It’s a well-known fact that technology and innovation solve a lot of woes. For years, banking has been a somewhat archaic endeavor, as individual banks struggled with customer’s increasing demand for contactless service, online account access, and freedom from paper statements and lobby visits. With the increased attention given to cryptocurrency in the last decade, banking has again needed to shift and adapt to meet customers’ changing needs.
A Charlotte and Atlanta-based startup called Unbanked is hoping to meet the demand for non-traditional banking options. Entrepreneur and co-founder Ian Kane spent years immersing himself in the cryptocurrency world, learning everything he could and amassing a personal collection of cryptocurrency.
Kane applies that knowledge he gained to the concept behind Unbanked, which gives people the ability to access their currency without borders, use crypto-linked debit cards in-person and virtually, collect rewards, and buy, sell, and send cryptocurrency.
Traditional banks have been slow to embrace cryptocurrency, with the underlying belief being that transactions are difficult to track. Ian Kane knows well, however, that the benefits of cryptocurrency outweigh the risks. The most significant benefit may be ease of access to your funds. Unlike traditional bank accounts, which may not cross borders without an international bank account, cryptocurrency works without borders.
“There are billions of people who are unable to participate in the global economy simply because they do not have the access,” says Kane, “That right there is the biggest problem.”
Through Unbanked, Kane and his partner/co-founder Daniel Gouldman seek to educate people on the benefits of cryptocurrency and make use of these assets accessible and easy.
“We believe financial access and control is a fundamental human right,” says Kane. Unbanked is building a bridge connecting crypto and digital currencies to traditional banking.
Unbanked started simply enough, with a debit card that allowed consumers to add digital assets from sources like Bitcoin and use those assets like they would any other funds from a bank account. Backed by Visa, the debit card may be utilized like any other bank-issued debit card would be used.
Noticing people were not treating their cryptocurrency like other cash assets, Kane thought offering to normalize spending cryptocurrency on things like gas, food, and entertainment could disrupt the banking industry.
“”We thought it would be really cool to just have a Visa card where you can go and spend it,” he says.
Once Unbanked established its mission and steps to get there, they had to get the banks on board. Seeing that most banks were unsure how to handle cryptocurrency, the company partnered with different correspondent banks to offer FDIC free checking accounts. This allowed people to try cryptocurrency on for size, even if they had been hesitant in the past.
Unbanked prides itself on taking the mystery out of cryptocurrency and offering traditional banking concepts to people looking to spend what they have collected in crypto assets. It hands control of funds back to the consumer.
The key to making this new way of banking work is blockchain technology. This allows cryptocurrencies to operate without the need of a central authority, opening the door to more freedom and faster processing in banking. It takes traditional banking fees and transaction lag time out of the equation. In addition, it is more secure.
To be successful, banking as a whole will have to adapt to changing demands, technological advances, and a flexible, global economy. To remain competitive, banks will have to consider the concepts embraced by Unbanked.
“We’re very focused on continuing to build our footprint and build a global platform that empowers tens of millions of people all across the world to have more control over the way they send, receive, or spend money,” says Kane.
This foresight into what the future holds for banking makes Unbanked such a novel idea and one that is bound to find success.
