BVNK, a crypto banking firm, recently raised $40 million in a Series B funding round.
This investment will power and accelerate the company’s growth and development. It will allow BVNK to expand its banking services and products in more countries, improve the customer experience, and attract more customers.
Let us explore how BVNK may use this $40 million for its crypto banking services.
Overview of BVNK
BVNK is a revolutionary digital platform that moves money automatically between customers and their trusted network — like friends, family, employers, vendors and banks. This technology enables financial stability and growth for businesses, individuals and families without the need to navigate the complexities of traditional banking products.
Created by experienced entrepreneurs from the technology and finance industries, BVNK was founded on putting people in control of their financial lives. With $40 million in new funding from leading investors such as Founders Fund, our mission is to deliver a safe and secure environment for customers to manage their finances quickly and conveniently.
The new funding will be used to continue innovating across its platform by developing new features which will provide customers with more control over their finances including automated savings goals, money tracking capability for business owners and transparency about spending for families. Solving the complexity underlying the use of money is core to our mission at BVNK. We are committed to providing customers with world-class experiences so they can fully realise their financial potentials.
Details of the $40 million investment
In its recent funding round, digital banking provider BVNK raised $40 million. This additional funding will be used to expand the company’s operations into new geographies, make innovative product releases, invest in customer experience and support, and grow the BVNK team.
BVNK aims to provide customers with a simple and intuitive banking experience that goes above and beyond traditional banking services. The company believes this can be achieved by leveraging proprietary mobile-first technology and providing custom features centred around customer needs. Expanding on their mission to bring modern banking services everywhere, this recent investment will help drive their global expansion plans by opening up new opportunities in multiple countries worldwide.
Aside from international expansion, this new capital will support BVNK’s innovative product development efforts as they continue to create more modernised solutions designed specifically with the customer at heart. In addition, as part of BVNK’s continued commitment towards creating clear communication channels with customers, investments will also be directed towards an improved customer experience and increased support resources across channels such as phone lines, webchat systems and social media platforms. Finally, the investment allows BVNK to make strategic hires across multiple teams to operate at peak potential to fulfil their mission of simplifying tomorrow’s banking experience today.
What will BVNK do with the Funds?
BVNK, a crypto banking services provider, recently secured $40 million in its latest funding round. This brings its total funding to $70 million.
This new capital will expand BVNK’s global crypto banking services. Let’s look at what BVNK plans to do with the funds and how it will benefit its customers.
Expand its crypto banking services
BVNK, a crypto banking service for individuals, businesses and financial institutions, recently received $40 million in funding to facilitate its expansion into the crypto banking space. This investment round will strengthen three core aspects of BVNK’s operations: product, engineering and customer experience.
Product: BVNK has plans to develop a suite of products tailored to meet the needs of its expanding customer base. These products will range from deposit and withdrawal solutions to trading integrations that span different blockchains, such as Bitcoin, Ethereum and Ripple. Additionally, BVNK plans to introduce its signature debit card and other card programs that allow users greater access to merchant services without leaving the platform.
Engineering: The funds will also enable BVNK to further strengthen existing back-end infrastructure to support the increasing customer base and additional products added over time. Current infrastructure works in tandem with custodianship solutions provided by Coinbase Custody to deliver secure storage for digital assets held by clients. The customer base is expected to grow exponentially over the coming years so these processes are regularly tested for their robustness and efficiency capabilities.
Customer Experience: Achieving great user experience is crucial for any business offering digital banking solutions, not least within the rapidly changing space of cryptocurrency (crypto) asset management. As such, BVNK has promised targeted effort on user interface improvements that include simpler onboarding journeys for new customers across all platforms— including mobile—and faster execution times during asset transfers using both fiat money (such as US Dollars) and various crypto tokens. The team also plans on increasing geographic reach through local regulation partnerships while ensuring compliance remains at the core of operations throughout global expansion efforts. Lastly they plan on leveraging artificial intelligence (AI) insights gained from this data to tailor product offering so they suit each customer’s individual needs better over time; curated financial advice can be gleaned by scanning through financial activity stored as part of an individual’s transaction history record stored securely on their account information page – increasing transparency in terms of actual lending outcomes rather than potential rates or rewards marketed only up until closing stages in financing deals happening later on down-the-line.
Develop new products and services
The recent funding of $40 million raised by BVNK will expand the reach and accessibility of their core financial services in the United States, Mexico and Canada. Additionally, the funds will enable BVNK to develop new products and services for their customers.
BVNK is committed to advancing financial inclusion and accessibility for every person in North America. This funding enables them to explore partnerships with local organisations and international companies enthusiastic about building product collaborations to benefit people across North America. In addition, the newly raised funds will allow BVNK to quickly expand its customer base through discounted prices on current products and explore innovative options.
