The world’s banking industry is constantly evolving, with new trends and disruptive opportunities emerging every year. In 2020, the global pandemic triggered a major change in consumer behavior in almost every industry. For banking, like many others, this was a shift to online or digital operations, as in-person service was essentially no longer viable. Although the banking sector has considerable influence in the digital sector, e-solutions such as CashApp and Wirex are increasingly prominent, as well as crypto-native exchanges, protocols and apps.
Cryptocurrency is the hot topic on everyone’s lips, which is no surprise considering bitcoin’s market cap hit a high of $1 trillion last year – more than any other bank in the world. It was announced by Mastercard and PayPal that they would start welcoming Bitcoin, Ethereum and Litecoin to its network. According to Ronit Ghoti of Citi, in his latest future of money report, “Money is entering a format war” – and it looks like these two payment giants are hedging on digital/crypto wins.
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 the increase in remittances in developing economies, the prevalence of initial coin The increasing number of purchase machines offered, fluctuating monetary regulations, and increased awareness.
Similarly, the increasing acceptance of cryptocurrencies in various industries backed with venture capital investments will further fuel the various opportunities for growth. The emerging high-value sub-sector here is ‘DeFi’ (decentralized finance). DeFi refers to financial applications in cryptocurrencies or blockchains that aim to circumvent financial intermediaries. Without central authority, users interact with financial instruments using smart contracts – thus removing the need to rely on financial or corporate middlemen. The DeFi protocol and platform allow users to deposit crypto and earn high-interest returns on savings, as well as borrowing and lending them.
In the last 12 months, the total value locked (tv lines) has grown by 8300% over the DeFi protocol from $980m to $87bn. Institutional capital is poured into this untapped area that was previously inhabited by only a minority of the crypto world.
scallop vs traditional bank
snail Neobank is the ‘world’s first De-Fi powered Neobank’ whose mission is to accelerate the world’s transition to a more decentralized and equitable financial system. The traditional banking sector is facing its biggest challenge in the form of technology and social behavior has moved away from centralized forces. As such, a banking platform that provides both digital and decentralization to its users could reveal the future of how we bank. Scalp has global plans to take on the global banking industry, with its recently announced roadmap detailing product launches in the European Union and the UK in September and expanding into Asia in Q1 2022.
Scallop is FCA registered and provides a platform where users can quickly and securely manage crypto and fiat assets in one place. It provides a seamless on/off ramp to convert fiat currency to crypto and vice versa. The platform has various tools such as Scallop Pay and Scallop Card that seamlessly integrate crypto and DeFi assets with real-world applications. For example, for the first time ever, users can use a Scallop card to buy any goods or services directly with their crypto assets, without first selling it to fiat and then sending 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 tap their cards on the front end.
Scallop will offer both a personal and business banking account that can be opened in minutes with AI-powered KYC. These accounts work in the same way as traditional banking accounts but with additional DeFi powered possibilities. With ‘Scalp Earn’ users can use DeFi protocols such as Compound, Away and DYDX directly from the app and earn high yields (6-15%) on their assets, with multiple APYs to choose from.
Further DeFi and banking products will include: Scallop Exchange, Scallop Hardware Wallet, Scallop Chain, Scallop NFT and Scallop Token (SCLP).
The banking industry is yet to see the full disruptive potential of crypto. However, Scallop is joining the likes of PayPal and others who are making significant strides in challenging the traditional framework as we know them. As recently expressed in Forbes – ‘the bigger banks had better pay attention’. Silicon Valley has not only arrived, but it has also brought in its friends, the global decentralized digital finance gang.