THELOGICALINDIAN - Big banks are more afraid about accident profits to fintech companies such as Bitcoin startups Eightyeight percent of banks admiral accept that their businesses are at accident of accident revenues to these new entrants according to a contempo analysis This accumulation accident could be as aerial as 10 percent at Santander Bank a leaked announcement shows
Also read: Mexico’s New Bill Could Be a Game Changer for Bitcoin
Big Banks’ Profits Challenged
One of the “Big Four” analysis firms, Pricewaterhousecoopers (Pwc), appear “A Global Fintech Report 2017” aboriginal this month, assuming that 88% of surveyed incumbents’ admiral accept their businesses to be at accident of accident revenues to fintech startups. The close wrote:
Last week, Guardian Money reported on a leaked centralized announcement of Santander Bank which reveals that 10% of the bank’s profits appear from its all-embracing banknote alteration business.
The abstracts detail how the coffer accuse six times added than its fintech 
rivals, authoritative huge profits by giving barter poor barter rates. Rather than charging them fees directly, big banks banknote in on the aberration amid the money markets barter ante and the amount they action customers, which is accepted as the “FX margin”.
“Santander fabricated €585m from money transfers – according to about a tenth of its 2024 all-around accumulation of €6.2bn – and that it accuse six times as abundant as battling Transferwise for sending £10,000 from the UK to Spain,” the advertisement wrote.
The announcement informs Santander admiral that new startups entering the money alteration business are “attacking the assisting slices” of the bank’s business, acquainted that:
Known Disruptor: Transferwise
The Santander’s announcement draws absorption to money alteration account aggregation Transferwise, advertence that the account accuse “€64 to move £10,000 from the 
UK to Spain” while “Santander answerable €394 – six times as much”. If Santander were to allegation the aforementioned as Transferwise, “its acquirement would collapse from €585m to €95m, a abatement of 84%,” Guardian Money wrote.
Launched in January 2011 and headquartered in London, Transferwise is a peer-to-peer money alteration account with eight offices worldwide. The aggregation says it has added than a actor barter and processes over $700 million in affairs every month. Unfortunately, the aggregation states in its “Acceptable Use Policy” that it does not accommodate casework to businesses involving bitcoin and added cryptocurrencies.
Upcoming Disruptors: Bitcoin Startups
Many money alteration startups today use Bitcoin in their businesses. Most of them action low ante and no alteration fees. Below are some examples.
Recently, Bitcoin.com interviewed Luis Buenaventura, Chief Technology Officer at Bitcoin remittance startup Bloom Solutions who has additionally accounting a book on remittances. He said that Bitcoin’s “strongest use case was apparently remittances,” at atomic in his country, the Philippines. Bloom Solutions’ website claims to action a band-aid for agents and resellers in the all-embracing remittance bazaar a way to “reduce your all-embracing adjustment and FX Costs by up to 50%.”
The Singapore-based Coinpip is an archetype of a Bitcoin remittance aggregation which offers casework in added than 40 countries worldwide. The aggregation accuse “no forex and added hidden charges”, its website states.
Another archetype is the Hong Kong-based Bitspark, which offers bitcoin-backed remittance account in bristles altered currencies. The aggregation told Bitcoin.com in an interview in February that “in aggressive corridors, absolute costs can be as 
low as 2-3% with acceptable providers on an boilerplate transaction admeasurement of $250 equivalent”.
Then there is Abra, which has a altered business model. The startup uses Bitcoin, acute contracts, and a associate to associate animal teller arrangement to alteration money anon from a sender to the almsman globally after a middleman. The company’s recently-launched app accuse no alteration fees and advertises “low barter rates”, acceptance users to add and abjure funds in bitcoin as well.
How abundant of big banks’ profits do you anticipate will be absent to Bitcoin startups? Let us apperceive in the comments area below.
Images address of Shutterstock, Abra, Luis Buenaventura, and Transferwise
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