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Fintech Startups Will Eat a Massive $280 Billion Banking Revenues by 2025

Coinspeaker Fintech Startups Will Eat a Massive $280 Billion Banking Revenues by 2025Fintech startups across the globe are making massive inroads in the global payments industry. As per the Accenture report titled Banking Pulse Survey: Two Ways To Win, non-banking financial startups will eat 15% share in global payments revenue by 2025. As per the estimates and the growth projections, this share translates to a massive $280 billion.As per the report, the global payments revenue is expected to grow at an annual rate of 5.5%. In 2019 itself, the global payments market is estimated worth $1.5 trillion and will cross over $2 trillion by 2025. The report states that only banks which adapt to the changing business models will survic=ve in the long run.The Accenture report takes into consideration the revenue-risk model which analysis several factors like technology shift, consumer behavior and regulations, affecting the markets in the long run. The report takes the views of 240 banking payment executives from over 22 countries while asking them how they plan to strategize their businesses in the changing environment.Gareth Wilson, Accenture’s global payments lead said:“Rather than being at the forefront of the new wave of the booming payments market, banks are feeling the heat from new competition and seeing their margins squeezed. We face an inevitable world of instant, invisible and free payments, which spells trouble for banks that don’t want to be relegated to the plumbing of payments. But it also presents an opportunity to tap into a new business model based on this digital boom.”Challenges to the Traditional Banking SystemFintech startups from Silicon Valley are already competing in offering instant and real-time payment services to consumers with mobile-based virtual wallet systems. The Accenture report states that banks revenues from card-based transactions will be under severe pressure and risks in the next six years.For banks, the credit cards or online transactions business is likely to face further downward pressure putting stress on their balance sheets. The report states that between 2015-2018 the business from credit card transactions has dropped by a staggering 33%.Last year in 2018, the Bank of America released a report wherein they acknowledged the risks faced by the changing payments industry landscape. The bank refers to the transition in the payments industry like the adoption of new technologies, the growth of digital currencies, internet services, and much more.Alan McIntyre, who leads Accenture’s Banking practice globally, said:“The digital boom will mean banks have to fundamentally change the way they think about their revenue composition. Channels that once made the banks billions of dollars will cease to exist.To succeed in the future, banks will need to develop new digital business models at scale, with ‘one-click’ payments the new norm, and set their sights on delivering secure, convenient and frictionless customer experiences.”Fintech Startups Will Eat a Massive $280 Billion Banking Revenues by 2025
Coinspeaker

Fintech Northmill Gets Banking License: Should Revolut, N26, and Others Be Worried?

Coinspeaker Fintech Northmill Gets Banking License: Should Revolut, N26, and Others Be Worried?Northmill is a Sweden-based fintech company, which, up until now, has been offering cloud-based financial services under the slogan “building the bank of tomorrow.” Since 2017 the company has been working closely with the SFSA to become a fully regulated bank. While some might think that such a rival newcomer can’t do a thing to industry giants like Revolut and N26, Northmill currently offers a consumer-focused product that could lure in potential clients from its competitors.The company currently offers a service where users who have a partial payment, credit or credit card bill between 1,000 and 300,000 kroner, can choose to switch to Northmill which offers to pay off the debt to the existing creditor and to offer lowered repayment option. Currently, the company’s insurance business is reported to have over 15,000 monthly users.While the company has this service up and running, they are in plans to also offer saving accounts, cards, and payment transfers.“Northmill has grown organically and laid a solid foundation with our current credit and insurance offerings to our 200,000 users. The most recent product, Rebilla Reduce, aims to lower people’s current interest rate on existing credits. By being able to operate as a bank, we have the tools to take the next step and drive true positive change for the users,” commented Margareta Lindahl, Chairwoman of the Board at Northmill.Some of the conditions which Northmill needed to apply to were a must-have of 5 million Euros to launch its banking services with an additional comment that Northmill, at all times, should have a capital base of no less than the initial capital which is 5 million Euros.Northmill now faces a crowded room of competitors. Companies like Revolut, N26, and Monzo have been offering cloud-based banking services to their customers for quite a while. Revolut, which is a UK-based fintech company, has been offering some of the best currency exchange rates in the business which is one of the main reasons why people tend to switch to Revolut.Additionally, the company offers users to create virtual cards, which help users to shop more safely in the online environment. Plus all that – Revolut offers their clients to exchange Fiat to Crypto. However, the cryptocurrencies cannot be used, sent, received or even held, as it is just a custodial wallet, where the user doesn’t hold any keys to their crypto holdings. This feature mainly can be used to speculate on the price of Bitcoin.N26, on the other hand, has been operating since 2013, and at the beginning of this year, they reported the approximate estimate valuation of 2.38 billion Euros. N26 claims to make customer financial life easier by offering an all-in-one platform for banking with zero hidden fees.“The banking license means a great responsibility and it is gratifying to see that Sweden and its authorities foster innovation. By being technology-driven and product-oriented we are excited to be able to build a new modern customer-centric bank,” says Margareta. Fintech Northmill Gets Banking License: Should Revolut, N26, and Others Be Worried?
Coinspeaker

