Banking as a Service (BaaS) refers to a business model in which a company provides banking services to other companies or organizations rather than directly to consumers. This can include a range of services such as B. payment processing, account management, fraud detection, etc.
BaaS allows companies to outsource certain financial tasks, which is less costly and more efficient than managing them in-house. It also gives companies access to advanced technology and expertise that they may not have in-house.
BaaS is widely used by fintech companies and other businesses looking to provide financial services to their customers. This could be an attractive option for companies that want to enter the financial services market but do not want to go through the process of obtaining a traditional banking license.
The digitization of financial services has expanded opportunities for consumers and businesses. By using Banking as a Service (BaaS), not only customers but also the company itself can benefit from it. Find out why and learn more about this practice that can become part of your business.
Gone are the days when financial services were directly associated with the word "bureaucracy." A good example is a fintech, which makes payments and transactions, and even borrows money. As clients, our scope is expanded: we choose the services that best suit our needs.
But it's not just individuals who benefit from it. It is the sector that provides financial services and finds promising places to do business and prosper.
Through application programming interfaces, companies can offer financial services tailored specifically to their customer profiles. The most classic resources include creating digital accounts, offering credit and debit cards, and making payments and transfers. All of this without the bureaucratic regulatory processes that businesses and customers typically go through at traditional financial institutions.
APIs are the primary tool for enabling banking-as-a-service practices in any company interested in integrating these services. This is because they facilitate communication between developers responsible for financial services and companies that will provide financial services to customers.
In other words, your company can run banking as a service, for example by having a fintech company take care of the financial part of the service. But it is the API that integrates the two parts and allows customers to use the functionality of the tool. In this way, your company entrusts these services to a professional partner without having to build up this expertise and without requiring your own banking license.
Any company can operate as a fintech company, offering more benefits to its customers or even its employees.
For businesses, hiring Kikkin Banking-as-a-Service isn't just about access to technology, it's about gaining more freedom, flexibility, agility, and economics to bring big ideas to life.
In this way, solutions can be conceived that can quickly connect to the needs and cutting-edge services required by Open Finance.
Daniel W. Goldfinger
CEO
Kikkin Group
