We enable affluent users to create end-to-end digital investing experiences tailored to their unique needs.
Virtuse is Europe’s first blockchain private banking solution that enables enable users to manage their cryptocurrencies, traditional financial instrument, and Euro deposits in one place with the safety and convenience of a European bank account.
Based in Bratislava, Virtuse is a trusted partner in digital wealth services – enabling private clients and institutions to profit in innovative digital offerings. Virtuse is also operational in Singapore, Prague, and Monaco.
By investing only 1% of your wealth you’ll stay at the top of the game, and without breaking a sweat you’ll get an asymmetric return with the non-correlated assets in your portfolio. We’ll work with you to create an end-to-end experience tailored to your unique needs.
The wealth management market is a maturing space with rapid disruption of roles. According to Accenture 35% of market share is at risk by 2020, with competitors ranging from traditional banks to new entrants using digitally disruptive technology and entering the wealth management space.
Private banks focus on building strong client relationships, but there is a lack of technological integration and digital asset capabilities which could be damaging in the future. Organizations must prepare for both client and workforce demographics to shift as Millennials are set to surpass Baby Boomers as the largest generation. 75% of the workforce will be comprised of Millennials by 2025, bringing along their digital expectations.
Research shows that 44% of Millennials are “Highly Interested” in digital services that provide access to their cryptocurrencies and mobile services to help them whenever they need it. For ultra-high net worth individuals, this figure climbs to 63%, showing a correlation between youth and wealth in terms of increased mobile services and access. Millennials are the most extensive users of digital and/or social media, but Gen-X and Baby Boomer customers also want to stay connected, even if they do not perceive the use of digital and social media as critical.
Despite Hight Net Worth (HNW) segments’ obvious appetite for mobile banking solutions, the whole industry suffers from:
• A slow response to digital asset adoption and mobile technology innovation
• A lack of willingness to integrate digital asset and advanced technologies as they become available
• A general lack of interest in building digital assets products and services
Globally, mobile and web-based applications are a necessity, not a luxury. Private banking is, by definition, about the connection between the advisor and the client and about the different types and levels of service and customized solutions that private banks and other firms can provide.
HNW clients have limited time and travel extensively. With mobile and web-based applications, we can take the experience to the client, rather than making the client come to the office.
Mobile apps and web-based platforms can and should be an essential part of an integrated digital private banking strategy. Digital solutions will not replace the private banker but will supplement him or her in building relationships and expanding service offerings.
We believe that mobile apps, as part of such digital solutions, are no longer an option for; instead, they will be the gateway to hybrid advice and a key element of digital wealth management suites, ultimately becoming the main tool for client interaction.
Once our AML and KYC policies are completed to include a comprehensive approach to cryptos, we will notify the National Bank of Slovakia (NBS) about our intent to apply for the E-money license and submit our KYC and AML policies. At the same time, we will begin a formal E-money license application (6-month process) for licensing.
We will follow the former Virtuse’s PBS license application with the MAS Singapore, on the same. The licensing that we will be seeking is a MAS Payments Bill Services License and we expect to submit our application in early Q2 2020. Approval should follow by Q4 2020 at the latest, according to our best estimate.
As with any company, there are significant challenges, but the most significant one that we have faced has been cooperation with local and international banks in Europe and Singapore to set up client accounts. We view it as essential to building banking partners if we are to be successful in the HNW and institutional space. Our number-one priority was to partner with local banks to support a segregated client cash account and custody accounts in EUR and USD.
In addition to focusing on a more comprehensive and robust approach to client due diligence and crypto control, we are focusing on developing institutional solutions for custody. For any material allocation to digital assets, we need to provide an ultra-secure desktop-based solution that a large financial institution can feel comfortable with. Currently, our proprietary custodial solution, as well as the leader in digital storage, BitGo.
VeX has strong partnerships with industry leaders and is a player in the digital asset ecosystem, that help us to integrate the best innovations into our systems. In addition to these elements, the private digital bank needs to combine an innovative, client-centric offer with the experience, products, and services appropriate to the expectations of the wealth management market.