Have you heard about BaaS? What would it be like for your company if you could have financial services , such as a debit and credit card, without having to purchase rigid packages from a bank?
This type of solution contributes to a better experience , since it is possible to customize it according to your company’s profile and your needs.
So, did you find it interesting? To better understand what Banking as a Service is, how it works and what its advantages are for your company, continue reading.
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What is BaaS?
Banking as a Service, or simply BaaS, is a singapore whatsapp number data that enables any company to provide financial services, regardless of its industry and without the need for a bank to act as intermediary.
In other words, with BaaS technology, your company does not need to have a relationship with a banking institution to be able to enjoy financial products and services. It can sign up for a digital account with a BaaS, instead of a traditional bank.
In addition, BaaS also allows for customized solutions for your company . Therefore, you can choose the services that make the most sense for your business and pay fewer fees, for example.
This way, your company does not need to purchase a complete package , as most banks sell, and pay annual fees or fees for services that will not be used.
Therefore, even businesses that are not focused on the financial market are able to offer the services of a digital bank, such as:
- debit and credit card;
- digital account ;
- transfers;
- payments, among others.
This way, it is possible to contract services such as a digital account and debit and credit card from a BaaS , for example, instead of establishing a relationship with a bank, which can be much more expensive and bureaucratic.
How does BaaS work?
Now that you understand what BaaS is, you are select a device from the list curious to understand how it all works on a day-to-day basis.
BaaS services are available to your company through an API (Application Programming Interface), which is, in short, a set of programming routines and standards that allow one system to access and use the functionalities of another .
In the case of a Banking as a Service platform, the API used is responsible for communication between the fintech and your company. From there, you can use the BaaS financial services as if you were on a bank platform.
In other words, it is possible to easily contract financial services and products from a BaaS, with the same security and functionalities as a bank , but without the disadvantages, such as high fees and bureaucratic processes.
What are the advantages of Banking as a Service for companies?
Given the growing digital frist database of the financial sector with Open Finance, BaaS has become a very advantageous opportunity for companies in any segment.
A survey conducted by the World Retail Banking Report 2021 showed that, for 81% of respondents, digital financial services, such as BaaS, are more accessible and flexible than those offered by traditional banks and that, for this and other reasons, they feel motivated to make this switch.
