freely, digital banking can continue growing extensively across the globe.
About Black Banx
Black Banx Group employs 4,300 people with offices on four continents, serving 28 million customers with digital banking solutions in 180 countries.
