Following years of economic downturns, startup companies, especially in the technology sector, have been searching for a new place to call their home. Silicon Valley Bank met its demise last year after substantial social media-fuelled bank runs left them without vital funds. Its report of intention to raise capital was enough to cause the breakdown of one of America’s 20 largest commercial banks. In the UK (where HSBC rescued the collapse of SVB), just over a third of startups had access to no banking facility access other than Silicon Valley Bank. As the failure took hold, many startup business owners rushed to digital banking providers to quickly set up an account and deposit their funds. One digital bank, Black Banx, is a key player for startups due to its globalised and fearless approach to the fintech industry.
Black Banx is a financial services provider offering banking solutions in 180 countries. The Group is acclaimed for their approach to accessibility and account management. With 28 currencies and over 40 million customers worldwide, Black Banx accepts private individuals and businesses. Last year, they made a staggering $2.3bn in revenue, reaching the unbanked, regular and wealthy individuals. This genuinely global bank has created quite the scene within the fintech sector after launching less than a decade ago. A spokesperson for Black Banx said, “We want to provide a financial service platform that helps to grow markets by connecting people and businesses around the world with optimal ease via smartphone and online. We believe, for these reasons, that startups, especially tech-based, will benefit from banking with Black Banx.”
Startups initially faced rejection in the traditional banking system due to a need for historical records and financial data. Silicon Valley Bank offered a haven for startups looking to grow deposits, access guidance and network with like-minded individuals. When interest rates were low, for example, during the Covid-19 pandemic, these deposits snowballed as tech stocks and startup valuations rose. SVB quickly became the go-to for startups looking to take advantage of loans and guidance. Etsy and Coinbase are two companies that grew with the help of Silicon Valley Bank. Since the collapse, many startups are facing a need for more choices when it comes to finding a bank that matches the services of SVB. Could Black Banx be a strong competitor?
Startup companies value convenience and simplicity, especially when they’re still getting their business off the ground. Black Banx allows businesses to pay suppliers and employees quickly; whether a fully-fledged company, startup or sole trader, the Group offers payment options that work best for you. Customers can utilise carefully selected, best-in-class global banking networks through business and personal accounts to process banking without any transaction limits. This enables clients to send and accept local and international payments almost instantly and hold or manage funds in multi-FIAT and cryptocurrencies. Using Black Banx, startups can set up an account within minutes and receive debit cards for the owner and employees as requested (virtual and physical cards are available) to help manage expenses, track spending and improve cash flow.
In its business client operations, Black Banx continues to grow its payment pipeline and maintain leadership in supporting cross-border trade.
Challenger banks are at the forefront of the financial industry. However, many still question the security surrounding neo-banks. Black Banx is based on global diversification and data protection. Funds are always safe by developing solid relationships with leading financial institutions worldwide. Customers’ money is never held within one bank in one country; Black Banx keeps it segregated in accounts with leading banks in various countries. As a result, your money is globally diversified and protected by multiple jurisdictions. In addition, the bank is entirely PCI DSS 3.2 certified, complying with the highest data security standards. Their payment software is reported to be fully encrypted and secured using ISO 20022-certified messaging systems for payment executions and data transfers. To sum it up, funds and data remain safe at Black Banx.
Its customer-first approach, smartphone app, business account, high security and popularity make Black Banx a solid choice for startups looking for a new financial institution. While the company does lack features, including loans and personal support, the solely funded business by German billionaire Michael Gastauer is already changing the tides of fintech. An investment on both sides, startups and this relatively young bank, can seek partnership from each other as they revolutionise the fintech world.
