- About Us
- Contact Us
Baas (Banking as a Service) stands for reconfiguring the banking value chain through third-party providers to provide customer-centric banking products and services. In particular, banks integrate with financial service providers or fintechs to make the banking journey seamless for their customers, while non-financial organizations embed banking products/services into their offerings.
As more organizations and ecosystems are embedded financial services in their products and services offerings, banks should take the opportunity to decide on their role in this model. ECS Fin has listed six trends to watch to help the financial community understand, identify opportunities, and plan for upcoming threats.
The first and significant trend for financial services in the area of banking-as-a-service is providing simple, holistic, embedded, and direct experiences for customers. Seek an ecosystem that offers as much integration as possible to keep the customer connected to the business.
The regulatory trends, including open banking, open API, and PSD2, promote the development of open culture and universal access. The need to stay compliant with these new requirements is driving banks to consider new Baas business models to take advantage of tech builds and recoup costs.
With the adoption of digitization, including APIs and automation, the financial community can upscale Baas faster, putting embedded finance within reach to enhance the customer experience and create a new source of revenue without incurring the overhead associated with operating a bank. Big techs and Fintech firm like ECS Fin embed financial services into nonbank platforms and apps, helping them stay competitive in the banking ecosystem. ECS Fin priorities are to offer the following:
ECS Fin discovered that nonbank companies across distinct sectors could experience numerous challenges and opportunities. To get it on the right track, we suggest considering three critical questions:
In what geographies and products should we offer Baas?
Where do we stand on white label vs. cobrand?
What benefit do we have for the integrated user experiences?