There are some problems that currently happens to the financial service industry. These problems cannot be simply solved with conventional infrastructure as it is no longer relevant to the development of microeconomy. Nowadays there are many new companies established with brilliant ideas and great plan which aims to serve unreachable segments, underbanked clients, and other parties who cannot enjoy banking services. These companies use an existing template, technology, and infrastructure to achieve the purposes. BABB, on the other hand, uses a different approach. They completely change the hierarchal and exclusive economy system to the one which is inclusive and decentralized.
The Objectives of BABB
Using modern infrastructure, BABB is trying to create prospective banking future. Their goal is actually relatively simple. Anyone in the world must be able to open an account in UK banks. They should be able to connect to the network to utilize their money optimally. This ambition is not possible to achieve as BABB has analyzed some current problems in the banking system and tried to provide solutions to those problems.
Problems with Existing Banking System
As mentioned earlier, the existing banking system which is a kind of outdated infrastructure fails to serve retail customers or microeconomy in general. The problem is getting bigger due because there are many banks that recklessly deal with financial crisis. This leads to dissatisfaction toward the traditional banking. In order to provide an effective solution in facing the problems, BABB has identified some main problems.
The first problem is related to banking system risk. As individuals and a part of society, day by day we are getting more dependent toward banks for dealing with daily transactions. The transactions may include saving money, getting the loan for particular purposes, opening a new account, paying shopping items using the credit card, and many more. This situation allows banks to have over control that threatens both customers’ money and personal data. Eventually, this can lead to systemic banking risks.
The next problem is related to customers’ data. Sometimes the data are not used properly. For instance, these data are sold to the third party to get some profit. The traditional banking system is influenced by the regulations of GDPR which be a trend in EU. Thus, it needs to be redesigned that will cover how they collect, use, and save customers’ data.
The other problem about traditional banking system is the fact that it does not provide an incentive to the bank, or underbanked global situation because of the costs spent in onboarding them as clients considering small balance in their account. The old system becomes the barrier to financial inclusion. Integrating with third parties and adding mediators is not a solution. There are still other problems related to unhealthy competition and centred system that cause inefficient distribution and risks to customers’ data. So how does BABB deal with this problem?
Solutions Offered by BABB
BABB finds the relation between the downsides of today’s banking system with economic reality, and try to find evaluate them. The research added with their knowledge and experience in current regulation on financial industry and new technology has enabled them to plan a more effective strategy. BABB creative team has prepared a blueprint for the global decentralized bank that offers a sophisticated solution to face the challenge.
BABB makes use of blockchain with decentralized banking service for costumes all over the world. Regardless their location, background, and income, BABB offers UK account to anyone in the world which aims to help increase financial inclusion and social integration, as well as encourage people to gain profit from themselves. BABB connects people and business via a new global financial system using advanced technology and social and economic regulation. By connecting social connectivity with easily accessible social banking, BABB is able to build a network to encourage international cooperation.
The point is BABB is fully supported by blockchain in developing a decentralized bank to operate and integrate digital currency all over the world. They offer bank account in BABB platform based on UK regulation. The account is intended for all potential customers or businesses easily even for those outside UK. If you are interested to open an account here, all you need is a valid ID. BABB relies on technology and innovation to provide bank account which is cheaper, easier to use, and more importantly easier to access.