How to grow your business with BaaS
It’s well documented that living through challenging times spurs innovation. And the 2008 economic crisis was no exception.
Financial technology was ripe for disruption. And as if overnight, traditional banking services were up-ended by new, nimbler service providers who were able to provide faster and more customised experiences.
As smartphones became ubiquitous – at least in developed parts of the world – it permanently changed consumer behaviour and paved the way for successes of the likes of Google Wallet and Apple Pay.
Yet, these spell only the beginning of fintech’s journey.
Today fintech is entering a new era. Driven by technological advancements and regulatory change, any brand can tap into an ecosystem of fintech companies to build financial service offerings natively within their own platforms.
This is embedded finance. And the opportunity is huge.
Banking-as-a-service lets you bake financial services into your technology
Put simply, banking-as-a-service (BaaS) is an end-to-end process through which third parties can access and execute financial services capabilities without having to develop them organically.
By embedding financial services into your business model, you can create, manage and sell innovative financial services, seamlessly as part of your customer journey. This empowers any brand to create financial products that are aligned to the needs of its customers.
And that means new revenue streams, increased loyalty and a stronger brand.
Imagine if your brand could launch its own financial services product without any of the operational considerations or the burdens of compliance and underwriting.
With the same ease of creating an ecommerce platform, you can now access a multitude of financial microservices to create your own bespoke offering. And because your services are part of your offering, they no longer need to chip away at your margins as they have in the past.
The benefits of embedded finance are tangible.
It’s simple economics. Because, if you can build financial services that are contextually relevant, natively into your customer journey, you’ll not only increase your revenues, but will build your brand and customer loyalty.
Instead of paying a fixed percentage of each transaction, you can drive customer acquisition costs down as you scale with fixed price subscription models. And if your financial product or service is more accessible because your customers can spread payments over time – for example – you’ll engage with previously untapped audiences.
User experience is at the heart of your business. As consumers, we’re used to buying furniture, ordering food or summoning a taxi all in just a few taps on our phones. We’re more willing to share personal information with third parties than we were before. Because the perceived value of doing so has shifted.
Develop new revenue streams and make your products stickier with embedded finance
You don’t need to invest resources, time or money to create a game-changing service for your customers. That’s because HUBUC allows you to seamlessly embed financial services into your customer journeys. No matter what payment capabilities you require.
If you’re wondering what opportunities banking-as-a-service could open up for your company, schedule a time for an informal conversation with the HUBUC team.
Interested in receiving regular news from the world of embedded finance? Subscribe here: