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Issue #12 - Unpacking Fintech Themes: Banking-as-a-Service
Here is an overview of the series:
Banking-as-a-Service
If you have thoughts or questions to share on this series, please leave a comment.
Where it Fits
Banking-as-a-Service (i.e. banks delivering services via API) is an enabler for Embedded Finance (i.e. distribution of banking services by non-banks). It was catalyzed by Open Banking (i.e. banks sharing customer data via API) and is a driver of Embedded Fintech (i.e. integration of fintech offerings by banks).
Why it Matters
JP Morgan: Rise of Platforms Calls for a Different Kind of Bank
11:FS: Banking as a Service: reimagining financial services with modular banking
McKinsey: Global Banking Annual Review
The Finanser: Why banking will be free (Part 1)
Use Cases
Image Source: World Banking Retail Report 2021
a16z: The Partner Bank Boom
CNBC: This is Goldman’s bet to break into a $32 billion industry serving the world’s biggest corporations
EY: How traditional banks can build a vision for platform-based banking
The Financial Brand: How BaaS Turns Traditional Banks Into Digital Deposit & Loan Machines
Fintechtris: FinTech Platform’s Checklist for Bank Partners
Transcard: What are the Hottest Applications for Banking-as-a-Service?
Key Players
There’s too many players to cover in this article, so here’s some links to great lists.
Tearsheet: Buyers Guide to Banking as a Service 2021
Finextra: Top Six Banking as a Service Providers to Lead the Next Banking Revolution
MONEYgate: Banking as a Service – list of 172 BaaS companies
Challenges
Barack Ferrazzano: 10 Legal Considerations When Offering Banking-as-a-Service
Fintech Futures: Banking’s long road to BaaS
The Global Treasurer: Bank APIs show promise but standardisation issues prevent widespread adoption
Tearsheet: Beyond Features: What makes or breaks your BaaS partnership
Predictions
Capgemini: BaaS platform model is the way forward
McKinsey: What the embedded-finance and banking-as-a-service trends mean for financial services
Thanks for the inspiration: Anish Acharya, Nicolas Benady, James Bessenbach, Patrick Dickson, Dion Lisle, Bernard Lunn, Jim Marous, Dharmesh Mistry, William Morales, Chris Nichols, Ben Robinson, Frank Rotman, Rex Salisbury, Ron Shevlin, Chris Skinner, Israel Sotonwa, Angela Strange, Bill Streeter, Simon Taylor, Luc Teboul, Simon Torrence, Zac Townsend, Rajiv Yadlapalli