To the uninitiated eye, traditional financial institutions such as banks appear to be locked in a perpetual state of tension with the fintech revolution. If we asked the average man on the street what is the latest trend in financial services, things like super apps and virtual banks immediately come to mind, with traditional banks often existing as a mere afterthought. This comes as no surprise, as the Asia-Pacific (APAC) region has often been a leader when it comes to pioneering new and innovative financial services models.
However, a new technological revolution is currently underway in the digital financial services ecosystem – one that bears the significant ability to redefine the way we consume goods and services where super apps are more than just a ride hailing or payment service. Enter Banking as a Service (BaaS): a scenario where core financial services such as loans and insurance are readily available through multiple B2B/B2C touchpoints, sparing customers and businesses the hassle of having to go directly to banks.
With 9 in 10 senior executives surveyed saying their organisation is already implementing it or planning to in APAC according to our latest report, it is clear that BaaS will open the next frontier for banking by creating new business models and revenue streams not just for banks, but also develop a whole value chain for fintechs, and consumer-centric businesses as well. So, what can we expect to see from BaaS?
To read the rest of the article, please use this link: https://www.businesstimes.com.sg/asean-business/banking-as-a-service-baas-the-missing-fuel-to-supercharge-growth
4 August 2022