Coin Version has an unique interview with Nikolai Denisenko, founder and CTO of Swiss neo-banking startup Brighty App and Revolut alumnus. Nikolaj has intensive expertise in utilized arithmetic, enterprise course of administration and software program growth. As chief engineer, he constructed Revolut Enterprise, thought of the corporate’s most worthwhile division.
Within the wake of the current EU regulatory transfer, Nikolaj shares insights on constructing a fintech startup, addressing the present challenges of cryptocurrencies and fiat neobanking, and displays on the present state of European fintech, the way forward for crypto adoption, and AI applied sciences.
Q: We have seen serial financial institution failures within the US and EU, and fintech startups are using the wave. What’s your tackle this? Do you see this as an issue or a possibility to indicate your colours?
Fintech startups can’t ignore regulatory uncertainty, market volatility and particularly the belief challenge that exists available in the market. I see the failures of legacy banks as a singular alternative, as fintech startups are compelled to maintain up with altering client wants and resolve issues that have not been correctly solved earlier than—a lot quicker than anybody else available in the market.
On this scenario, fintech corporations like Brighty App can provide new options that prospects want. They’ll bridge the hole between conventional banking techniques and the unbanked (or underbanked) inhabitants, selling monetary inclusion on a wider scale.
Q: Do you continue to see a niche within the neo-banking sector in Europe and globally?
Sure. Initially, that is why we truly began constructing the neobank. The largest downside is the dearth of seamless integration between fiat and cryptocurrencies. Many neobanks provide both conventional banking or cryptocurrency providers, however not each, so there’s a demand for a one-stop answer that permits higher integration of fiat and cryptocurrency providers.
Second, there’s restricted adoption of DeFi amongst neobanks. DeFi merchandise permit customers to revenue and earn from steady crypto cash; Nevertheless, few neobanks provide merchandise resembling betting, rising and lending. The mixture of conventional banking and DeFi might be mutually useful and appeal to a wider use case: for instance, banks can present deposits and crypto-neobanks can provide entry to DeFi merchandise.
As well as, neobanks ought to goal to supply proof of reserves. It will permit them to extend buyer belief as all transactions are accomplished on the blockchain. It is fairly sophisticated, but it surely ought to be accomplished.
And eventually, low availability is an impediment to the mass adoption of crypto-currency neobanks. Total, the person expertise nonetheless wants enchancment. As an energetic person myself, I care and understand how blockchain works, however I do not perceive why the charges are so excessive. In creating the Brighty App product for Europe, we aimed to handle these gaps.
Q: You have already talked about among the obstacles, and my third query is: What are the most important challenges you see for neobanks globally and in Europe?
The EU market is fragmented by nature: language, tradition and regulatory techniques in several member states. This makes it tough for neobanks to increase their actions and create a uniform presence all through the area: every nation of the European Union has one thing particular. They should adapt the app in response to totally different languages and perceive the viewers properly. It is sophisticated, however attention-grabbing nonetheless.
Then there’s the query of profitability. Generally neobanks give attention to growing their buyer base, however neglect that they need to make a revenue so as to survive within the present turbulent market with out relying too closely on their current investments.
Q: As we all know, the SEC is wanting into many cryptocurrency corporations. As for Europe, what’s their regulation and do they violate using cryptocurrencies?
The pattern is mostly optimistic. There are various EU initiatives, resembling MiCA, which goal to create a transparent and balanced digital asset system, develop cryptography regulation, promote innovation and assist Europe turn out to be a hub for blockchain and fintech growth.
I like the place issues are going. All of those efforts will assist drive mass adoption of cryptocurrencies within the area and positively impression Web3-related companies in Europe.
Q: How do you suppose banks will look and work ten years from now? How do you see it?
That is simply hypothesis, however I consider that blockchain and synthetic intelligence will considerably enhance the banking trade within the subsequent ten years. On the one hand, blockchain expertise will optimize day by day operations: for instance, the alternate of data between banks. Banks will prioritize environmental, social and governmental components and turn out to be extra human-centric.
KYC (Know Your Buyer) procedures can even enhance: for instance, you will not should do KYC once more if you open a brand new account.
Q: What are the principle issues to contemplate earlier than creating an app like Brighty App?
We prioritize transparency, regulation, compliance and safety. So all the selections we make whereas creating Brighty App are based mostly on these ideas. Does this make our app safer? Is it handy and clear, as we ourselves would love? Are we offering the most effective service?
We take the identical method in terms of any partnerships: Which one is the most effective in the marketplace and essentially the most handy for our prospects? We partnered with FireBlocks as a result of they supply the most effective storage providers in the marketplace. We now have built-in their providers into our app and plan to enhance the general buyer expertise.
This is essential to us: even when the providers are costly, we goal to supply our prospects with essentially the most safe and premium applied sciences, resembling cloud providers resembling Amazon, that are licensed and adjust to all European GDPR insurance policies. As an organization born in Switzerland, we consider that non-public sound wealth administration ought to be within the DNA of the product.
Q: How does Brighty App differ from different wealth administration apps? Or why ought to I exploit your app as an alternative of another person?
Our objective is to create an accessible, easy-to-use crypto-fiat utility. It presents essentially the most safe and dependable DeFi merchandise we now have examined and licensed, humanizing cryptocurrency and making it simple to know. Brighty App will enable you use cryptocurrency in your on a regular basis life: for instance, shopping for espresso together with your Bitcoin.
We additionally plan to accomplice with corporations that present enterprise accounts and providers for cryptocurrency startups and enterprises. It is an issue we all know all too properly: it took us two or three months as a startup to even open a checking account to pay workers. So it is an amazing house to increase.
Q: What’s your view on synthetic intelligence? Are you hoping to combine AI into the Brighty App?
Sure, after all. We now have already began utilizing ChatGPT in our day by day life as a result of it helps to extend productiveness. So it’s fairly cheap to introduce the facility of synthetic intelligence in design, operations and naturally customer support to make it extra “human”. You see, banks are not often about individuals: they convey in a technical language that prospects do not perceive, and I feel ChatGPT will assist resolve that downside.
One other factor that AI can do is provide private monetary recommendation and portfolio administration, however I feel which may require some regulation. And the third pillar is safety. We’ll begin integrating AI-based fraud detection techniques into Brighty App and have already built-in AI into chats.
I feel a startup must be agile, react to every thing that is occurring round it, what applied sciences are rising, what’s occurring with rules, and many others. It’s a necessity to remain available in the market – and to achieve success as an organization.
