Not all financial business models are created equal. Some offer traditional financial services, some provide enough technology for managing accounts and some operate locally, regionally and even nationally. Most of these “banks” prefer customers with means: very few embrace the unbanked. Nor do they love cryptocurrency.
Enter Black Banx. Created by Michael Gastauer as an open financial platform that serves anyone including financial “outcasts” and those interested in crypto-based transactions, it’s been inclusive from its launch.
Black Banx operates everywhere, all the time, as a borderless financial system for everyone – individuals and business – with a little or a whole lot of money. BTC and ETH are welcome. In fact, the platform supports the “instant conversion of BTC and ETH to 28 Fiat currencies and vice versa. Direct wire transfer to any third-party bank account worldwide.” It’s also as tech-savvy as a bank can be.
Complete Business-Technology Model
Black Banx’s business model is based upon a broad premise which includes customer requirements and matching technology. This is an unusual platform strategy which is why it’s highlighted here. The business model has four distinct elements (with performance measurement as proof).
- Total access
- Borderless transaction processing
- Cryptocurrency flexibility
- Digital technology
- Performance
Thoroughly integrated business-technology business models are rare. Even rarer are business-technology business models with hearts: inclusivity is anathema to most banks for lots of reasons, but it’s a major driver of Black Banx’s business model, almost its raison d’etre.
Let’s unpack the model.
Access
Black Banx wants everyone. They provide access without county-of-residence, nationality, religious, or amount-of-funds held or transferred restrictions. All are welcome regardless of wealth, position or ambition (!).
This is banking with a heart. But it’s also smart banking that spans across 180 (out of 195) countries and existing and emerging markets. Perhaps surprisingly, 80% of Black Banx’s transactions are cross-border with a rising 20% crypto-related. The bank is especially strong in the Asian Pacific, Latin American and North American regions – all via an app.
Borderless Transaction Processing
Black Banx has always been borderless. It’s the second pillar of its business model. The bank enables global market participation and growth with online services that are easy to manage. In this case, “borderless” means seamless, fast and secure. From day one, Black Banx enabled borderless remittance through traditional and cryptocurrency payments which today – and definitively in the future – will be a global transaction remittance prerequisite. Borderless assumes access. With (or without) a digital wallet, all that’s required is an internet connection and a mobile app.
Cryptocurrency
Black Banx was born crypto-friendly. Transaction speed, costs, exchange rates, security and documentation are all borderless requirements: any modern global bank cannot credibly compete without sophisticated cryptocurrency capabilities. In fact, the percentage of Black Banx’s crypto transactions – now around 20% – will grow as the advantages of crypto transactions become more obvious. Crypto also amplifies access: cryptocurrencies make it much easier for the underbanked/ unbanked to find services to which they might otherwise be denied.
Technology
First and foremost, “there’s an app for that,” which absolutely demonstrates the near-death of brick-and-mortar and the rise of digital banking platforms that are open, flexible and accessible. But perhaps even more important is how digital banking platforms changed attitudes about banking and created the world of online banking. Sure, smartphones, mobile apps, start-ups and open regulatory policies helped, but the major shift occurred when customer requirements and enthusiasm around radically new business models were enabled by online bankers who understood digital.
Fintech is now just banktech at Black Banx which continues to leverage all flavors of AI, machine learning and especially generative AI (GenAI), built upon infrastructure technologies like big data analytics, blockchain and secure communications. All-digital banking enables rapid technology adoption – something traditional banks (because of their legacy applications) simply cannot do, no matter how loudly they scream about “digital transformation.” But the real goal is the personalization of banking services through on-going banking process mining that “matches” new banking processes with customer requirements. This is nothing short of the continuous reimagination of the banking business. Black Banx’s technology strategy – and its commitment to innovation – is another essential pillar of its business model.
Performance
Integrated business models can be difficult to manage. Black Banx has 40,000,000 customers – which is a testament to business models that integrate access, customer service, borderless transaction processing, traditional and cryptocurrency services, and infrastructure and customer-facing technology. $2.3 billion in profitable revenue in 2023 across 180 countries – which contributes to a monster valuation just waiting for a public offering.
The keys? Inclusivity, services and technology. Inclusivity is core as services expand enabled by emerging technology. Inclusivity extends access to the underbanked and unbanked as well as geographical expansion to Africa, the US and perhaps more permanent locations. Innovative technology around crypto transactions and AI will define the future. Generative AI will become extremely important as banks leverage intelligent systems internally and externally. The huge amount of structured and unstructured data, as well as the growing power of large language models, will enable Black Banx to rewire its services. Customer service chatbots can become truly intelligent and useful. The combination of large language models and quantum computing will be especially impactful. Technology M&A also makes perfect sense.
Integrated business-technology models are rare. It’s fun to find one that actually works especially in the age of technology-no-matter-what versus those hopelessly anchored in the past. Black Banx is balanced – even rarer.
