This time, on WealthTech Unwrapped, Ned speaks with Zennon Kapron, Founder and Director of Kapronasia. They discuss upcoming trends in Fintech such as Digital Banks and Cryptocurrencies and their footing in the banking and finance industry.
Zennon accentuates that digital banks generally have a harder time establishing themselves in developed markets. This is due to challenges around differentiating themselves and a lack of branch infrastructure, unlike established players. On the contrary, underdeveloped markets and underserved segments in traditional markets pose an interesting opening for digital banks as there is hardly any competition from big players.
While on the topic of Cryptocurrencies, Zennon suggests a potential use case. He highlights that it could change the nature of cash transfers for non-governmental organizations and humanitarian aid and that countries like Ukraine are already receiving funds that are digital and wired online. Though this could secure a positive outcome, he cautions that there are still a lot of unclear narratives around Cryptocurrencies. Its large financial backing blinds the reality of its overall business model for what it is, and this poses a challenge for governments, especially when it comes to regulations.
