In this blog post, Traderoot CEO Jan Ludik discusses the increasing adoption of digital banking and the role that fintech innovation is playing in driving this growth.
In recent years, digital banking has evolved from a convenience to a necessity for consumers worldwide. According to projections, the number of digital banking users will surpass a staggering 3.6 billion by the end of 2024, representing over 46% of the global population. The digital banking market size was worth around $7.9 trillion in 2021 and is estimated to hit approximately $10.3 trillion by 2028. The paradigm shift towards digital channels reflects a growing demand for enhanced convenience, security, and accessibility in banking services.
Neobanking: Redefining the Banking Experience
One of the most remarkable transformations in the banking sector has been the rise of neobanks. Born in the digital era, these agile, customer-centric institutions are rewriting the rules of traditional banking. With their intuitive interfaces, personalised services, and innovative features, neobanks have captured the hearts of tech-savvy customers. A standout example is Brazil’s Nubank, which has amassed 65 million customers by 2022 and a market value of $45 billion. This exemplifies how neobanks are challenging conventional banking norms and capturing a significant market share.
Traderoot’s Universal Issuing Platform – Core Account (UIP-Core Account) product offers a seamless and cost-effective solution to businesses seeking to launch a neobank.
Banking-as-a-Service (BaaS): Empowering New Players
Fintech innovation has unlocked new possibilities for businesses outside the banking realm through the advent of Banking-as-a-Service (BaaS) platforms. Empowering non-banking entities to offer financial services seamlessly, BaaS providers like Traderoot have transformed the way banking is done. By leveraging BaaS, businesses can focus on their core competencies while delivering financial solutions to their customers, driving innovation and boosting their value proposition. This revolutionary approach is accelerating financial inclusion and extending banking services to traditionally underserved populations.
Traderoot’s suite of fintech products, including our Universal Issuing Platform – Core Account, Universal Issuing Platform – Electronic Value Distribution, Card Management System, Payment Service Provider – Channel, Payment Service Provider – Acquirer, Payment System Operator and Billing and Reconciliation Engine, provide all the services needed to enable BaaS solutions.
Open Banking: Catalyst for Collaboration and Growth
Open Banking has emerged as a catalyst for collaboration between traditional financial institutions and fintech start-ups. By securely sharing data and functionalities through APIs, open banking fosters a more competitive and dynamic ecosystem. According to research by Accenture, open banking initiatives have the potential to generate up to $416 billion in new revenue. Such figures underscore the vast opportunities arising from embracing collaboration and open banking principles, leading to a win-win scenario for all stakeholders.
Traderoot’s Universal Issuing Platform – Core Account and Payment Service Provider – Acquirer products have the ability to enable open banking solutions across a wide range of sectors, including the telecommunications industry, postal service operators, payment service providers, insurers, and other financial services providers.
Driving Financial Inclusion through Fintech
At Traderoot, we recognise the transformative power of fintech innovation in promoting financial inclusion. For underserved communities, fintech solutions are acting as a lifeline, empowering them with access to essential banking services and tools for financial stability. Mobile banking solutions, in particular, have become instrumental in bridging the financial gap, enabling secure transactions, credit access, savings, and investment opportunities for the unbanked and underbanked. Through these initiatives, fintech is not only transforming lives but also creating a more inclusive and prosperous society.
The digital banking revolution is reshaping the financial services landscape like never before. With neobanking, BaaS platforms, open banking, and a focus on financial inclusion, fintech innovation is unlocking opportunities for growth, collaboration, and global impact.
As pioneers in the fintech industry, our mission is to empower financial institutions with cutting-edge technology to enable superior banking experiences. We are dedicated to developing innovative solutions that cater to the ever-changing needs of customers, enabling banks and fintech start-ups alike to thrive in the digital age. Through collaborative efforts with industry stakeholders, regulators, and partners, we are committed to advancing financial inclusion and expanding access to banking services for all.
Join us on this exciting journey as we embrace the power of fintech to create a more inclusive, efficient, and customer-centric financial ecosystem. To learn more, email firstname.lastname@example.org or visit the solutions page on our website.