The fintech industry has disrupted the status quo and paved the way for a major transformation in the world of finance and banking. Truth be told, traditional banks have already started to adapt to the trends and come up with digital solutions for modern-day, tech-savvy clients. Based on its trajectory, fintech is bound to make a bigger impact on the global banking sector, with experts projecting its market valuation to jump to around $405.58 billion in 2027 from $206.76 billion this 2024. The people who will make this possible are the pioneers, trailblazers, and visionaries in this field, and one of them is none other than German billionaire and venture capitalist Michael Gastauer.
Who is Michael Gastauer?
If his name rings a bell, it’s because Gastauer, who is among the top ten wealthiest people in Germany, has been a staple in news headlines concerning the business world for years. Born Michael Tankred Raimund Gastauer, the German entrepreneur has been gaining traction, particularly in the fintech space, for his innovative digital bank called Black Banx. The neobank is a product of the philanthropist, venture capitalist, and fintech investor’s years of experience in the banking industry and is driven by Gastauer’s desire to make a difference.
Michael is the founder, president and chairman of the Gastauer Family Office, which initially funded Black Banx. But before he established the single-client private asset management firm, Gastauer dabbled in different companies, including the startup incubator Gorilla Park, a Zurich-based asset management firm, and a payment solution service. All of which helped him gain insights into the finance industry and prepared him for his most ambitious career endeavor—launching Black Banx, formerly called WB21.
What Drove Gastauer to Make Black Banx?
According to the German billionaire, the primal force behind his most ambitious business venture was his personal experience with traditional banks. As someone who has witnessed for years the flaws of cross-border banking and the other inadequacies of standard banks, Gastauer couldn’t just turn a blind eye and accept what was once regarded as the industry standard in the finance world.
He took it upon himself to come up with a financial solution that would not only elevate the overall banking experience but also revolutionize the way people manage their finances. In 2014, he hired a team of software experts to help him realize his vision of an online platform that could offer more than what traditional banks are capable of providing. With Black Banx, Gastauer has realized his goal of bringing a true borderless bank, capable of serving customers on six continents especially those stuck in underbanked and unbanked locations.
What Does Black Banx Have to Offer?
On top of being accessible in 180 countries across the globe, Gastauer created Black Banx with the mission of simplifying banking for all. As such, the global financial platform enables customers to set up an account with just one photo ID. Clients also do not need to visit a physical bank for registration and verification since Black Banx is a fully digital bank. So regardless of paperwork, income, and location, everyone is welcome to become a member and access all of Black Banx’s features and services.
Speaking of what it has to offer, Black Banx allows both private and business clients to create accounts in 28 fiat currencies and 2 cryptocurrencies, making it easy for them to carry out international payments and inter-platform instant payments in whatever currency of their liking. Black Banx also offers multi-currency debit card options, unrestricted payments, crypto withdrawals via external wallets, and batch upload or bulk payments. The digital bank also offers interest-bearing savings accounts, crypto exchange, and crypto storage. Black Banx only charges flat fee rates, so clients don’t have to worry about skyrocketing fees when they make financial transactions.
Is Gastauer an Inventor or Innovator?
To better understand why Gastauer is regarded as an innovator and not an inventor, one should know the difference between invention and innovation. When people make new products, processes, or ideas without necessarily looking to solve a problem, they are considered inventors. But when people make products and services or improve existing ones in response to a problem, they are innovators.
Gastauer did not make the first fintech company, so he can’t be credited as the inventor or progenitor of the industry. However, what he did make a significant difference in the fintech space as Black Banx is one of the fastest-rising brands and the most promising one in terms of overall performance in recent years. All this is thanks to Michael’s dedication to championing financial inclusion and bridging the gap between unbanked individuals and traditional banking systems. His constant efforts to innovate his platform by studying emerging technologies also play a big part in Black Banx’s success.
How Well is Black Banx Performing as a Global Brand?
Based on official figures released by Gastauer’s brainchild in January, Black Banx generated its biggest revenue last year from the Asia-Pacific region at 33%. This was followed by Latin America and the Caribbean at 28%, North America at 21%, the Middle East and Africa at 12% and the EEA region, comprising Europe, Iceland, and Norway, at 6%. These key regions make it possible for Black Banx to realize global domination.
In its Q4 financial report, the Canada-headquartered digital financial firm reported a total of $2.3 billion in annual revenue, up 109% year-on-year. For the final 2023 quarter alone, the company generated $798 million. Meanwhile, its annual pre-tax profit was at $289 million, a 62% year-on-year increase. The company also saw its client base significantly grow, with its financial report indicating that it onboarded 6.1 million clients in the last three months of 2023 alone. Overall, it already has at least 39 million customers, a 95% increase over 2022.
