- Digital-only banks provide easier access, user-friendliness, low fees
- A fully digital banking model can present challenges due to digital illiteracy
Bankless Times talked to Stevan Radonjanin, the CEO of Veli and former Bitpanda business developer, who played a pivotal role in its scaling to Unicorn status.
What are some factors behind fintech’s biggest successes so far?
The advent of blockchain technology has played a pivotal role in making financial transactions faster and more secure. Blockchain technology brought many innovations and improvements, which traditional finance needs.
Furthermore, substantial support from venture capital investments in fintech startups has equipped these innovative firms with the necessary resources to develop and expand their groundbreaking solutions.
What are some ways fintechs can benefit banks?
Banks can take advantage of fintech opportunities in various ways. They can begin offering fintech products, such as cryptocurrencies, to meet the demands of their customers and investors.
Can fintechs be damaging to bank activity in some way?
While banks will continue to exist, they do have to evolve to stay up to date with new technologies. Many banks are already cutting down on physical branches due to the associated costs. Neobanks, which operate entirely online, have demonstrated that physical branches are not a necessity.
Should commercial banks increase their investment and research in fintechs?
Absolutely. They possess the financial resources, an established client base, and valuable industry connections, while fintechs bring innovation, power and speed to the table. When these two forces connect, the potential for new developments is truly amazing.
Is it possible or feasible to transition from traditional banking to purely digital banking?
Certainly, we've seen successful examples in practice with neobanks like Revolut, N26, Monzo, and others. These digital-only banks not only provide easier access and user-friendliness but also feature significantly lower transaction fees compared to traditional banking and numerous other innovative features.
However, transitioning to a fully digital banking model can present challenges due to reliance on human interaction and insufficient digital literacy of some users. Many people are still not educated enough to fully transit to the digital era of banking.
How is consumer trust best earned in the relatively new fintech industry?
Consumer trust is earned through factors like having reputable investors and founders, obtaining licenses, practicing transparency, actively listening to user feedback, and developing products that meet user needs.
How would it be best to go about crypto regulation?
Unfortunately, crypto regulation is currently heading in a direction that favors banks and protects them, rather than fostering innovation and providing users with greater accessibility to the new technology. Regulators face a challenging task of striking a balance between being too strict (which can kill innovation), and protecting users.
The regulatory frameworks that have been used so far in traditional finance cannot be fully applied to crypto technology. New and appropriate regulations for this emerging technology need to be created. In an ideal world, the regulation would be the same worldwide, so that once a crypto business is regulated, it can operate globally.
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