Launched in 2015 by German billionaire and CEO Michael Gastauer, Black Banx has been steadfast in its mission to unlock a borderless financial system for everyone where money can flow freely.
Aimed at easing the transfer of money to and from anywhere in the world, the company has since built an international network that spans over 180 countries and territories in both established and emerging markets.
Today, Black Banx is one of the world’s largest digital banking fintech companies serving over 20 million customers, and counting, worldwide.
The growing reach of its services in recent years has created plenty of opportunities for people to access financial services no matter their income level, and has been particularly useful in low-income economies where traditional banking systems have been limited in reaching some segments of the population.
In this article, we will explore how global digital banking like that offered by Black Banx is helping improve financial inclusion in low-income economies and what benefits this has for society as a whole.
Financial Inclusion Via Digital Banking
Financial inclusion is the process of making financial services accessible to people who are traditionally excluded from the mainstream banking system. This usually includes individuals who live in rural or remote areas, those without a steady income, and people who do not have a bank account.
According to the World Economic Forum, those who are “unbanked” are presently an estimated 1.4 billion adults worldwide. This means they do not have an account at a financial institution or through a mobile money provider.
Digital banking is changing this with companies such as Black Banx by offering affordable and accessible banking services to low-income individuals.
Benefits of Global Digital Banking
Here are some of the ways that digital banking is improving financial inclusion in low-income economies:
Lower Transaction Costs
Global digital banking eliminates the need for physical infrastructure, such as branches and ATMs, which significantly reduces transaction costs. This makes banking services more affordable for low-income individuals who may not have the means to pay high fees.
Black Banx takes this a step further, through cross-border transaction fees that are comparatively lower than those imposed by traditional banks, making it easier for anyone to transfer money to and from anyone and anywhere.
Mobility
Many people in low-income economies have access to mobile phones, even if they don’t have a bank account. Mobile banking allows these individuals to open an account, make transactions, and access other banking services using their mobile phone.
Expanding on the mobility standard digital banking offers, Black Banx globalizes the concept by offering private and business accounts in 180 countries that can transact to and from one another.
Financial Education
Digital banking platforms often provide financial education tools to their customers, which can be especially helpful for those who are new to banking. This education can help people develop better financial habits and make more informed decisions about their money.
At Black Banx, such learning tools are included in its locally-tailored products and services that are available across multiple channels designed to meet customers’ everyday banking needs, as well as in the crypto currency investments and Private Wealth Solutions created for those with more sophisticated requirements.
Easier Money Transfers
Digital banking platforms make it easier for people to transfer money to one another. This is particularly important in low-income economies, where many people rely on remittances from family members who live in other parts of the country or abroad.
This is further eased by Black Banx by way of empowering its customers to hold funds, send and receive payments in as many as 28 different currencies.
The benefits of financial inclusion are numerous. For individuals, it can mean access to credit, savings accounts, and other financial products that can help them improve their lives. For society as a whole, financial inclusion can lead to economic growth and reduced poverty levels.
Digital banking has the potential to be a powerful tool in achieving financial inclusion, particularly in low-income economies. As more people gain access to digital banking services like that offered extensively by Black Banx, significant improvements in financial inclusion can be expected to increase worldwide.