Moreover, the funding will be used by BVNK to invest in research and development and strengthen customer support by growing its team of experienced professionals. This move will benefit existing customers by providing a greater level of customer service, while also allowing new customers convenient access to tech-savvy financial solutions. By increasing operational capacity, this additional investment will enable BVNK to deliver faster payments, create end-to-end digital experiences for those who need it most and build a robust infrastructure to support extensive growth opportunities in a secure environment.
BVNK grabs $40 million for its crypto banking services
Digital banking services provider BVNK recently closed its Series B round of funding, raising $40 million to expand its crypto banking services. This investment will help the company create more opportunities for customers, improve its services, and better serve the needs of its users.
Let’s look at some ways BVNK plans to use the funding.
Increased access to banking services for the unbanked
The recent $40 million investment into BVNK will give the company the resources to increase access to banking services for those who have been traditionally unbanked. This will have far-reaching positive effects on communities worldwide without an opportunity to access banking services. Some of the key advantages include:
1. Increased financial stability: With more access to banking strategies such as savings, credit and investments, people in unbanked communities can obtain greater financial security. In addition, low-cost digital banking services can help people operate more efficient businesses.
2. Improved financial education: By expanding access to digital banking solutions, BVNK will be providing millions of previously unbanked individuals with the financial literacy skills needed for successful money management in the future. This increased education can add valuable stability to many different areas within a community, from food insecurity relief programs and small business initiatives, among others.
3. Safer investing opportunities: In addition to providing users with easily accessible accounts and low-cost digital banking facilities, BVNK also provides tools for smarter investing through its suite of portfolio building tools and automatic savings plans – this allows users to feel confident in their ability to plan for their future without risking more than they can afford.
Increased competition in the crypto banking space
The additional $40 million in fresh capital will allow BVNK to accelerate its mission of operating a global digital bank. The company plans to further enhance its platform offering, including cryptocurrency banking services. With the investment, BVNK is well-positioned to increase competition in crypto banking and grow its user base with better technology.
This new capital will be used strategically over the next 12 months to expand existing products and services, launch new features and capabilities, innovate existing finance technology infrastructure, reduce customer transaction costs, and continue building a team of experienced professionals.
The full suite of credit products that BVNK intends to offer includes secured loans with industry-leading APIs for seamless integration into online banking experiences. This will make financing options accessible to customers at competitive prices across Europe and beyond. Additionally, crypto users benefit from having cash accounts and cryptocurrency wallets where they can store their wealth safely from hacks and cyber-attacks.
Moreover, stronger security protocols such as multi-factor authentication (MFA) for operational processes and encrypted storage of data supporting financial transactions are part of the commitment BVNK has made to safety standards that exceed those commonly adopted in traditional banks today. This allows customers to transact securely via mobile phones or other web devices while accessing premium services available on the platform or receiving real-time notifications when their investments reach certain milestones or face risks based on movements in the market.
Furthermore, the company plans on developing tools for a comprehensive portfolio management analytics engine. Hence, you get an accurate view of your finances under one roof so you can make informed investment decisions quickly and efficiently without ever leaving your wallet behind!
Challenges Ahead
With the recent news of BVNK raising $40 million to extend their crypto banking services, the company faces some tough challenges. This massive funding injection opens up the potential for BVNK to expand their services, but it also comes with some important considerations.
Let’s cover some of the challenges that the company may run into in the following paragraphs.
Regulatory hurdles
One of the most pressing issues for Fintechs is navigating an often complex and changing regulatory landscape. Many regulations vary from state to state, creating an even greater challenge for any business engaged in interstate activity. BVNK must be acutely aware of each jurisdiction’s laws and ensure that their products stay within those legal boundaries.
Additionally, new regulations are constantly being drafted or implemented, making it difficult to maintain compliance with existing laws while at the same time incorporating new requirements into current operations. Frequent meetings with regulatory bodies and occasional procedure changes will be necessary as BVNK’s business develops. Failure to adequately consider or plan for potential regulatory hurdles could seriously affect their growth strategy.
Security risks
As a digital-first bank, BVNK must prioritise security measures when utilising the recent influx of $40 million in funding. According to Akamai’s 2018 Online Threats Report, “[t]he rate of attacks on financial services organisations appears to be increasing.” Furthermore, this study found that throughout 2018, financially motivated attack patterns were up 431 percent yearly. Therefore, BVNK needs to protect their products and services from cyber threats so customers’ sensitive data is protected.
In addition to cyber threats, physical security must also be considered. With more branches opening in different states, BVNK must take proper precautions when protecting employees and customers within each facility. This includes safety protocols during business hours and securing each location after closing time with surveillance technology and human security guards.
Taking risks is vital in the banking industry, but too much risk can cost an organisation dearly. Deploying preventative measures may reduce short term profitability but can also stop breaches before they occur and limit liability down the line. BVNK must factor these security considerations into their spending plans to provide its customers with reliable banking services while safeguarding its reputation as an industry leader in innovative banking options.
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