Web3 Neobank Evolution: Embedding FinTech Highways in Existing User Pathways

In an insightful opinion piece by Vlad Kamyshov, CEO of Evaa Protocol, he examines the evolution of Web3 neobanks. The mainstream approach in this sector has typically focused on launching stand-alone applications, developing fresh user interfaces, and crafting new user acquisition strategies. However, Kamyshov suggests that this traditional playbook is becoming increasingly outdated. Instead, the future of finance in the crypto world envisions that platforms will intersect users on pre-existing applications, rather than expecting users to adapt to new ones.

Exploring the Role of Telegram and The Open Network

Kamyshov draws attention to messaging platform Telegram and The Open Network (TON). Contrary to attempting to become neobanks, TON and Telegram have surpassed this competition. The advantage they hold over emerging crypto banking contenders is their pre-existing audience, seamless interface, in-built distribution within existing user flows, and the provision of immediate financial utility. While other platforms are focused on surface-level features and aesthetics, TON effortlessly provides the underpinning infrastructure to expand Web3 finance invisibly. Kamyshov’s mention of Ethena’s integration into TON suggests a significant shift in the Web3 banking strategy. The future success lies in incorporating influential tools into platforms that users already have confidence in. For instance, Telegram and TON, with their combination of over a billion users and more than 100 million TON wallets, have accomplished a considerable challenge in the world of crypto – distribution.

Telegram’s Influence on Web3 Finance

The crypto industry often equates innovation with reinvention. However, Kamyshov argues that users aren’t seeking out another application to navigate; they crave systems that reduce friction. Telegram is revolutionizing this expectation by ensuring that crypto is incorporated into existing user habits. They propose that enhancing user experience (UX), rather than focusing on annual percentage yield (APY), is the new competitive frontier. Kamyshov believes that the pivotal moment for Web3 finance will stem from behavioral adjustments, rather than technical advancements. For instance, aiding users to deposit USDe and start earning effortlessly, bypassing external wallets, new accounts, and friction, sets a new standard for usability.

The Blueprint for Future Financial Access

Zooming out to a broader ecosystem, TON is emerging as a critical player in the development of a financial super-app. Kamyshov points to Tether Gold’s on-chain access to tokenized gold stored in Swiss vaults and the upcoming tgBTC that enables users to hold and spend Bitcoin directly within Telegram. The utility of these offerings suggest TON’s proactive role in crafting a new finance access layer. Amidst competition across layer 1s on factors such as throughput, fees, and total value locked, Telegram has successfully claimed the territory of user interface. Its integration of Mini Apps, bots, and built-in wallets align financial services with chat, offering an intuitively seamless experience for users.

The Myth of Winning Products in Crypto

Contrary to the wide-held belief within the crypto industry that the superior product wins, Kamyshov claims that the best interface has already emerged triumphant. He explains that the early DeFi playbook was largely dictated by yield-maximizing strategies and technological complexity. However, for the most part, users desire to participate, not necessarily optimize. Telegram’s ecosystem permits participation without the steep learning curve often associated with crypto. Financial services are available directly in the platform users are already acquainted with. Kamyshov shares a cautionary note to projects betting solely on user migration, suggesting that they might be disadvantaged in the era of embedded Web3 finance. The next phase of TON’s evolution, tightly integrated with Telegram, aims to redefine user interaction with finance. Potential personal assistant AI agents, managing transactions, simplifying crypto complexities, as well as predictable future DeFi savings products, further solidify Telegram and TON’s position in the Web3 neobank race. In conclusion, Kamyshov asserts that the race to build the Web3 neobank could already be over. Not because a specific application won, but because one platform, such as Telegram, has managed to redefine the rules. The winners will be those who choose to embed rather than compete, a reminder to the crypto industry to focus on user experience and integration, rather than standalone innovation.