Bahaa Abdul Hussein is a Fintech expert and shares his experiences with his audience through his blogs.
BaaS is a term that occurs frequently in fintech circles, especially over the past decade or so. Often regarded as an integral part of new-age banking, its focus is streamlining and eliminating middlemen and generating customized banking solutions. BaaS platforms have also been integral in transforming banking business models.
The current position of Business-As-A-Service in Banking market
BaaS turnover globally is likely to grow to USD 3000 Billion approximately in the next six years. The popularity of BaaS solutions is increasing day and night across customers and banks alike.
As the demand for BaaS products increases, so do customer expectations. As a result, in order to be competitive, industry players have to consider embracing new technologies and developing increasingly personalized experiences.
The potential for BaaS
Business-as-a-Service offers high compatibility with Open Banking, thanks to the implementation of open APIs.
Open banking has a lot of benefits for the entire banking industry. Through this framework, customer experience will be improved, new modes of revenue can be devised, and dealing with markets that have historically been underserved is made possible. BaaS relies on secrecy and data integration to provide consumer banking experiences.
Role of APIs?
One great way to get into the open banking movement is by first understanding how APIs work. APIs can provide a key that unlocks better innovation and customer experience.
Other Benefits of BaaS
BaaS empowers software developers to deliver more customer-focused versions of products and services with radically less time and effort.
BaaS allows financial technology companies and customers to create the best collaborative financial ecosystem. BaaS promotes inclusivity along with flexibility, which is why it has been especially successful with Business-to-Business transactions.
One significant industry is the digital payments realm. More than half of people over the world make and receive payments digitally. And hence, customers deserve enhanced options regarding payment processing. Banks only offer so many services, and hold the view that some services not meant for everyone. In a BaaS platform, you can have one place for all your transactions, as well as be able to make complicated transactions without worrying about difficulties or transparency.
How is BaaS Useful to Businesses?
First of all, BaaS increases your customer retentivity by providing better data accessibility.
In the new era of financial services, consumers want to participate in the data-gathering process. Using BaaS, data from fintech customers is shared with producers to generate newer metrics. This makes it easier for fintech to offer products that better suit the customer’s needs. It also helps fintech companies to provide reliable, high-quality solutions that users want.
Conclusion
There’s an opportunity to innovate in the BaaS space, which will set us up for success in the future. The environment that BaaS creates has the potential to drive productivity and efficiency. Thank you for your interest in Bahaa Abdul Hussein blogs. For more stories, please stay tuned to www.bahaaabdulhussein.com
