Whether individuals support cryptocurrency or are suspicious, these virtual tokens are gaining traction in various industries, even banking.
Adopting cryptocurrency as a method of financial transfer enables low processing charges and fuels an exponential development trend in the crypto business. Crypto-friendly banking solutions can answer many questions that conventional banking users and service providers ask daily.
Let us take a look at various aspects of crypto friendly banking solutions and how these can reap benefits for the customers and the solution providers.
Crypto Banking is the method by which virtual currencies are regularly brought into the market and traded for various services.
Crypto banks are financial institutions that handle virtual money transactions such as investments, withdrawals, financing, taking on debt, or even participating in venture capital funding within various marketplaces.
In layman’s words, Crypto Banks are systems that enable cryptocurrency owners to deposit, swap, and use virtual currencies for everyday transactions.
The inclusion of a wallet, which stores the virtual currencies for various crypto banking procedures such as depositing, withdrawing, exchanging, and much more, is a crucial aspect of crypto banking.
DeFi, or decentralized finance, is a popular term that enables users to perform all sorts of monetary trades in a systematic environment with greater clarity and openness.
Several businesses and banks are attempting to function in the blockchain-based environment and finding DeFi an assurance of safety and control of their customers’ information and holdings.
A neo bank is a form of virtual institution that does not have any physical address. Neobanks, contrary to conventional banks, do not even have an actual location and instead function and service electronically.
Neobanks may not have bank licenses and rely on banking collaborators to deliver financial institution products.
When a neo bank deploys cryptographic solutions to cater to its customers and facilitate various banking operations, it is called a crypto friendly neo banking solution. This type of solution is mostly available on connected devices such as smartphones, laptops and tablets. The advent of 5G technology opened new gates to a more convenient way of banking which has been supported by high-end blockchain technology for the sector’s growth.
Here are the Crypto banking approaches best suited to cryptography-based transformation:
Customer enrolment entails cross-departmental investigations for know your customer (KYC) and anti-money laundering (AML). The method must be completely secure to protect customers’ personal information. However, a data breach is an issue that threatens the existing authentication management technique.
Blockchain has the potential to improve client induction by enabling processes that are highly effective, safe, and far less susceptible to theft. To speed this up, banking corporations and early-stage ventures offering crypto-friendly banking solutions are embracing cryptographic identity management methods. This saves costs significantly for banking solution providers and the end customers.
The existing method of cross-border remittances needs a centralized mediator to make SWIFT transactions. This increases transactional operating expenses, necessitates using intermediaries, and causes considerable delays in payment.
Blockchain facilitates and accelerates remittance processes while lowering management fees. On the other hand, banks must engage with an approach that requires building a network structure for cross-border remittances or entering an already operational network. A system of this type can cut transfer times from several days to a few hours or even minutes.
Blockchain reduces implementation costs and enables rapid transactions among banking firms. It provides advantages such as reduced payout delay and increased reliability and control. Those who supply blockchain-based mobile banking solutions are capitalizing on the power of cryptography and cryptocurrency to enable quicker settlement processes for their consumers.
A smart contract, called an automated agreement, has the same restrictions and limitations as a standard contract. When an event occurs, smart contracts autonomously follow the built-in regulations.
Smart contracts allow financial services companies that provide crypto-friendly banking services to streamline and execute tasks such as lending, borrowing and foreclosures, investing, and much more.
Smart contracts based on blockchain technology have the potential to revolutionize the way debts, lines of credit, and foreclosures are handled. They generate a distributed contract version that includes a fully transparent history. This streamlines the task of issuing payments while providing speedier ownership resolution and transferring and improved transparency.
The banking industry is being disrupted by blockchain tremendously. Banking firms, major businesses, and upcoming ventures recognize the value of blockchain and cryptocurrencies and provide crypto-friendly banking solutions to engage their clients efficiently. These applications give clients advantages such as lower prices, shorter payout times, proper and safe operations, and increased utility or platform owners proving to be a silver lining for all.
Crypto friendly banking solutions are here to stay and can change the banking. At Antier Solutions, we provide a white label crypto-friendly banking solution to help you quickly tap into the market. In addition, we specialize in the development of customized banking solutions.
Schedule a free demo of our white label crypto friendly banking solution or connect with our subject matter experts to share your business needs.