Cash is no longer King.
Banks are no longer cornerstones of the High Street.
Wallets are no longer a tangible object.
There’s been a significant shift in the way consumers and businesses conduct their finances and the new normal is digital.
And front and centre of today’s digital banking landscape is Banking-as-a-Service (BaaS). Through the use of APIs and a white-labelled front-end, BaaS facilitates the type of embedded finance that is no longer just a customer demand – but an expectation.
“BaaS is becoming ubiquitous, as non-banks embed financial services into their experience.”
Deloitte
And this is not a post-pandemic blip. These payment preferences are here to stay. Experts agree that there is no indication that consumers want to return to cash, rather, they prefer the speed, convenience and ease that digital payments offer.
“Global cashless payment volumes are set to double from 2020 to 2025, to almost 1.9 trillion transactions, and to almost triple by 2030”.
PWC
Thirty-seven percent of consumers now say a FinTech firm is their most-trusted financial services brand, compared with 33% who name a bank as their most-trusted brand and 12% who say they trust a wealth management firm the most. Further, 51% of Gen Z and 49% of millennials named a FinTech as their most-trusted financial brand, a sign of incumbent brands’ struggle for relevance with younger audiences.”
Ernst and Young
Banking as a Service allows non-banking brands to offer financial services without investing in building out the costly infrastructure of an actual bank.
Any type of business – from a travel company, a retailer, or a real estate firm – can partner with a BaaS provider like Techcap to leverage their tech and regulatory standing and offer these financial products and services to their customers.
The result? Fast, secure and seamless payments and banking services that not only meet customer demands but are agile enough to continue to do so in the future.
“…a disruptive force for good.”
Finextra
“BaaS will bring together digital technology platforms and finance to change the shape of economies and most sectors for years to come.”
Oliver Wyman
BaaS is the most time- and cost-effective way for non-bank businesses to offer their customer base services such as credit cards, loans and payment capabilities. This means increased value and a seamless, more integrated experience for customers and a boost to revenue as well as a wealth of actionable insights for businesses.
Under a BaaS model, a non-bank business leverages the standing of the BaaS provider. Instead of themselves jumping through the complicated tech, regulation and licensing hoops required to offer financial services, they partner with a provider who has already done so. The BaaS provider then integrates its digital banking services directly into the products of non-bank businesses. The non-bank business can then offer these services without needing to acquire a banking licence of their own – either branded as their own or otherwise.
BaaS means any business can quickly offer branded financial services to its customers cost-efficiently and with minimal risk, minimal outlay and minimal resources.
The players
The features
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