Over the years, with the birth of challenger banks and encryption institutions, the financial industry has undergone an important transformation to test traditional banking system software (TradFi). According to information obtained by Finnbold, the number of bank registrations used by banks on six European-only mobile phones running Android and iOS reached the highest level of 26.3 million in 2022, up 54.09% from a year earlier and 17.06 million times.

Downloads of banking applications on mobile phones in Europe in 2022

Source of information: Finnbold

Similarly, the total market value of encrypted money around the world has risen sharply over the past year, exceeding $250 million at the beginning of 2022. With the data bank account and password selection to obtain more temptation, the construction of the financial industry in the future market competition is increasing. In that case, who can stand out?

Challenger Bank

Challenger Bank represents financial institutions that "test" the traditional banking industry on the basis of thorough online operations.

Companies such as Revolut, Monzo and Wise provide customers with a seamless entry process and a more efficient banking experience. Unlike traditional banks, which have to do a lot of paperwork and back-checking, such banks usually need only many simple processes to open accounts, usually in a matter of minutes.

In addition, Challenger Bank also provides services such as cost budget system, real-time transaction alarm and even incentive programs to provide users with a more relaxed and enjoyable financial accounting experience.

Login password mechanism

Although Challenger Bank has made a major breakthrough in refreshing the traditional management system, with the efficient and independent innovation of login password institutions, more and more people begin to realize that the next wave of refresh in the financial industry mainly comes from encrypted currency worldwide. Institutions such as Coinbase and Binance offer many of the same benefits as Challenger Bank, but the use of blockchain applications also adds some benefits.

Login password institutions can provide customers with higher safety factor, faster stock trading time and a range of financial wealth management products comparable to TradFi Bank, including push, acceptance, expenses, deposits, remittance, trading and credit. In addition, in addition to this traditional service, blockchain applications also allow these institutions to provide a wider range of services, such as decentralized governance models that prioritize local community management decisions with clarity and accountability systems. In addition, they can also provide shares and Defi liquidity supply, so that users can effectively "become their own banks".

Because the transaction details are on the public ledger, it is more resistant to fraud and control. In a word, this innovative financial products and services quietly change the financial industry, and provide a feasible alternative for the traditional banking industry.

The coincident part.

Although Challenger bank accounts and password institutions have different characteristics, they have similar financial wealth management products.

For example, Revolut, a leading challenger bank, has well integrated cryptocurrency transactions into its products, allowing users to trade and own cryptocurrencies such as Bitcoin and Ethernet Fong. This major move allows Revolut to take advantage of the growing cryptocurrency supply while still providing a browsable and user-friendly channel for customers.

Similarly, while login password agencies use blockchain applications to drive buying and selling, some institutions, such as Coinbase, operate on a central platform managed by an intermediate government. Even so, Coinbase recently launched Base, a channel dedicated to simplifying DefiAPP development on its blockchain.

The move shows that Coinbase uses the technology of upgrading and updating and extends to Defi, which may attract customers interested in innovative financial services.

Looking forward to the future, such combinations provide an exciting opportunity for better financial innovation:Encrypt banking business process.

Encrypt banking business process

The user-friendly page of Challenger Bank can be closely combined with the trading infrastructure construction of modern functions and blockchain technology, and the operation of encrypted financial information services may change the form of customer financial management.

Encrypted bank is very helpful not only to consumers who have opened bank accounts but have encountered problems with traditional banking software, but also to those consumers who may not be able to apply traditional system software as a whole.There is no bank account person..

In developed countries, traditional banks deduct huge costs and provide limited financial information services, and encrypted banks can provide more affordable and professional choices for these populations. Fundamentally, this is likely to be particularly effective for individuals who do not meet the strict management of traditional banks, such as high comprehensive scores or many collateral.

In addition, compared with traditional banks, encrypted banks can offer faster and healthier transactions, providing obvious advantages for those who rely on relatives who work abroad to remit money.

According to Davos, the world may remit 794 billion US dollars in 2022, of which developed countries will receive about 551 billion US dollars.

The country that sends the most money in the world

Photo provenance: visual effects bourgeoisie

This kind of remittance is particularly important for people in low-and middle-income countries and is usually the main driver of some of our economy. In this regard, encrypted banks can offer faster and healthier transactions than traditional banks, providing a clear advantage for key family members who rely on working abroad to remit money.

The last thought

In fact, the potential test cases of financial services running in the encrypted track are large and diverse, and its existence represents an important step forward in financial reform.

Because of this implicit benefit, it is clear that the answer to which is better-Challenger Bank or login password institution-is not binary. In turn, it is a matter of recognizing their respective strengths and limitations and exploring the potential for development to bring them together.

The future development of the financial industry is located in the middle zone between the challenger's bank account and the password organization. In this middle zone, we can make use of the advantages of both to create a new and better product-login password bank. This new definition is a good example of how technology promotes financial reform and creates new opportunities for people around the world.