How fintech giant Black Banx helps those in financial difficulty

The cost of living crisis refers to a fall in “real” incomes that the UK has experienced since 2021. Rising inflation, a lack of government stability and the cost of imports following Brexit has seen the UK experience an unprecedented rise in the cost of living 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 of the recent rise in inflation. The UK population is finding groceries more expensive than last year, with a packet of butter costing £8 and a 20% increase in the ingredients required to make the much-loved dish, spaghetti bolognese.

With more people struggling financially now than ever, over a third of people have reported that they would switch bank account providers if it meant they could access tailored financial support. Tasha Chouhan, UK Head of Banking at Tink said: “There is a clear opportunity to offer more support to struggling Britons as we deal with the biggest fall in incomes seen for decades. With the success of open banking, banks today are in the best positioned to embrace data-driven technology to develop tailored support, tools and communications that will enable people to manage their finances in difficult economic times, while improving customer engagement and strengthening long-term loyalty.”

Tough times equal a win for banking, especially digital banking. For example, during the Covid-19 pandemic, when high street branches closed to limit physical contact and the spread of the virus, people turned to digital banks. A bank founded by German billionaire Michael Gastauer, it has been a firm favorite since its launch in 2015 and for its features that help those in financial difficulty. When Gastauer launched Black Banx, he wanted to create a financial system that looked after society’s untouchables: 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 crypto exchange features are unique as they offer customers full autonomy over their crypto assets. Their digital banking system is generally free to sign up for and doesn’t require a certain amount of funds, either a driver’s license or passport is needed to verify your identity, but that’s about it. The simple registration made it a top choice for those who want to change banks during the pandemic. The same can be said for now.

For those struggling financially, 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 number of popular currencies.

How Black Banx Can Help the Cost of Living Crisis? By improving financial literacy. Financial literacy in the UK is underdeveloped and often reserved for privately educated and wealthier individuals. Financial competence is the competence to perform financial behavior and services that support beneficial practices such as savings, loans and repayment. Financially illiterate populations find themselves looking for payday loans, poor savings and budgeting techniques, and high-interest credit due to a lack of education about money and financial planning.

By offering a wide range of services, Black Banx increases the financial knowledge of its users. Customers can access their accounts via the company’s mobile app and online. Another benefit of using Black Banx is the edgeless approach. Gastauer and his platform understand the necessity of access to financial services. Because of this, they are committed to facilitating the free and immediate flow of money around the world at a fair price.

Due to the digital banking platform’s extensive features and ease of access, UK-based customers can easily sign up if they need a new bank account with minimal requirements while improving their financial literacy.

Black Banx further protects clients’ 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 in one bank in one country. Instead, the highest level of protection is provided by keeping segregated accounts in leading banks in different countries. As a result, funds are globally diversified, and protected by multiple jurisdictions.