Backed by Spain's BBVA, Denizen is a Silicon Valley start-up that is launching the world's first global bank account that will allow for fee-free cross-border payments. Designed in BBVA's in-house incubator and funded by the bank's digital business unit, Denizen is being used to target Spanish expats living in the US.
Unlike existing borderless accounts, such as TransferWise, Denizen does not charge any foreign exchange fees, provides a regular debit card rather than a prepaid one, and allows clients to hold a single balance across jurisdictions. All of these features are key not just to the service, but to Denizen as a company. Focused on creating a premier "account for global citizens," Denizen aims to remove the hassles of international banking.
Why This Trend Is Growing
- Fee-free Cross-border Payments
- The trend of fee-free cross-border payments aims to disrupt the traditional banking industry, which charges hefty fees for cross-border transactions.
- Global Bank Account
- The trend of global bank accounts that allow for holding a single balance across jurisdictions opens disruptive innovation opportunities for Fintech companies to provide seamless cross-border banking services.
- Borderless Accounts
- The trend of borderless accounts that do not charge foreign exchange fees provides market opportunities for Fintech companies to create borderless banking solutions.
Industries Being Reshaped
- Banking
- The banking industry needs to adopt new technologies and business models to stay relevant in the fee-free cross-border payments environment and to avoid becoming obsolete.
- Fintech
- Fintech companies can take advantage of the trend of global bank accounts to offer innovative and disruptive solutions that challenge traditional banking models.
- International Money Transfer
- International money transfer companies need to adapt to the new trend of borderless accounts by offering more competitive fees and services to retain customers.
