What is Banking as a Service?
Banking as a Service (BaaS) is a banking model that enables digital banks and other third parties to connect directly with banks’ systems via APIs. It allows banking institutions to build offerings on top of the providers’ regulated infrastructure while unlocking the open banking opportunity and reshaping the global financial services landscape.
Tech-savvy legacy enterprises may stave off the danger of fintech by entering into the BaaS industry to share their data and infrastructure. Access to this kind of information will become standard for digitally native consumers in a few years, so banks that start now will be ahead of the curve and likely rewarded with solid demand.
What are the business benefits of Banking as a Service?
BaaS provides scalability to banking operations with flexible advanced banking solutions.
Tech-savvy banking institutions can prevent the encroaching threat of fintech by moving into the Banking-as-a-Service (BaaS) space to share their data and infrastructure.
The BaaS platform avails significant transparency in financial operations.