Banking as a Service (BaaS) is paving the way for embedded finance according to a new report by 11:FS
What it is
Banking as a Service (BaaS) offers complete banking processes, such as payments or credit, as a service through modern API-driven platforms.
Third-party brands are embedding financial services in context to create better end-to-end journeys for their customers. BaaS will accelerate the growth of digital business ecosystems.
Why it matters
BaaS offers speed, collaboration, and specialization, enabling companies to bring new propositions to customers far faster than they could alone. This could be a $3.6trn market by 2030.
What to do about it
Competitive advantage will shift to providing and configuring financial services for customer contexts and providing brands with the tools to manage many providers.