Savings and Investments
According to CEO Sylvia Carrasco, Goldex will focus on helping fintechs add gold to their offerings.
Image source: Sylvia Carrasco / Goldex.
The London-based gold trading app Goldex is massively changing its business model by becoming a B2B gold trading provider for fintechs and financial institutions, AltFi can exclusively reveal.
The startup, which won the AltFi Pitch Off at our London Summit 2019 with its consumer-oriented trading app, is now in the process of winning its first three business customers, including a well-known British fintech company as well as players in Turkey and Dubai.
CEO Sylvia Carrasco told AltFi that after attracting over 16,000 retail customers, she realized that “fishing one at a time” was not the best option for Goldex as marketing and customer service costs began to rise.
“I’m actually an institutional person, I’ve dealt with institutions all my life, and that’s when I realized that we have to start fishing with a net.”
At the same time, Carrasco says that the change in the business model is being triggered by the maturing fintech landscape, in which players “can no longer focus on just one asset class, but rather can focus on savings”.
The convergence of more products, more verticals to satisfy customers, also means that more fintechs are adding gold to their offerings, but typically through ETFs, which, according to Carrasco, is “not good enough”.
Retailers can still use Goldex, but it is clear to the CEO that this is no longer the focus for the company.
In addition to the three fintechs mentioned above, Carrasco is also in talks with other customers in Germany and Great Britain.
Under the upcoming Basel III financial regulations, banks and platforms that offer gold trading must increase their cash holdings, or cash equivalents, to 85 percent for unallocated gold purchases by customers – something Goldex believes it can help with, as it has always been physical gold stocks work through allocation.
“Over the past 18 months we have designed and developed the ultimate solution for B2B and B2B2C companies to compete in their industries and at a time when the gold landscape is changing,” said Carrasco.
“Getting to market first is always a competitive advantage and we are delighted to be in this privileged position.”
Register for our newsletter