Financial services industry has been remarkably disrupted by innovative technologies and new business models to-date. Customers are demanding more customer centric, digital solutions from banks as they are becoming more digitally aware of solutions that are being offered by companies outside financial services. The pace of innovation is rapid in financial services, and traditional banks and startups are gearing up for taking banking to the next level by making their databases open to third-party service providers that can build applications using a bank’s data. Some fintech startup companies such as SolarisBank and Fidor have launched core banking platforms, enabling plug-and-play model for a bank to operate with. These platforms give opportunities for banks to launch APIs at a quick and a rampant pace. This study aims to put in perspective the existing trends for Banking-as-a-Service (BaaS) in financial services globally. The analysis will include the current challenges for adopting BaaS, drivers for the adoption of BaaS within financial services. This study also provides an insight on all the APIs that are currently being provided in banking and their workflows.
The analysis will include current challenges for adoption, a well-defined API workflow, and impact of BaaS on banking. This report also covers the top drivers and restraints that determine the adoption of BaaS. This report has a pictorial representation of the companies providing APIs and banking platforms.
Key Questions this Study will Answer
- What is BaaS?
- What are APIs?
- What are the current APIs that are available in the market currently?
- Who provide APIs?
- What is open banking?
- What are the challenges that impact the adoption of open banking?
- What are the drivers for the adoption of APIs?
- What are the top areas in banking that would get the best benefits from the adoption of APIs?
- How does BaaS impact the services and products that are provided by the financial organizations?
- How are APIs being used in payments?
- How are APIs being used in foreign exchange?
- How are APIs being used in remittances?
- How are APIs being used in accounting?
- How are APIs being used in authentication?
- How are APIs being used in billing?
- How are APIs being used in B2B payments?
- How are APIs being used in cryptocurrencies?
- What are banking platforms?
- What are the next steps that banks must ensure to take for a successful BaaS implementation?
- What are the growth opportunities for banks by adopting BaaS?
1. Executive Summary
- Key Findings
2. Scope and Definition
- Research Scope
3. Banking Industry Overview
- Current Services and Products Offered by the Banks
- Banking Industry Snapshot-Key Challenges
4. Introduction to BaaS
- What is BaaS?
- API (Application Programming Interfaces)-Enabler of BaaS
- APIs in Banking
- APIs in Banking Landscape
- Payment Processing API Case Study-Dwolla
- Trading API Case Study-Zerodha
- Remittance API Case Study-PayCommerce
- Accounting API Case Study-Xero
- Authentication API Case Study-Authy
- Billing API Case Study-GoCardless
- Lending API Case Study-Kiva
- Payment Acceptance API Case Study-iZettle
- B2B Payments API Case Study-Gini
- Bitcoin Payments API Case Study-BlockCypher
- Banking Platforms-Enabler of BaaS
- Banking Platforms-The Bancorp
- Banking Platform-fidorOS
- Banking Platform-solarisBank
5. BaaS Trends
- BaaS-Open Banking Trends are Strategic Investments
- BaaS-Technology Trends are Strategic Investments
- TI Matrix-BaaS Global
- Challenger Bank API Case Study-Monzo
- Key API Partnerships among Fintech Companies
- Regional Trends for Open Banking
- Payment Services Directive 2 in the European Union
- BaaS API Forecasting
6. Drivers & Restraints
- Drivers Explained
- Restraints Explained
7. Key API Companies-Global
- Currency Cloud
8. Growth Opportunities and Companies to Action
- Growth Opportunity 1-Fintech Partnerships
- Growth Opportunity 2-New Age Digital Bank Partnerships
- Growth Opportunity 3-eCommerce Partnership
- Baas Adoption Stages-Strategic Imperatives for Success and Growth
9. The Last Word
- The Last Word-3 Big Predictions
- Legal Disclaimer
- Currency Cloud
- Enabler of BaaS
- The Bancorp