The world’s banking industry is constantly evolving, with new trends and disruptive opportunities emerging every year. In 2020, the global pandemic has led to a major shift in consumer behavior in nearly every industry. For banks, like many others, this was a shift to online or digital operations, where inevitably personal service was no longer viable. Although the banking sector retains a significant amount of influence in the digital space, electronic solutions such as CashApp and Wirex are becoming increasingly prominent, as well as native cryptographic exchanges, protocols and applications.
Cryptocurrency is a hot topic on everyone’s lips, which isn’t surprising given the $1 trillion market capitalization of Bitcoin soaring last year – more than any bank in the world. This was helped by MasterCard and PayPal announcing that they would begin welcoming Bitcoin, Ethereum and Litecoin on their networks. According to Ronit Guti from Citi, in her latest future money report, ‘Money gets into a coordination war’ – these two payment giants seem to hedge a digital/crypto victory.
Experts believe that the crypto banking market will grow at a rate of 6.30% in the next five years. This growth will be greatly affected by the increase in remittances in developing economies, and the spread of primary Currency Introducing purchasing machines, the increasing number of fluctuations in monetary regulations and raising awareness.
Likewise, the growing acceptance of cryptocurrencies in various industries backed by venture capital investments will help boost various growth opportunities. An emerging high-value sub-sector here is “DeFi” (Decentralized Finance). DeFi refers to financial applications in cryptocurrencies or blockchain that are intended to disrupt financial intermediaries. With no central authority, users interact with financial instruments using smart contracts – thus eliminating the need to trust financial intermediaries or companies. DeFi protocols and platforms allow users to deposit cryptocurrencies and earn high-interest returns on savings, in addition to borrowing and lending them.
Over the last 12 months, the total value (TVL) on DeFi protocols increased by 8300% from $980 million to $87 billion. Institutional capital has flowed into this untapped sector that was once inhabited by only a minority of the cryptocurrency world.
Scallops vs. conventional banks
Crown It is the “world’s first De-Fi neobank” with a mission to accelerate the world’s transition to a more decentralized and equitable financial system. The conventional banking sector faces its biggest challenge to date in the form of technological and social behavioral shifts away from central authorities. As such, a banking platform that offers its users digital and decentralization can unveil the future of how banking is going. Scallop has global plans to engage with the global banking industry, with its recently announced roadmap detailing the product launch in the EU and UK in September and expansion into Asia in the first quarter of 2022.
Scallop is FCA registered and provides a platform where users can quickly and securely manage crypto and paper assets in one place. Provides a smooth on/off ramp for converting fiat to crypto and vice versa. The platform contains various tools such as Scallop Pay and Scallop Cards that seamlessly integrate crypto and DeFi assets with real-world applications. For example, for the first time ever, users can use the Scallop Card to purchase any goods or services directly with their crypto assets without having to first sell them to Fiat and then send them back to their bank for use. Scallops’ innovative technology will handle all parts of the transfer process on the backend, allowing users to just tap their card on the front end.
Scallop will offer both a personal and a business bank account that can be opened in just a few minutes using an AI-powered Know Your Customer (KYC) system. These accounts work in the same way as traditional bank accounts but with additional DeFi capabilities. With Scallop Earn, users can access DeFi protocols like Compound, Aave and dYdX directly from the app and earn high returns (6-15%) on their assets, with multiple APYs to choose from.
DeFi and other banking products will include: Scallop Exchange, Scallop Hardware Wallet, Scallop Chain, Scallop NFT, and Scallop Token (SCLP)
The banking industry has yet to witness the full disruptive potential of cryptocurrencies. However, Scallop joins the likes of Paypal and others making strides in challenging traditional frameworks as we know them. As it was recently expressed in Forbes – “The big banks would have been better off paying attention. Not only did Silicon Valley arrive, but it also brought in its friends, the global decentralized digital finance cartel.