Thursday, June 13, 2024

Neobank Black Banx Poised to Smash Records Again with Another Stellar Year of Growth

While 2023 is far from over, arguably the most appropriate way to describe the year when it comes to the financial technology industry is significantly underwhelming. After prior years where digital banking has grown extensively in terms of customer utilization and notable neobanks like Stripe and Klarna hit record valuations (US$95 billion and US$45.6 billion, respectively), more or less the opposite has occurred in 2023.

Although utilization of digital banking continues to increase, the growth rate is so far not as rapid as during the global Covid-19 health emergency. The aforementioned Stripe and Klarna, as well as a majority of the fintech industry, are now enduring drops in valuation, with the two big names losing as much as 50% and 85% of their record value.

It’s not all dark skies for fintech in 2023, however, as several companies have either expanded their customer bases or turned a profit in for the first half or so of 2023. In some instances, like that of London-based Black Banx, it has been both.

Six million more new accounts, and counting

Established in 2014 by German billionaire Michael Gastauer, Black Banx has enjoyed a steady increase in clientele launched to the public a year later in 2015. In its first year of operations, it had over 200,000 customers open accounts on the Black Banx platform.

Just a year later, the company surpassed the one million customer mark. Black Banx averaged as many as 2.8 million new customers annually until 2021.

By 2022, it had a record year, garnering the patronage of as many as 7 million new customers and bringing its total customer count to 22 million.

This year, Black Banx onboarded over six million new customers. Averaging 1.3 new customers every month in 2023 so far, the company is projected to surpass its record 2022, and likely go well beyond having over 30 million total customers.

With a 33% increased onboarding rate compared to the end of 2022, Black Banx continues to demonstrate its ability to continue an already rapid expansion into new territories.

“Especially with the recent launch of our West African branch in Liberia, we are seeing increased business growth in that region,” commented Regional Chief Executive Officer MEA, Jabari Walker.

In addition to millions of new private accounts, Black Banx has also seen a 25% increase in its business customers. In the first half of 2023, over half a million companies had signed up for Black Banx business accounts, bringing the company’s total business customers to over 2.5 million.

An earner in a down year for fintech

While much ado has been made about the funding winter in global fintech, Black Banx has been the exception for two key reasons.

First, since its launch, the company has been backed by the Gastauer Family Office, and as such, differentiates itself from fintechs reliant on external investors. From a customer standpoint, this ensures accounts are steady and not at risk of potential buyout or consolidation with another fintech.

Second, as a fast growing global fintech experiencing a rapid increase in its customer base, Black Banx is on pace to surpass its revenue projections for 2023. In the first six months alone, its revenue grew by 47% to US$997 million, compared to US$680 million six months prior.

According to Black Banx Group Chief Financial Officer Alexander Johnson, the company is set to have another record year, a year that will prove substantial in its next plans. “Black Banx is well prepared to reach its annual revenue forecast for 2023 of US$1.9bn and has a good chance to improve its profit margin even further.”

Looking to the future

Offering private and business accounts in 28 FIAT currencies and 2 crypto currencies across 180 countries, Black Banx’s continued success to further its expansion plans and effectively reach more customers with growing international banking needs as well the unbanked who have little to no access to traditional banking services.

According to CEO Michael Gastauer, the aim will always be to widen customers’ horizons by making the world easier to traverse, even if just in banking. “We want customers in, say, London to send and receive payments, to places as far as the USA or Canada, and vice versa, but do so in a quickness and convenience that it is as if it’s within the country they are in.”

By achieving this, Black Banx opens opportunities in terms of globalizing businesses, international employment, and simply expanding the global economy.

Claire James
Claire James
Claire is an accounts manager at Fire Digital UK, an online publishing and content marketing company based in the North West.

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