Leaping forward with Banking-as-a-Service
Banking has changed irrevocably. Over the past 20 years, banking transactions, half of which used to occur in-branch, have migrated predominantly to digital self-service channels. As we go along in this decade, many of these transactions will move out of the bank network altogether, into the realms of
third-party applications. This is possible due to the growing might of APIs and Open Banking, leading to the emergence of newer business models such as Banking as a Service and Embedded Finance.
While this gives non-banks and third parties a chance to venture into the banking world without much friction, banks today have an equally unique opportunity to reinvent themselves by embracing new business models. For this, banks need to mature their API ecosystems and partner with FinTechs and brands evolve innovative and contextual banking products and services.
India has been a leading example worldwide, for the adoption of these newer banking business models. Catalyzed by the regulatory and industry steer, initiatives such as India Stack, UPI, OCEN and more are fueling the bank-FinTech-Third party collaborative innovation and paving the way for a greater adoption of BaaS and Embedded Finance models.
This report explores the emergence of API banking and dives deep into its role in enabling Bankingas-a-Service (BaaS) and Embedded Finance innovations. It covers several BaaS models and sub-types, highlighting the key initiatives in the Indian market which are fuelling the growth of Banking as a Service and Embedded Finance.
- Defining the contours
This chapter defines key terminologies and business models associated with API Banking and highlights different stakeholders at play.
- Banking-as-a-Service – The landscape analysis
This chapter brings the focus on Banking-as-a-Services and entails key discussions around its evolution, opportunities, operating models, and sub-types at play; particularly from an Indian market standpoint.
- Embedded Finance – Scaling the BaaS impact, enriching 31 customer journeys
This chapter delves into Embedded Finance with key discussions on value propositions, opportunities, growth drivers, and examples.
- India is leading the BaaS adoption curve – Robust API 38 foundations are powering the new dynamics
This chapter puts the spotlight on the Indian market and highlights the key initiatives, frameworks, and innovations that are driving the growth of BaaS and Embedded Finance in the country.
- Unlocking true BaaS potential – It is time for banks to scale API maturity
This chapter highlights the key considerations required to scale BaaS propositions and presents a strong case for banks to transform their API infrastructure