White-labelling: Harnessing the possibilities of unbundling banking
In this webinar, Finastra analyzed how banking as a service is helpful to stay ahead in financial digitization by improving customer experience and boosting revenue.
A bank's cost to appeal to a new customer is typically in the range of $100 to $200 as per consultant, Oliver Wyman. Although with a new BaaS technology stack, it can be as lower as $5 to $35. Innovation in Financial technology is relevant as long as the company engages with money in some form. Consumer-facing companies aren't the only ones who can gain from BaaS. Following the historic transition to e-commerce, which raised demand for digital payments, B2B financial services are undergoing a similar transformation.
APIs, which allow sites and applications to share data that can be used to tailor offerings for customers, can benefit businesses of all sizes. The transactions made possible by BaaS are much more than money movement; they also offer a lot of data that can be analyzed to provide organizations with greater financial transparency and control, as well as revolutionary improvements to the user experience in various of industries.
Traditional banks that can innovate now have a huge opportunity to keep up with the changes and the competition. One method is to form partnerships in which everyone benefits. FinTechs that collaborate with banks can gain quick access to a large customer base, a strong and well-known brand, low-cost funding, and extensive knowledge and experience in risk management, regulation, and other critical domains. Traditional banks, on the other hand, can benefit from a constant inflow of new ideas, services, and products, which they can test out in a cost-effective and controlled manner.
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