Banking-as-a-Service (BaaS) is a model where banks or financial institutions want to offer their banking service through APIs to third parties. These third parties can then integrate these APIs into their own products and services, allowing them to offer financial services to their customers without the need for costly and time-consuming regulatory approvals and infrastructure development.
BaaS is made possible by the use of Brankas Open Finance APIs, which allow for the integration of banking services into various applications, including mobile apps, e-Commece platforms and other digital channels.
By Providing these services through APIs, banks can offer a more flexible and responsive service that can be integrated into a variety of applications and platforms, BaaS has the potential to disrupt the traditional banking model by allowing banks to expand their reach and customer base by partnerships with third parties.
Let’s say a fintech company wants to offer its customers a digital wallet that can be used for peer-to-peer payments, online purchases and bill payments. However, the company does not have the necessary banking license or infrastructure to provide these services directly. Through BaaS, the fintech company can partner with a bank or a financial institution that offers payment processing and account management service through APIs. The Fintech company can then integrate these services into its digital wallet application, allowing customers to transfer funds, make payments, and manage their account balances through their digital wallet.
Expand your reach & Customer base - by partnering with third-party companies and allowing them to offer financial services using your banking infrastructure.
Generate Additional revenue - by charging fees for BaaS and API usage.
Improve customer experience - by offering seamless integration of banking services into a third-party application.
Build new business relationships - by partnering with innovative fintech companies and other third parties.
Improve Operational efficiency - by reducing the need for internal development and maintenance of proprietary applications and systems.
Updated 10 months ago