Alt-Banking Is Here: Another Disruption To Traditional Banking
FinTech has been waging a war on the banking industry for close to two decades. At present, more than 50% of the mortgages originate outside the traditional banking sector. This is a trend we see spreading into other areas.
Cryptocurrency is a technology that is expected to cause greater disruption within this sector.
It is not so much the attributes of cryptocurrency as much as the applications that are created to integrate it into the application. This is something that the banking sector is slow to adopt.
The Tap is one that believes it will ushering in Alt-Banking. The idea behind this application is to integrate with cryptocurrency exchanges while providing modern banking facilities.
On the app, you can access multiple major exchanges when buying or selling fiat and cryptocurrencies. With only one KYC, you have instant access to the top exchanges, and better yet, Tap will find you the best prices when buying and selling while ensuring immediate liquidity. Tap allows you to instantly convert cryptocurrencies, even if they do not have the same trading pairs on other exchanges, allowing you to buy and sell any major cryptocurrency seamlessly at the best possible rate.
There is a native token, XTP, that reduces transaction fees when staking along with providing some premium services. This is in line with the benefits of cryptocurrencies where users can receive multiple advantages simply by using the platform.
The app also offers a wallet feature, which stores your cryptocurrencies in cold storage, safe from any potential prying hands. With the touch of a button, you have immediate access to all your funds in one secure place. Within the app, you can buy and sell cryptocurrencies for fiat pairings, send funds directly to another person’s bank account or crypto wallet and pay for monthly recurring expenses directly from the app.
On top of the app, Tap offers a free Tap Prepaid card(currently only available to residents of the EU/EEA), allowing users to spend fiat and cryptocurrencies around the world. Accepted anywhere around the world (in over 200 countries). With a touch on the app, you can spend both your fiat and cryptocurrency globally. The card is due to launch at the end of January 2020.
https://thecoinshark.net/en/alt-banking-has-arrived-tap-into-the-future/
Applications such as this help to decentralize banking services. As cryptocurrency grows, it will be projects like this that start to take over a portion of the banking business. IN addition to the unbanked, there are millions of users who are not happy with the traditional banking system. The challenge, thus far, has been a lack of alternatives. Over the next few years, we could see this rapidly changing.
Which brings up the state of the traditional banks. What does their future look like? They are raking in big money, especially with their trading. However, it is easy to see how different facets of their business is under attack. One of the big benefits to cryptocurrency is that is allows for people to opt out of the traditional system.
The drawback to crypto at this point is the fact that it is complicated and applications are scarce. This is all changing as evidenced by The Tap. DeFi saw major progress in 2019. The expectation is that it will continue at an increasing pace.
What is key to notice is the change in mindset. Wall Street is working on custodial services to secure keys while this application ties into cold storage. A lot of time, major disruption comes from the fact that new entrants have a different mindset while the older companies simply try to replicate what is in place. In this instance, we basically see the banks trying to incorporate the new technology in what they already have in operation.
We will see how this all turns out and who wins this battle.
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