Banking-as-a-Service (BaaS): Smart way to offer banking services without becoming a Bank


Banking-as-a-Service (BaaS): Smart way to offer banking services without becoming a Bank

Banking-as-a-Service (BaaS) is a technology that enables fintech companies to access and integrate banking services without building and maintaining their infrastructure. By leveraging BaaS, fintech companies can quickly launch new products and services, reduce costs, and gain access to advanced payment processing capabilities.

According to a survey, 85% of respondents from global financial institutions believe Banking as a Service (BaaS) will make an impact over the next year. More so, 40% of the respondents believe the impact will be significant in the coming months.

Also, 81% of global respondents revealed that they see BaaS as a means to expand their business, improve their distribution channels, and streamline their overall operations.

Without BaaS, non-bank companies that want to offer financial services to their customers would need to build their banking infrastructure, which can be time-consuming, expensive, and challenging. Next, let’s discuss the benefits of BaaS in the next section.


3 Benefits of Banking as a Service for Your Business

With BaaS, fintech companies can focus on developing innovative products and services instead of worrying about building their banking infrastructure. Aside from this, the benefits of using BaaS can provide many opportunities to grow your fintech business, as follows:

 1.     Provides New Revenue Sources. The direct and immediate benefit of getting a BaaS platform for your company. It’s a new and great revenue stream opportunity by giving access to API-based banking products and services to non-bank companies and other financial institutions.

 2.     Enhances Flexibility and Marketability. Fintech businesses have the flexibility to operate their companies because you don’t have to get a banking license. Companies don’t have to create infrastructure from scratch. Your organization also can take advantage of broader market reach in collaboration with different financial institutions.

 3.     Minimizes Costs and Strengthen Security. Banking as a Service allows your companies to save time and money by eliminating the need for costly infrastructure investments. A reduction in developing your system enables your business to offer cutting-edge and personalized products and services to customers. With a vast array of organizations giving financial services, it’s also essential that all parties ensure high standards for security and trust.

  How to Choose the Right BaaS for Your Business Needs

Choosing the right banking-as-a-service (BaaS) for your fintech company is a critical decision that can greatly impact your business. With the right BaaS, you can access a range of banking services such as e-wallet payments, loan origination, and risk management. This allows you to focus on developing innovative products and services that meet customer needs without having to worry about building or managing an internal banking infrastructure.

When it comes to selecting a BaaS, there are several factors to consider, including cost, scalability, efficiency, flexibility, marketability, and security. It’s important to do your research to choose the best option for your business needs.

For more of the cutting-edge BaaS infrastructures that suits your company, email us at  [email protected] for a free consultation!