Hundreds of millions of people all around the globe have no checking or savings account! Financial exclusion undermines the quality of life and also delays economic success. The unbanked population has no access to any financial products whatsoever, which is likely to remain if they do not change.
The traditional banks have been unsuccessful in providing a user-friendly ecosystem allowing the unbanked to participate. As it is known, an economy’s banking system is its backbone, and its lack of omnipresence will surely not help the case.
This makes the relevance of Banking-as-a-Service a need more than a trend. Banking-as-a-Service has risen as the latest buzzword in the FinTech industry. The entire industry has been taken by storm because it is redefining the banking industry. It is gradually showing the users what the future of banking could be like.
The primary objective of Banking-as-a-Service is to offer a seamless customer experience that no traditional bank could hitherto offer. Neobanks are not just faster; they are cheaper and have better prospects of reaching the unbanked. But what if it is an amalgamation of Banking-as-a-Service principles with cryptocurrencies?
The result – A crypto-focused service that will take the world by storm and bring about a radical change in the way banks should be operating.
Scallop – A disruptive change all need
COVID-19, with its different versions, has wreaked major havoc in the global economy. It has weakened the financial system all across the world, urging for a new change. DeFi has emerged as the solution to all the problems as it refreshes the traditional banking norms by creating products and solutions based on Blockchain. It is decentralized hence entertaining no financial intermediaries such as banks, exchanges, etc., and instead leverages the power of smart contracts.
DeFi transformation is still at its nascent stages, which is why the inherent complexities have discouraged users from adopting the new way. Token economies have been detached and isolated from the present system. This leads to barriers that prevent people from moving between cryptos and fiat in a seamless manner.
Scallop is a DeFi-enabled neobank that makes use of blockchain to bridge this gap between cryptocurrencies and fiat. It has been established with a vision to form an ecosystem in which users can use their cryptos liberally. It will be easy to convert any virtual currency into fiat currency without any ado.
What does Scallop offer?
It provides solutions to move between traditional and DeFi, bringing cryptos to mainstream use. It connects the user’s digital wallet to banking services providing the exchange of fiat and cryptocurrency under a single unified environment. This will allow for instant, well-coordinated transactions between accounts and wallets. Some of its most exciting offerings are:
It will now be possible to deposit fiat and access high yields from the leading DeFi protocols like Compound, Aave, DyDx, without the role of middlemen, with enhanced security and lesser hassle.
Users have the convenience to buy, sell and trade cryptocurrencies from their bank account directly into their wallets which are tied to Scallop. Users will be able to exchange their tokens for fiat, swap liquidity pool tokens for fiat, and vice versa.
Cross-chain functionality and interoperability has always been a weak link in DeFi. But, Scallop Chain provides a range of cross-financial applications in the Polkadot ecosystem by integrating banking APIs to Scallop Chain smart contracts. Institutional partners will be able to work directly with Scallop to create interest-bearing savings accounts, debit cards, and more.
Scallop Banking accounts
This is for sure the first-of-a-kind solution allowing users to deposit DeFi tokens and spend them without having to withdraw the tokens from the DeFi protocols. Users can set up their personal or business bank account without credit checks with cryptos. Instant KYC will enable users to open their GBP/EUR bank accounts in a jiffy.
These are debit cards connected with bank accounts that can be used for cash withdrawal and shopping anywhere. One can spend their staked DeFi tokens without unstaking them, converting them into crypto and into fiat.
Apart from these products and solutions, Scallop already has several other solutions, including Scallop Hardware wallets, NFT, payments and transfers, NFT’s, and much more. A host of their solutions can also be seen on their official website.