We outline the market outlook for banking-as-a-service in the financial services industry — from investment trends and leading companies to recommendations for players in the space.
What is banking-as-a-service?
Banking-as-a-service companies enable collaboration between banks and third parties. They help third parties build, launch, and scale banking products and services through banks’ application programming interfaces (APIs). These companies typically partner with legacy banks to provide their non-banking fintech clients with a full range of banking capabilities, which they embed into their clients’ existing platforms.
Features & capabilities
Banking-as-a-service provides banking leaders with several capabilities, including the following:
- Industry-standard middleware solutions
- Anti-money laundering, compliance, and operational support
- Automated clearing house (ACH) network
- Track and ledger any asset type
Benefits
Banking-as-a-service companies offer these substantial benefits to banking leaders:
- Improved operational efficiency
- Reduced labor costs
- Enhanced compliance
- Reduced compliance overhead
- Increased revenue
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