Friday, April 19, 2024

Britons seek financial shelter at Black Banx after interest rates rise to 4.5%

Interest rates have risen for the 12th consecutive time in the UK since December 2021.

In the battle against inflation, the traditional banking system is trying to dampen its effects. And whilst they do so, digital banking platform Black Banx may be the hero customers are looking for within the unstable financial climate. With a revenue of over $1.1bn as of December 2022, Black Banx has stepped up its game, with CEO Michael Gastauer offering a non-discriminatory banking service, refusing to turn away prospective customers based on funds or where they reside in the world. Its additional mission to provide financial literacy has led Britons to seek the company out. 

Bank of England governor, Andrew Bailey, in a press conference said: “Let me be clear, inflation remains too high. We have to stay the course to make sure inflation falls all the way back to the 2% target.” Inflation has notably hit British households, especially when looking at substantial food costs and a general increase in the cost of living. 

Will interest rates affect you? There are a number of ways interest rates can affect consumers. The most impacted will be those with mortgages, credit cards, loans and savings.

According to the government’s English Housing Survey, just under a third of households have a mortgage. Monthly repayments are set to rise following the 0.25% rise in interest rates. Whilst not expected to be a dramatic jump for homeowners, it comes after years of low interest rates during the Covid-19 pandemic. According to the Financial Conduct Authority (FCA), around 356,000 borrowers could face difficulty with repayments by July next year. The increased interest rates will see those on a standard variable mortgage pay an extra £15 a month and those on tracker mortgages pay an extra £24 a month. 

Interest rates will also affect those who have taken out credit cards and loans. Unsecured personal loan customers may be able to escape the wrath of rising rates as they’re typically on a fixed rate. However, interest rates on credit cards are expected to get higher, meaning customers will be paying back more each month. 

Savers are to get a higher return on their money due to increased rates, however, banks are failing to provide accounts with rates high enough to match rising prices. 

Who are Black Banx and what can they do? Black Banx is a fintech service offering debit accounts to individuals and businesses. The bank may not be able to provide customers with credit options, but it can educate and shelter customers during a financial crisis. 

When approached for a comment, founder Michael Gastauer said, “I’ve always wanted Black Banx to be a bank that people can come to when they don’t feel like they have anywhere else to go. We accept people from all walks of life, crypto users, the wealthy, underbanked and those looking for a borderless approach. With our systems, teams and operating market, customers can count on us to keep money safe and flowing worldwide. We offer users access to budget tracking, a debit card that can be used globally and financial advice through our expert customer service team.”

Is Black Banx safe? Being a completely digital bank, Black Banx often gets prospective customers who are worried surrounding the security of their money. Although concerns are understandable, especially for those who are slowly transitioning into the digital age, Black Banx assures customers that their funds are protected using industry leading security tools and a global diversification concept. 

By developing strong relationships with leading financial institutions worldwide, Black Banx have made sure that client money is never held solely in one country. Segregated accounts are kept in top banks in various countries. As a result, customer funds are protected by multiple jurisdictions by being globally distributed. 

For those feeling the financial crunch and looking to diversify their funds, Black Banx is a top choice. Switching banks has recently become a trend in the US, and one that may be about to take off in the UK. Americans reported that they no longer wanted all of their money sitting in one place, especially after the bank run on Silicon Valley Bank and rising interest rates. JP Morgan recently told investors that deposits had fallen around 8% compared to 2022. According to a survey from JD Power, around 30% of American bank customers moved money from their primary account to another bank in March. 

With the UK likely to follow this pattern, Black Banx is welcoming new customers. Clients looking to transfer funds can sign up to Black Banx almost instantly, with only a form of photo identification needed. With 28 currencies and two cryptocurrencies available, and a range of other features, Black Banx is a top choice when searching for a new bank amid financial turmoil.

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