London-based Railsbank has partnered with Australian neobank Volt and the former plans to improve and provide fintech opportunities in the country. Railsbank wants to use Volt’s banking-as-a-service platform to distribute various products, such as cards and payments. This is a partnership that will contribute to Railsbank’s expansion in the Asian region.
Open banking got a slow start in Australia, but by adding cards in summer 2020, the country also contemplates adding more financial services this year. The concept of online banking has been rising in recent years, and Australia is no exception.
As we know, Open Banking is a fundamentally new type of banking, which was originally intended to improve competition in the market, stimulate innovation and offer more personalized and more profitable services for users. In simple words, this feature allows fintech or other third-party services to have access to the customer’s financial information or financial transactions. The more participants in this system, the higher the competition. Open banking is considered a future in the financial system.
However, as experts note, the country’s embedded finances are still in the development stage, but it is destined for rapid growth. Justin Xiao, who is a current COO of Railsbank notes that the ongoing partnership between Australia and the bank will also pave the way for future partnerships in the Asia Pacific region.
The coronavirus pandemic in 2020 impacted global markets in the world, but at the same time offered some unique innovations, laying the foundation for digital finances. Since the pandemic, the number of people using mobile payments grew sharply. Mobile payments are an integral part of open banking that can boost embedded finance projects. With this partnership, both Volt and Railsbank want to want to allow other films to scale a wide array of banking products through rapid digital enrollment.
While we are talking about Railsbank’s partnership with Volt, it is necessary to point out that Apple also has a sizable presence in the Australian market. The company has grown rapidly in the country, and a lot of people use Apple Pay.
That being said, Apple and Google are two huge names that pressure other participants of the financial markets. They find it hard to provide customers with payments, financial and consumer apps that might not be supported in-house. Railsbank, which is also a part of the Visa Fintech Fast Track program, has built enough reputation and connections to drive the Australian market.
This partnership will indeed benefit both parties and contribute to the expansion of embedded finances in Australia. Railsbank will contribute a lot to the opportunities, and its launch will raise awareness of the bank among Australian brands. Also, in the future, Railsbank will also support firms that are looking to gain a foothold in markets where Railsbank is already presented.
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