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Berlin based Solarisbank has plans to dominate European digital sector with help of Samsung

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Digital financial ecosystems have come a long way since being an extremely niche industry a couple of years back. Major organizations like Solarisbank were now on the brink of creating a new financial world where traditional concepts meet the benefits of the digital sphere.

Just recently, Berlin-based Solarisbank revealed that they would be expanding to several European regions by the end of 2021. This growth was synonymous with the growing adoption rate of the digital economy around the world.

Solarisbank chief executive Roland Folz claimed that the move to other countries was an important step in terms of global acceptance.  The organization was also the first bank in Germany to shift toa completely cloud-based system. Solarisbank first shot to fame for its “banking as service” model which drew in some big names from the tech industry.

Samsung remains one of Solarisbank’s largest clients with the South Korean bigwig using the former’s technology for Samsung Pay transfers. The rapid rate of capital movement can be handled by Solarisbank now because of the movement from traditional architecture to Amazon Web Services [AWS].  All of Solarisbank’s core systems were moved to the web hosting service within a year of the company’s launch.

The expansion announcement was considered a major landmark in Solarisbank’s history with Mr. Folz adding:

“We want to grow with our existing partners and ensure that they can spread their business and value proposition across Europe. The ambition level could be higher. The opportunity is there to build a substantial financial powerhouse for any of the big techs out there.”

Samsung’s reach in the global technology sphere contributes to a major portion of Solarisbank’s growth. Statistics showed that there are over 80 million Samsung mobile devices present in Europe, a staggeringly large playing field. Even grabbing a small percentage of this market share would give Solarisbank;’s the major foothold it needs in the continent. This tactic could also help Solarisbank grab a larger piece of the bank account’s pie, a number rising rapidly daily.

 

 

German Finance Minister Makes it Clear that Cryptocurrencies and Blockchain are Important for Economic Recovery

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The cryptocurrency market has come a long way since 2010 when Bitcoin first entered the mainstream financial ecosystem. Since then the world of virtual assets has made progress across multiple sectors while also garnering its fair share of critics and detractors.

Germany has taken the next step in cryptocurrency adoption with German Finance Minister Olaf Scholz assuring the country that crypto reforms and regulations will be sped up as soon as possible. The minister’s statements come at a time when the country was laying down plans to revive the dwindling economy. 

The COVID-19 resultant lockdowns have affected several medium and small scale businesses with many on the verge of shutting shop. According to Olaf Scholz, the German government was seriously considering the European Commission’s proposals to regulate cryptocurrencies as well as its foundation-blockchain technology. Mr. Scholz stated:

“These are important proposals to make Europe’s financial sector really strong. My goal is to move the discussions forward quickly. With the package we can promote innovations in the financial sector so that Europe sets standards worldwide. In order to get out of the crisis with full power, small and medium-sized companies in particular need good access to capital market financing.”

Germany will also be considering the EC plans to expand the pertinent bloc’sd capital markets. This is expected to act as a stimulus for the German economy and help millions of citizens stuck in limbo. Germany is currently the presiding member of the European bloc and will lead a discussion about the reform packages during an October 6 finance meetings meeting. The coronavirus pandemic has wiped out financial progress made over the past decades and governments were on the throes of major changes.

Countries in Europe were currently working together with other nations across the globe, who were also in the same boat. Germany was one of the few regions which recognized that uplifting every strata of society were imperative to overall economic growth. Cryptocurrencies and blockchain technology are set to play important roles in helping the economy, with faster and seamless transactions on the cards. Reports have shown that decentralized technologies were the way forward with traditional banks also going the same route.

Covid-19 Forces Germany into Recession; Over 100 Banks Charging Negative Interest Rates

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According to an announcement made late last week by the Statistisches Bundesamt, as COVID-19 forces Germany into recession, with the biggest quarterly decline since the 2008 international financial and economic crisis, over 100 banks in the nation have started charging clients negative interest rates.

According to data shared on May 15 by Germany’s Federal Statistical Office, Statistisches Bundesamt, the European heavyweights have now entered the recession. As per the data shared by the German Federal Statistics Office:

“The corona pandemic hits the German economy hard … [Q1’s contraction] was the largest decrease since the global financial and economic crisis of 2008/2009 and the second-largest decrease since German unification.”

COVID-19 forces Germany into recession

Moreover, the statistical agency claims that a substantial decline than the latest fall was only recorded back during Q1 of 2009 with a -4.7 percent drop. During Q1 this year, Europe’s biggest economy dropped off by 2.2 percent. In addition, the Eurozone economy recorded a sharp 3.8 percent decline within the same period.

COVID-19 forces Germany into recession

German economists, including the experts from Deutsche Bank, predict an even greater tumble during Q2, as the impact of the COVID-19 pandemic becomes evident. Chancellor Angela Merkel apprises that if the transmission rate of COVID-19 rises, Germany could be forced back into forced lockdown.

Number of banks charging negative interest rates escalating 

Over the recession period and over the course of the coronavirus pandemic, the number of financial institutions charging negative interest rates has been escalating fast. Back in April, only about 80 banks were charging their clients negative interest rates. However, currently this number has increased to over 100 banks. 

According to the German consumer comparison portal, Verivox, over 800 German banks have been studied. Virivox’s investigation has revealed that over 100 banks are currently charging negative interest rates in Germany. The contrast portal has grouped the banks in three classifications.

Furthermore, 94 of the banks have shared their fresh rates online or on their price catalogues. On the other hand, 10 banks are charging fees on demand deposits accounts that are normally free, giving an actual negative interest rate on such accounts. As per the portal, 22 other banks are also charging negative interest rates, but they are yet to publish the new rates online or share.