Open Banking: Macropay’s Review of Innovation in the Banking Industry
This Macropay review aims to analyze the state of innovation in the banking industry. Studies reveal that the banking industry is still not fully digitalized and is lagging behind other industries. In fact, the banking sector still relies on outdated telegraphic technology for intercontinental payments. These systems are fragmented, slow, and expensive. However, such limitations can easily be eliminated by using integrated digital payment solutions offered by innovators like Macropay.
Over the last few decades, digitalization revolutionized how businesses operate. The emergence of the internet and mobile technology enabled businesses to decentralize. In turn, decentralization means businesses no longer need to be physically present. To facilitate this global reach, reliable and secure payment gateways are a vital necessity.
Unfortunately, the banking industry is failing to keep up with globalization. This is partly because the industry is conservative and slow to adopt innovation. For instance, about 30% of the world population remains unbanked. Stringent requirements to secure banking services make it difficult for some people to open bank accounts.
At the same time, the global internet penetration is on the rise. For example, Morocco has a banked population of 29% compared to a 84% internet penetration. Meaning, Moroccans have better access to the internet than to banking. This disparity has resulted in banking alternatives such as mobile wallets and digital currencies. While digital currencies are an integral part of the digital world, the lack of regulation leaves users largely vulnerable to scams and scammers with little to no legal recourse.
Specifically, cryptocurrencies present innovations that are disrupting the banking and financial sectors. While major corporations like Tesla, MicroStrategy, and financial giants like Morgan Stanley have embraced cryptocurrency, traditional banking has not.
As a result, crypto exchanges have been a casualty of banking restrictions. For instance, UK-based TSB bank banned customers from trading crypto. The bank stated that low security standards are aiding scammers in setting up e-wallets on crypto exchanges. TSB bank also claimed to have received over 849 crypto fraud claims in just one month.
Crypto users must beware of scams since they are almost impossible to trace and reverse. However, incidents of financial fraud like phishing, malware, and other schemes designed to steal financial information are preventable.
Specifically, the Macropay scam prevention strategy includes an API which segments all locally available payment methods and automates risk management procedures including KYC capture and compliance. In addition, streamlined access to multiple payment methods, through one agreement, aids bypassing traditional barriers to digital payments caused by complex contracts and high onboarding requirements. While, at the same time, reducing the risk of scams.
Macropay Review in Conclusion
In conclusion, innovation allows businesses to evolve and adequately cater to customers’ needs. Advances in digitalization require a corresponding change is how our moneys flows. For change to be successful, the innovation offered must be agile, flexible, fast, and secure. To meet these requirements, business require custom solutions that can adequately meet their needs.
To learn more about bespoke tech and financial solutions offered by Macropay, contact them today.