Gone were the days where banks operated from brick-and-mortar office. Now people bank through mobile and web experiences. Banking As A Service BAAS extends banking service to those who are in favour of the above trend.
Going Beyond Silos
In the present digital age, customers don’t want their financial information to be restricted by operation hours and proximity to tellers. This age is seeing the end of closed system mindset and financial services is not any exception to this.
Now, its time for financial services industry to shift towards an open way of conducting business. Embracing open collaboration that encourages the customers to use open network and shared technologies at the same time promising adequate safety measures is the need of the hour. Fintech providers are enhancing their modus operandi by building relationships with subscription-based services to offer continuous BAAC services that provides access to music and movies that customers love without any interruptions caused by issues related to payment method. This reduces the friction between subscription-based services and BAAC by emphasising on providing an experience rather than an API.
However, to achieve this, banks have to enter into a partnership that operates beyond its silos. In the present-day digital scenario, not one single company or enterprise can solely offer or build an ultimate experience. Hence, to get real time, instantaneous and trusted results that meets customer expectations, consolidation and collaboration in BAAS, is the key.
Significance of Tech over Banking service
BAAS can only succeed when banks integrate all the things they have historically excelled at and incorporate technology into it. Added to having a best investment team and financial team banks should also possess a technical team that takes care of building softwares, leveraging data analytics and incorporating machine learning for providing a transformative customer experience through BAAS. Hence in this sector, only banks that operates more into technology by centralising their digital experience into the roadmap of their future, can succeed. With lot of complexities revolving around customer touch points banking sector is more suitable to explore what’s possible with data, with digital transformation and with customer experience.
Platforms will decide the future
BAAS can’t happen without adopting a platform mindset. People rely more on platform for all their mobile transaction activities. Customers get more of the services they want, in time when they want and from where they want, through platforms that decouples technology from distribution. Platform companies can get an edge when they encourage great openness in information sharing through a platform that also offers necessary privacy and safety measure in place. This enhances them for a massive scale and faster access to the new features driving their innovation in a seamless and efficient manner.
Being a part of customer-centric industry banks are compelled to provide them with safe, real-time, automated and intelligent solutions for their financial needs. Hence in order to compete and succeed, financial services are being offered outside the physical boundary of banks, by integrating into their digital at hours that are beyond their working hours, at locations beyond bank locations and with an ability that meets the customer needs. However this paradigm shift will not happen in one night, still BAAS is a necessary shift that’s becoming more of an evolutionary process which can affect the way banks operate.