XRP built for practical use case to solve inefficiencies in legacy banking systems, says Ripple exec

“We do not see crypto as replacing fiat.” Breanne Madigan, Head of Global Institutional Market at Ripple said at The OECD Global Blockchain Policy Forum 2019. In the finance session, Madigan stated that Ripple was inclined toward interoperability and that “replacing fiat” was not their goal. The Ripple exec said, “We see opportunities for the […] The post XRP built for practical use case to solve inefficiencies in legacy banking systems, says Ripple exec appeared first on AMBCrypto.
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Token Swap: Tether Announces Token Burn Of Over 400 Million USDT

Tether has shared a piece of information about a forthcoming token burn which according to announcement would take place shortly. According to a tweet from their official Twitter handle, Tether plans to shortly move 400 million Tether USDt as part of its Omni authorized but not issue pool to the issuance address in order to burn/revoke them. Tether will shortly move 400m Tether USDt as part of its Omni authorized but not issue pool to the issuance address in order to burn/revoke them. — Tether (@Tether_to) September 16, 2019 Tether Minted 300 million USDT Few Days Ago Few days ago, Tether took to Twitter to inform its users that it was coordinating with a third party to perform a chain swap. This was planned in order to convert some tokens from their original Omni to an Erc 20 protocol. At the time of the initial announcement, 300 million Tether USDt was announced to have been minted for the swap. However, these conversions took place few days ago as Tether promised the token swap wouldn’t disrupt the total supply. In few hours Tether will coordinate with a 3rd party to perform a chain swap (conversion from Omni to ERC20 protocol) for 300M USDt. Tether total supply will not change during this process. — Tether (@Tether_to) September 12, 2019 Whale Alert, a twitter account dedicated to alerting the community of big cryptocurrency transactions, noted the coinage described above in a tweet published on Sept. 12. As per a second tweet submitted as an answer to the first one, Whale Alert offered an explanation of the type of transaction: “This USDT mint is part of a swap. The corresponding burn on Omni has not taken place yet.” And finally, Tether is burning the Omni Tether that was already converted to ERC20. Until now, no token burn has taken place on Omni blockchain. In July, it was reported that Tether accidentally minted and burned 5 million USDT tokens. However, Tether long-standing controversy about issues relating to transparency and market manipulation. The post Token Swap: Tether Announces Token Burn Of Over 400 Million USDT appeared first on Coingape.
CoinGape

Zero-Knowledge Proof Solution from QEDIT Implemented Into Kaleido Blockchain For Transaction Privacy

Kaleido, a startup blockchain solution from ConsenSys Venture Studio has gone on record to become the first blockchain platform to implement the zero-knowledge proof solution from QEDIT—the crypto private company. A Non-compulsory Feature On September 13th, 2019 QEDIT shared a paress released with Cointelegraph where it stated that the partnership it had developed with Kaleido […]
Bitcoin Exchange Guide

Cryptocurrency Exchange OKEx Korea Removes Privacy Altcoins

According to an official announcement made by the South Korean branch of OKEx, the popular exchange will delist five privacy coins as early as October 10, 2019. Complications for Privacy Coins Trading of Monero (XMR), Dash (DASH), ZCash (ZEC), Horizen (ZEN) and Super Bitcoin (SBTC) on OKEx Korea will be suspended on October 10, 2019,Read MoreRead More. The post by Edoardo Vecchio appeared first on BTCManager, Bitcoin, Blockchain & Cryptocurrency News\
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