Fintech-as-a-Service & Banking-as-a-Service platforms
Banks are continuously exploring the benefits of partnerships and open APIs. A natural outcome of this market demand is the rise of “fintech-as-a-service” platforms.
Many predict that Fintechs will prioritize integration with banks in their 2021 business models. There are many startups entirely dedicated to bridging this technology gap. However, others are predicting, Fintechs might also go a step further and extend partnerships well beyond the traditional financial sector:
Some say Fintech will become embedded in the technology stack of the next-generation companies. While the big tech companies like Apple, Google and Uber are currently leading the charge in the development of this space, we need more competition to ensure that this new paradigm will live up to its promise of delivering a better customer experience.
We are also seeing the emergence of the Banking-as-a-Service model, with more and more companies offering the ability to build other brands their own financial products. One example is Solarisbank, which functions as a banking ecosystem for Fintechs, banks, and digital-based companies. By using it, partner companies can make use of lending, digital banking, and instant credit modules, among others.
The technology trends dictate the rules of Fintech & banking game
Without a doubt, 2020 was both a tumultuous and game-changing year for the financial sector. Due to the pandemic and the global economic uncertainty, it evoked, we’ve seen a variety of new trends emerge on the horizon. Fintech experts particularly emphasize the need for operational efficiency. This entails creating recession-proof business models, updating the pre-COVID-19 tech stack, and finding ways to automate tedious work and make savings.
Other important trends to watch out for in 2021 and beyond include bank-fintech collaborations, open APIs, blockchain, and the adoption of robotics. It is our prediction that these and other trends featured in this article will dictate the rules of the fintech and banking game.