Future of Banking & Payments - TOKEN2049 Singapore 2024

I'm Deepa I'm part of the founding team at nois B previously I've been in the Dow space in web 3 in web3 since 34 years and in a previous Li at my own bootstrap company in web2 um I want to talk about something really close to my heart today um crypto Skiller use case it's a question for the AUD audence what is the one killer use case that is clear in crypto anyone anyone one use case that's proven people are using it people find it as a utility companies are making money through it yeah no one I can start it's payments payments in banking today we here like so many so many companies so much data about adoption for example like in Latin America about 30% of people have adopted stable coins um and you keep seeing data like this almost every day right um it's a clear use case payments uh and banking let's look at the history of banking um we had banking 1.0 1950s 1960s we had traditional Banks um brick and mortar banks with limited kind of local distribution only around the people in the jurisdiction they're in and limited technical capabilities then we had like the banking 2.0 which is the world of fintex in the last couple of decades think your revolutes think your monzo think your n26 they made some great strides in like ux for the user uh but they were still built on the Legacy banking infrastructure when I say Legacy banking infrastructure it means cobal it's a programming language built in 1959 60 70 years old I'm talking about Visa base 1 base 2 standards created 30 40 years back I'm talking about Swift standard made in 1970s are the Neo Banks today still use this and are built on top of this I have a different way of looking at this I'm looking at this in the banking 3.0 version um which is onchain Banks imagine Banks where the bankers are separated from banking banking banking Without Borders and empowering users to custody their own funds this is what we call banking 3.0 this is onchain banking let's talk about what are the differences about banking 3.

0 and the other parts right let's say you're a trfi user like there are some good things in trafi like they figured out user experience they figured out the right UI for the users to use banking um they're also they figured out like customer support people are fairly happy and feel heard people have this perceived trust about banks that they can deposit their money there's some bad parts to them current banking system they're slow and costly a card payment today like if you just buy a simple coffee at any Merchant it goes through like 8 to nine intermediaries and and the money from the user to the merchant goes anywhere between 2 to 5 days that's long and the banking system worlds just Monday to Friday 9: to5 right not ideal um and the other part banks are centralized I was just talking to a friend right now and he mentioned he runs a big company in web 3 almost like a 150 people company in 20199 uh 2019 he was debanked by one of the biggest banks in the US all because they got a whff of the fact that his clients were in crypto right so that's the centralization issue that we're facing on the web3 side of things we made a lot of progress there's some good things we give the power to like custody their funds we empower the users web 3 by its very nature it's borderless so it's less jurisdictional problems it's composable it's like Lego blocks people build build on top of each other right but web 3 poor user experience you need to think of so many things before even using a regular app the customer support is in and out not that great and then it's not really connected to this real world web 3 is this like Island where a bunch of people are really enjoying what we happening but um we're just building products for this small island it's time we kind of start building people for regular users for like our mothers and fathers for our brothers and sisters right and that's what we see as banking 3.0 it's merging web 2 and web 3 into building something that is very usable it empowers the users to Conant It Is borderless by its very nature it is 24/7 365 no more Monday to Fridays 9: to 5:00 p.m. right this has the potential to reduce intermediaries no more like 8 n intermediaries between one payment between two people right it can be massively reduced and I'll talk about it more um and the most important part that web3 is lacking today it's like seamless ux making products which people are used to not changing existing user habits and this is banking 3.0 how do we actually achieve this Vision um let me start with a simple analogy um think of your regular bank account or the regular current account right you have a bank account you can send money in you can like send money in through a bank transfer you can send money out send money out through a regular bank transfer or you can use a debit card right to spend that money on banking 3.

0 the code banking infrastructure is no longer on those 50y old traditional systems it's built on web 3 it's a safe it's a smart account a smart contract wallet this holds stable coins in the form of currencies and we also can kyc and KY on chain now this is your base of the account this has card capabilities so you can spend your money like a Visa card it has account capabilities we attach a banking account number to this safe this lets you send money in like a regular bank transfer send money out regular bank transfer right if you're in Europe you can do a sepi instant if you're in Brazil you can do a PIX if you're in India you can do a UPI and this has web3 capabilities what does that mean you can do onchain transfers to this bank account you can do onchain transfers out of it but you can also interact with other web 3 apps imagine you want to lender b or an A or a compound and like a bunch of different things this is all possible and this is what we call banking 3.0 your old bank account with the power of web 3 or your crypto wallet with bank account capabilities and that's magical I like to stress on one thing like connecting this account to local payment rails we'll unlock a prop proposition like never seen before and this is extremely hard imagine your regular web3 wallet connected to whatever payment trails are there in your jurisdiction to do this you'd have to go step by step let's say you start in Europe or the UK you need to like have stable coins you need to get connected to the card system which is Visa and also the sepi instant payment kind of infrastructure you go to Brazil there's pxs you go to the US there's fed now and like in every country so this is all amazing theoretically right what are we doing right now where are we so at nosis pay like our first self custody account is life what does that mean our first onchain account which has an iban link to it is live our debit card is live and it has unparalleled fx-ray you can go anywhere in the world and spend this card and probably get one of the best FX rates in the world and something very cool is we're also one of the first cards to have an ens printed on the card like an ens name and talk talking about ux and making things user easy for the user this is how the dashboard looks like just like a regular bank account you see your balance you can spend money you can see all your transactions you can add funds send funds so this is what we envision as the future we also launched like a cash back system just a couple of weeks back and this is extremely cool um you can get up to 5% cash back on an onchain bank account right now um depending on the amount of gno you hold on your nosis bay safe there's also one cool thing we are doing building in the true ethos of like blockchain and decentralization and something that nosis is very like always has stood on um we want to build products that are open and our first two kind of B2B Partners also like wallets who want to integrate our infrastructure already live one is metri one is Zeal so if you're wallet and you want to make your wallet essentially a Neo Bank come talk to us what's next for us something that I'm super excited about is settlements with Visa we're talking with circle and visa to enable like actual onchain settlements and this is powerful let me tell you why right now like I mentioned to go from the user to the merchant if you're buying a simple coffee it takes 2 to 5 days the funds to flow and end between anywhere between 6 to 9 intermediaries who all take a cut in the middle it's super inefficient it's very costly to the user imagine that if you can directly settle in Stables what this means is Visa gets stable coins they're also kind of doing a pilot with World pay which is a acquirer um to actually settle with them in stable coins which would mean the merchant would receive this and if we can get this entire flow of cycle on chain we can have tremendous efficiency gains it also reduces the collateral cost that the issuers have to kind of keep which is anywhere between like 1 to 4 days of um collateral if you have millions of users this cost can go like in many many millions which can be saved so this is something particularly that we're excited about we're also like thinking about multi-currency cards so not just supporting one card on your bank account or one currency on your bank account but like multiple currencies and that I want brings me to the next thing we're currently live in EA UK and Switzerland but we're going live in Singapore in the coming month and that's why we are here we wanted to launch and you can join our weight list to get like Priority Access to our product and also a chance to win the OG nft the OG nft comes with like a lot of bus um so yeah that's all I can say you can get on the list talk to us um we're super excited to be here and pushing the boundaries of banking and payments thank you