Banking is undergoing a rapid transformation as it embraces the digital future.
Banking is undergoing a rapid transformation as it embraces the digital future. With challenge comes opportunity. Here’s how Migom Bank is rising to that challenge and opening up financial services to customers previously neglected by traditional banks.
As the year 2021 draws to a close, any look back on the last 12 months will once again have COVID-19 as the dominant theme. However, thanks to the successes in the rapid discovery of vaccines, the narrative has moved onto how the global economy is recovering from the pandemic rather than the damage being inflicted by the virus itself. Service providers of digital payments like Migom Bank will continue to play a key role in the shifting trends in the digital global economy.
The extremely dovish stance of central banks across the world, who have kept interest rates at record low levels and injected huge amounts of stimulus to protect against economic fallout, created a bullish environment for stock markets. Not only have indices bounced back from the sharp drops in 2020 as the spread of COVID-19 triggered economic lockdown, but they have also gone on to achieve new record highs. With the outlook still clouded, investors will look for growth opportunities, of which digital banks have the opportunity to play an integral part in ensuring the trend of digital inclusion that the Covid pandemic has accelerated continues.
While the impact of the pandemic has been far from even, with some people enduring economic hardship, for others a year of being locked down resulted in savings being accrued that they have been keen to spend as measures of ease. This pent-up demand has had a knock-on effect on supply chains that at times have struggled to cope with the change in gear, resulting in bottlenecks and driving up prices.
As such, while coronavirus remains an ever-present backdrop, investor focus is shifting to rising inflation and how soon central banks will start tapering and how sharply they will hike interest rates.
Banks’ Role in the Recovery
While the strategy of traditional central banks still has a huge bearing on the global economy, the banking sector has seen a number of challengers emerge, promoting digital assets and payments as society becomes increasingly cashless.
Migos has been a key player in this changing face of banking has developed into a global neo-bank, servicing the next generation of investment customers looking for opportunities in emerging markets.
No lookback on 2021 would be complete without mentioning cryptocurrencies, particularly Bitcoin, which have recorded dramatic price gains and losses and prompted broader conversations on the role they may play in the financial ecosystem.
Cryptocurrencies are starting to shift from the margins to become part of the mainstream, such as Paypal adopting Bitcoin and Litecoin while El Salvador became the first country to accept a cryptocurrency as legal tender earlier this year. In response, central banks are considering creating their own versions, widely referred to as Central Bank Digital Currencies, including talk of a Britcoin in the UK.
2021 also saw the launch of Migom’s digital gold coin, combining the oldest of currencies with the newest in cryptocurrencies. This 1-ounce gold coin is available both as a tangible asset or into a crypto wallet (as a whole or infractions), as a fully-secured stable digital gold coin redeemable 1 for 1 into a real golden one. The coin can be purchased using any major fiat or cryptocurrency, effectively fully physicalizing crypto assets and democratizing gold.
Despite the spectacular growth in both availability and the value of various cryptocurrencies, the sector remains poorly understood by a large number of potential investors and Migom is a trailblazer in making these markets accessible to all.
Migom’s e-wallet can be linked to customers’ existing credit and debit cards, bank accounts and be connected to various money transfer systems turning it into a personal finance hub. Bitcoin and other blockchain-based coins can be added to the e-wallet, providing a bridge between crypto asset holdings and fiat currencies in a single click. This comprehensive offering, known as Whole in One℠, provides a frictionless experience for investors to access the full gamut of currencies and digital assets.
Migom’s focus is on emerging economies where the number of mobile phones held per capita typically exceeds the number of bank accounts, bringing Swiss-grade standards of compliance and safe custody as well as deposit and transactional services for multiple types of digital assets.
Digital Banks Filling Service Gap
This confluence of digitally-led services allied to the same levels of compliance and risk management expected of a physical institution has crafted Migom a unique position as a digital banking pioneer offering the full range of services of a traditional bank. The neo-bank’s success is predicated upon a customer-first approach, a global network of safe custody solutions, and regulated service provision.
Where Migom has led the charge with a cloud-centric model and a light physical footprint, filling the service gap left open by traditional banking, now the financial behemoths are following and moving toward a more cloud-based future and embracing cryptocurrencies.
“Migom Bank is quite simply a modern bank created to service the needs of customers in geographies that, despite being technologically able to benefit from digitalization, have been unable to do so due to the cultural challenge barrier of compliance that is entrenched in the operating model of traditional banks,” said Thomas Schaetti, president of Migom.
The emerging economies that Migom has dialled in on will be central to both future global economic growth as the recovery continues as well as solving the headline issue of the last quarter of 2021, the climate crisis.
Tackling the Climate Crisis
The 26th Conference of Parties held in Glasgow in November saw a number of promising commitments to achieve net-zero emission goals, slash methane leaks and put an end to deforestation but failed to achieve a global consensus on how to fairly distribute the financial burden the transition requires. This leveling up of the global society, where the most-developed countries who have contributed the most to historic emissions are leant on to enable emerging economies to continue their development but without leaving the same vast carbon footprint they benefited from, will be a dominant theme of the coming decade. Here again digital services, such as cellular networks and low earth satellite internet networks, will have a role by reducing the fixed infrastructure footprint in emerging economies.
Financial institutions will of course be crucial in funding the shift away from fossil fuels and investment in new technologies. Already the traditional banking sector is under pressure from shareholders and activists for their continued funding of coal and oil projects.
Into this chasm step neo-banks such as Migom, free of any legacy issues to offer the increasingly environmentally and socially-conscious investor a digital offering befitting the needs of the modern, ever developing world.