The global banking industry is constantly evolving, with new trends and disruptive opportunities emerging every year. In 2020, the global pandemic caused a big change in consumer behavior in almost every industry. For banking, as for many others, this marked a shift towards digital or online operations, as the in-person service was inevitably no longer viable. Although the banking sector retains a great influence in the digital space, electronic solutions such as CashApp and Wirex are becoming more prominent, as well as crypto-native exchanges, protocols and applications.
Cryptocurrency is the hot topic on everyone’s lips, which is no surprise given Bitcoin’s market capitalization of $ 1 trillion last year, higher than that of any bank in the world. This was helped by MasterCard and PayPal announcing that they would start welcoming Bitcoin, Ethereum, and Litecoin on their networks. According to Ronit Ghoti of Citi, in his last Report on the future of money, “Money is entering a format war,” and it appears these two payment giants are covering themselves with a digital / crypto victory.
Crypto banking industry
Experts believe that the crypto banking market will grow at a rate of 6.30% in the next five years. This growth will be largely influenced by increased remittances in developing economies, the prevalence of buying machines for initial coin offerings, the increasing number of fluctuations in currency regulations, and increased awareness.
Similarly, the growing acceptance of cryptocurrencies in different industries backed with venture capital investments will help drive even more diverse growth opportunities. The emerging high-value subsector here is ‘DeFi’ (decentralized finance). DeFi refers to financial applications in cryptocurrencies or blockchain that aim to disrupt financial intermediaries. Without a central authority, users interact with financial instruments using smart contracts, eliminating the need to trust financial or corporate intermediaries. DeFi protocols and platforms allow users to deposit cryptocurrencies and earn high interest returns on savings, as well as borrow and lend them.
During the last 12 months, the total blocked value (TVL) in DeFi protocols has risen 8300% from $ 980 million to $ 87 billion. Institutional capital has been poured into this untapped sector previously inhabited only by a minority of the crypto world.
Vieira vs Traditional Banks
Scallop is the ‘world’s first neobank with De-Fi technology’ whose mission is to accelerate the world’s transition to a more decentralized and equitable financial system. The traditional banking sector faces its biggest challenge to date in the form of technology and social behavior shifts away from centralized powers. As such, a banking platform that offers both digital and decentralization to its users could reveal the future of how we bank. Scallop has global plans to take on the global banking industry, with its recently announced roadmap detailing the product launch in the EU and UK in September and expansion to Asia in the first quarter of 2022.
Scallop is registered by the FCA and provides a platform where users can quickly and securely manage crypto and fiat assets in one place. Provides a perfect entry / exit ramp for converting fiat to crypto and vice versa. The platform has several tools, such as Scallop Pay and Scallop Cards, that seamlessly integrate DeFi and crypto assets with real-world applications. For example, for the first time, users can use a Scallop card to buy any good or service directly with their crypto assets without having to first sell to fiat and then send it back to their bank for use. Scallops innovative technology will handle all parts of the conversion process on the backend, allowing users to simply touch their card on the front end.
Scallop will offer a personal and business bank account that can be opened in just minutes with KYC powered by artificial intelligence technology. These accounts work in the same way as traditional bank accounts, but with additional capabilities powered by DeFi. With ‘Scallop Earn’, users can access DeFi protocols like Compound, Aave and dYdX directly from the app and get high returns of (6-15%) on their assets, with multiple APYs to choose from.
Other banking and DeFi products will include: Scallop Exchange, Scallop Hardware Wallet, Scallop Chain, Scallop NFT and Scallop Token (SCLP)
The banking industry has yet to see the full disruptive potential of cryptocurrencies. However, Scallop is joining companies like Paypal and others that are making significant strides in challenging traditional frameworks as we know them. As Forbes recently put it: “Big banks better pay attention. Silicon Valley has not only arrived, but has also brought its friends, the global decentralized digital finance gang. “