Open banking regulations in Europe showcased a regulatory framework for fundamental financial services.
Banks and fintechs have tried to create various business models over the last decade or so without a strong regulatory framework and have been fairly successful(#Paypal, Amazon etc.).
Over the last few years or so, the industry has seen an acceleration in #bankingasaservice initiatives. Fintechs, traditional tech vendors(Finastra, Temenos etc), banks, all have tried to get a piece of the market.
Interestingly retail, microSME/SME segments are being focused on rather than corporates.
Just in the last few days I came across multiple multi-million dollar investments around #baas initiatives.
Xendit raise about $300 million, Unit raised $100 million, Modulr got another $80 million and these are just a few with substantial valuation.
Combine this with the revolution we are witnessing which is reinventing the definition of “money”, I believe this is a major pivot that will change “banking” forever.
#baas , #bankingasaservice” is a subset of #embeddedfinance, and it is not a new concept.
“A bank offers it’s services to uncharted and existing customer segments via a third party fintech or another financial institution.
As the distribution of the services widens, so does the revenue”.
Basically that is it.