The cost of living crisis refers to a drop in ‘real’ incomes that the UK has experienced since 2021. Rising inflation, a lack of government stability and post-brexit import costs have led the UK to experience an unprecedented rise in living costs and lower living standards. A rapid increase in energy costs, caused by a rise in the wholesale price of gas has been a key driver in the recent increase of inflation. Britain’s population are finding their groceries more expensive than last year, a pack of butter going for £8 and a 20% increase in the ingredients required to make the much-loved dish, spaghetti bolognese.
With more people struggling now financially than ever, over a third of people have reported that they would switch banking account providers if it meant that they could access tailored financial support. Tasha Chouhan, UK banking lead at Tink said, “There is a clear opportunity to offer more support to struggling Brits as we deal with the biggest drop in income witnessed for decades. With the success of open banking, banks are today in the best position to embrace data driven technology to develop tailored support, tools and communications. This will enable people to manage their finances during difficult economic times, while improving customer engagement and shoring up long term loyalty.”
Tough times do equal a win for banking, especially digital banking. For example, during the Covid-19 pandemic, as high street branches closed to limit physical contact and the spread of the virus, people turned to digital banks. One bank founded by German billionaire Michael Gastauer, has been a firm favourite since its launch in 2015 and because of its features that aid those in financial difficulty. When Gastauer launched Black Banx, he wanted to create a financial system that catered to society’s untouched: typically focusing on the unbanked and underbanked in developing countries.
Black Banx currently serves over 20 million customers in 180 countries. They offer services in 28 FIAT (government issued currency) and two cryptocurrencies. Black Banx’s features of the crypto exchange are unique as they offer clients full autonomy over their crypto assets. Their digital banking system in general is free to sign up to and doesn’t require a certain amount of funds, either a drivers licence or passport is needed to verify their identity but that is all. Its simplicity of sign-up made it a top choice for those looking to change banks in the pandemic. The same can be said for now.
For those in financial difficulty, Black Banx allows all customers to manage and monitor accounts and cards in real time, an easier way to track budgeting. Customers also have access to a Black Banx debit card that can be used worldwide, hold funds and send and receive payments in 28 currencies, transfer money to other Black Banx accounts in seconds, and configure card spending limits. As a bonus, the bank also offers interest bearing savings accounts in a range of popular currencies.
The way Black Banx can aid the cost of living crisis? By improving financial literacy. Financial literacy in the UK is underdeveloped and often saved for the private educated and wealthier individuals. Financial literacy is the competence to carry out financial behaviours and services that support beneficial practices such as saving, borrowing and repaying. Populations with financial illiteracy find themselves seeking out payday loans, poor saving and budgeting techniques and credit with high interest rates due to a lack of education surrounding money and financial planning.
By providing a wide range of services, Black Banx increases the financial knowledge of users. Customers can access their accounts via the company mobile app and online. Another advantage of using Black Banx is its borderless approach. Stated as banking redefined, Gastauer and his platform understand the necessity of access to financial services. Because of this they are committed to facilitating the free and instant flow of money around the world at a fair price.
Due to the digital banking platform’s extensive features and easy access, customers based in the UK are able to sign up easily if they require a new bank account with minimal requirements and improve their financial literacy at the same time.
Black Banx further protects customers’ money through industry leading tools and its global diversification concept. By developing strong relationships with leading banks in the world, client money is never held at one bank in one country. Instead, the highest level of protection is provided by keeping segregated accounts in leading banks in various countries. As a result, funds are globally diversified, and protected by multiple jurisdictions.
The post How fintech giant Black Banx aids those in financial difficulty first appeared on BusinessMole.
