What you need to understand about Binance showing interest in buying a bank
Data in its raw form can be misleading at times, you have to spend that extra hour or two to get a much more reflective result when analysing information, this is particularly where many businesses tend to fail to reach a larger customer or consumer base because basic metrics are ignored.
Marketing and Building a brand is hours of crunching data
What's the best way to build a successful business?
It's a thought that comes into everyone's mind once a while, and while there are many answers to this, the fundamentals are much more important to the secondary factors.
One of many primary factors is analysing "user data", this includes who they are, what they do, where they are from, the collective buying power in that location, interest, every day lifestyle, it's part of the basic building process, a huge part of businesses planning and building, often called knowing and understanding your audience.
The banking system and Binance
I had this story bookmarked having seen it like over a day back now, and now I can actually connect it to other events that will point us in the direction of how things are moving.
Have you ever thought of how the name "Binance" came about? Now that I've typed it out, I'm beginning to hear the ring to it: "Banking And Finance" simply remove "anking" and "F" and we have "Binance" - a practical bank from day one!
Philippines Financial Institution Unionbank Now Provides Crypto Custody and Trading Services
The Union Bank of the Philippines, Inc., more commonly known as Unionbank, announced that the financial institution launched bitcoin and ethereum custody and trading services. The ninth largest bank in the country by assets, Unionbank, will leverage Metaco’s platform Harmonize to pilot the crypto services for clients.
On Nov. 2, 2022, the Philippines-based financial institution founded in 1981, Unionbank, revealed it is now offering bitcoin (BTC) and ethereum (ETH) services for customers. According to the announcement published on Wednesday, Unionbank is one of a number of select financial institutions approved by Bangko Sentral ng Pilipinas (BSP) to operate as a virtual asset service provider (VASP).
Binance moves to acquire banks in an attempt to bridge crypto and TradeFi
“There are people who hold certain types of local licenses, traditional banking, payment-service providers, even banks. We’re looking at those things,” Zhao said in an interview at the Web Summit conference in Lisbon, without identifying a target. “We want to be the bridge between crypto and the traditional, financial world.”
Yeah, more like target the population everyone is ignoring, sure makes it more clear why the exchange has been moving through countries seeking licences to operate, still don't understand what's going on?
Here's what is happening
The reason the banking system is making moves to deploy crypto based products is because the technology is becoming more relevant to the current system each passing day, and while many people in the crypto space believe they have a smaller audience to leverage considering that most people involved in crypto would rather go DeFi than CeFi, the truth is, they have the larger audience.
When you look at how many people use the Internet, based on Statista report , that figure is about over 5 billion, of course, mere looking at it we are tempted to believe it leaves a tiny fraction of people considering the world is like over 7 billion in population?
You see, that's the problem, virtually this is the case, but in reality, the little above 2 billion that don't utilize the Internet, coupled with the over 5 billion that do both live in the real world.
Where things get interesting is when you begin to segment Internet users by "activities". This is where we see that the majority of the traffic are gamers, and so unless DeFi is greatly tied to DeFi, it may not benefit much from that traffic.
But then, there's the banking system that literally has access to a grand size audience to leverage. Binance understands the benefits of targeting this as though everyone seems to be too interested in people already in the system, rather than going after those that are not.
The move to acquire a bank or banks will draw quite the cash flow to Binance, so it does in fact position it as one of the potential large banks the crypto space will have.
Thank you and please leave a comment, your thoughts matter to me
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