The banks Web 2.0 service, which is central to Fidors US expansion plans, includes a real time international money transaction network which can be implemented through Ripple Labs. The bank also has about 30 business clients that operate in cryptocurrency. Most banks have traditionally avoided virtual currency because of the risk, and Fidor is still working on its business model to manage changing compliance requirements.
The bank has signed an agreement with an unnamed partner to help Fidor launch its web-based banking model in the US, paymentssource.com reports. Fidor’s internet platform, Web 2.0, includes the Smart Cash Account, which allows users to manage funds, buy foreign currency and precious metals, apply for low-value credit and participate in crowd finance through a mobile device. The bank also offers application programming interfaces (APIs) or web tools that developers and ecommerce merchants often use to build payment interfaces.
Fidors branchless model is meant for consumers who do not like traditional branch banking, though officials did not specify a demographic target. Fidor joins a market that includes companies such as Moven and Simple which are using mobile payments as a means to build a broader online financial services relationship primarily with younger consumers. Bank officials believe that banks lack of response to consumer problems is one reason why there are so many financial services and payments startups in the US.
Fidor is pursuing additional markets outside Germany, such as the UK, and plans to serve the entire Eurozone, Brazil, Russia, India and China in the near future.
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