Neobanks or “challenger banks” have disrupted the banking industry since their inception almost a decade ago. While technology evolved the way people around the world communicate and consume, traditional banks’ operations remained the same. As such, challenger banks were able to fill an increasingly apparent gap in the outdated banking industry. 

With the mainstream awareness of cryptocurrency and institutional capital invested into it, a new, increasingly apparent market gap is appearing. Globally, there are 106 million cryptocurrency holders – roughly a third of the population of the United States – and the number is likely to rise by 6.3%, according to leading research firm Data Bridge. Indeed, large banks and payment giants agree. Goldman Sachs recently announced the creation of its first crypto trading desk, and JPMorgan Chase is offering digital assets to their clients – with both behemoths also expanding their cryptocurrency teams, signaling their intent in the space. 

In the payments space, PayPal announced the addition of Bitcoin, Ethereum, and Litecoin to their networks, as well as the $200m acquisition of Curv, a crypto security company. As these giants adapt and enter the digital era of payments, this also leaves an opportunity for forward-thinking challenger banks to integrate cryptocurrencies and banking. With advanced tools and the latest technological advancements, these banks harness the power of modern technology to provide better service and customer experience. 

Scallop – The Frontrunner of Crypto Challenger Banks

The Scallop is an FCA-registered platform that allows users to quickly and securely manage digital and fiat assets in one place. The conversion of fiat into crypto (and vice versa) is seamless thanks to Scallop’s on/off ramp. The platform has numerous tools which Scallop hopes will aid its mission to accelerate the global transition to a more equitable and decentralized financial system. Scallop will offer individuals and institutions Personal and Business Banking Accounts that can be opened in just minutes with AI-powered KYC. Notably, Scallop Pay integrates crypto and DeFi assets with real-world applications. In a first-ever for neo-banks or crypto payment solutions, users will be able to use the Scallop Card to purchase any goods or services directly with their cryptocurrencies. 

Looking forward to the launch of Scallop Learn.
An educational platform by @ScallopDefiBank tailored for crypto users of all knowledge levels.#ScallopLearn would take users on a diverse learning process spanning DeFi, NFTs, Metaverse, Crypto Banking and Scallop as well. pic.twitter.com/yvAGeHRzx4

— Ubongj  (@ubong_ephraim) March 4, 2022

With ‘Scallop Earn,’ users can access DeFi protocols such as Compound, Aave, and dYdX directly from the app and earn high yields of (6-15%) on their assets, with multiple APYs to choose from.

Further DeFi and Banking Products will include: Scallop Exchange, Scallop Hardware Wallet, Scallop Chain, Scallop NFT, and Scallop Token (SCLP)

Recently announced on the Scallop Medium blog, their roadmap detailed plans for the global expansion of the business and product into Asia in Q1 2022, following the launch in the EU and UK in September this year. Scallop Token (SCLP) has yet to be announced by the company but will likely arrive before the product launch.