US-based crypto-assets firm Kraken asks when was the last time that a banking institution actually put customer requirements, security and “open access to all” first?
David Kinitsky, Kraken Bank CEO, has shared reasons why customers require a “customized” banking structure that “modernizes” the products and services we all use on a regular basis.
As mentioned in a blog post by Kraken, to design the blockchain or distributed ledger tech (DLT)-enabled system that aims to be “more secure than traditional payment processing technologies,” Michael Giorgio was hired as Chief Operating Officer of Kraken Bank where he will be responsible for supporting a “forward-thinking” team.
In September 2020, when the digital assets firm initially announced Kraken Bank, the Wyoming legislature had released a “pioneer” framework to “reimagine” financial services. Michael thinks that the framework supports his goal to “provide an additional level of comfort and safety for our customers.”
The Kraken team writes in a blog post that for the better part of the last 20 years, Michael has been leading talented teams at various commercial banks such as Metropolitan Commercial Bank, Laurel Road Bank, Savings Bank of Danbury, Connex Credit Union and Quorum Federal Credit Union.
Through this work and extensive industry experience, Michael found out what the limitations of the regular financial services sector actually are, the Kraken team noted while adding that crypto-assets “captured” Michael’s imagination and he realized that Kraken Bank could “actualize the potential of this technology.”
Michael and the team are focused on establishing Kraken Bank infrastructure and making sure they’re able to obtain relevant regulatory approvals as well. As noted by Kraken, a “smooth transition for all clients and a safe experience for all customers is our first priority.”
Responding to a question about how he’s worked at community banks for almost two decades and what he believes works about the current system, Michael noted:
“One of the biggest challenges that banks face today is the continued use of legacy technology stacks, in particular their core banking platform. It’s clunky for the staff to use, the UI lacks customization and integration with third party or custom build systems is less than ideal. This becomes a major expense in maintenance and support just to ‘keep the lights on.’”
Michael added that he’s learned that if you want to be successful, then you need to understand that “carefully architecting a newer technology stack (API’s, custom configuration, open banking e.t.c.) becomes a key area of focus.” He also mentioned that “the regulatory burden faced by many organizations only continues to increase,” but “by keeping technology operating maintenance costs down allows you to remain competitive and profitable.”
Michael further noted:
“Globally, Kraken has nearly 7 million clients and has been running a reputable and secure exchange for more than 10 years. We are a company that continues to evolve and stay apprised of an ever-changing landscape to protect your hard earned assets and your confidential information. Security is our culture.”
He also mentioned that Kraken Bank will aim to offer a “simplistic on- and off-ramp from traditional fiat to digital currency positioning us as the most well-rounded financial services provider in the marketplace.”
He added:
“Banks are heavily regulated at both a state and federal level; the oversight and risk management framework built into our bank to comply with state/federal law will provide an additional level of comfort/safety for our customers.”
Michael confirmed that at Kraken, they’re “pleased to work within a regulated environment.”
He continued:
“In my opinion, regulation will help scale adoption especially with institutions that need that compliance framework and with people who are still on the fence about crypto. When someone wants to learn more about this new space, a strong regulatory framework projects confidence for consumers and institutions. Embracing the framework around digital assets will only help continue to propel its trajectory.”