Banking-as-a-Service to Bring Agility and Flexibility to Financial Services, Forecast to 2023

Open Banking Becomes a Key Influencer of Customer Satisfaction and Retention

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Financial services industry has been remarkably disrupted by innovative technologies and new business models to-date. Customers are demanding more customer centric, digital solutions from banks as they are becoming more digitally aware of solutions that are being offered by companies outside financial services. The pace of innovation is rapid in financial services, and traditional banks and startups are gearing up for taking banking to the next level by making their databases open to third-party service providers that can build applications using a bank’s data. Some fintech startup companies such as SolarisBank and Fidor have launched core banking platforms, enabling plug-and-play model for a bank to operate with. These platforms give opportunities for banks to launch APIs at a quick and a rampant pace. This study aims to put in perspective the existing trends for Banking-as-a-Service (BaaS) in financial services globally. The analysis will include the current challenges for adopting BaaS, drivers for the adoption of BaaS within financial services. This study also provides an insight on all the APIs that are currently being provided in banking and their workflows.

The analysis will include current challenges for adoption, a well-defined API workflow, and impact of BaaS on banking. This report also covers the top drivers and restraints that determine the adoption of BaaS. This report has a pictorial representation of the companies providing APIs and banking platforms.

Key Questions this Study will Answer

•     What is BaaS?
•     What are APIs?
•     What are the current APIs that are available in the market currently?
•     Who provide APIs?
•     What is open banking?
•     What are the challenges that impact the adoption of open banking?
•     What are the drivers for the adoption of APIs?
•     What are the top areas in banking that would get the best benefits from the adoption of APIs?
•     How does BaaS impact the services and products that are provided by the financial organizations?
•     How are APIs being used in payments?
•     How are APIs being used in foreign exchange?
•     How are APIs being used in remittances?
•     How are APIs being used in accounting?
•     How are APIs being used in authentication?
•     How are APIs being used in billing?
•     How are APIs being used in B2B payments?
•     How are APIs being used in cryptocurrencies?
•     What are banking platforms?
•     What are the next steps that banks must ensure to take for a successful BaaS implementation?
•     What are the growth opportunities for banks by adopting BaaS?

Table of Contents

1. Executive Summary
Key Findings
2. Scope and Definition
Research Scope
Definitions
3. Banking Industry Overview
Current Services and Products Offered by the Banks
Banking Industry Snapshot—Key Challenges
4. Introduction to BaaS
What is BaaS?
API (Application Programming Interfaces)—Enabler of BaaS
APIs in Banking
APIs in Banking Landscape
Payment Processing API Case Study—Dwolla
Trading API Case Study—Zerodha
Remittance API Case Study—PayCommerce
Accounting API Case Study—Xero
Authentication API Case Study—Authy
Billing API Case Study—GoCardless
Lending API Case Study—Kiva
Payment Acceptance API Case Study—iZettle
B2B Payments API Case Study—Gini
Bitcoin Payments API Case Study—BlockCypher
Banking Platforms—Enabler of BaaS
Banking Platforms—The Bancorp
Banking Platform—fidorOS
Banking Platform—solarisBank
5. BaaS Trends
BaaS—Open Banking Trends are Strategic Investments
BaaS—Technology Trends are Strategic Investments
TI Matrix—BaaS Global
Challenger Bank API Case Study—Monzo
Key API Partnerships among Fintech Companies
Regional Trends for Open Banking
Payment Services Directive 2 in the European Union
BaaS API Forecasting
6. Drivers & Restraints
Drivers
Restraints
7. Key API Companies—Global
Braintree
OANDA
Currency Cloud
Intuit
Gemalto
Finexra
BOKU
Invoicera
Coinbase
8. Growth Opportunities and Companies to Action
Growth Opportunity 1—Fintech Partnerships
Growth Opportunity 2—New Age Digital Bank Partnerships
Growth Opportunity 3—eCommerce Partnership
Baas Adoption Stages—Strategic Imperatives for Success and Growth
9. The Last Word
The Last Word—3 Big Predictions
Legal Disclaimer
10. The Frost & Sullivan Story

Infographic



List of Figures & Charts

BaaS: Research Scope, Global, 2017–2023
BaaS: Services & Products being Offered by the Banks, Global, 2017
BaaS: Key Challenges in Banking, Global, 2017
BaaS: What is Baas, Global, 2017
BaaS: API-Enabler of BaaS, Global, 2017
BaaS: APIs in Banking, Global, 2017
BaaS: APIs in Banking Landscape, Global, 2017
BaaS: Payment Processing API Case Study—Dwolla, Global, 2017
BaaS: Trading API Case Study—Zerodha, Global, 2017
BaaS: Remittance API Case Study—PayCommerce, Global, 2017
BaaS: Accounting API Case Study—Xero, Global, 2017
BaaS: Authentication API Case Study—Authy, Global, 2017
BaaS: Authentication API Case Study—GoCardless, Global, 2017
BaaS: Authentication API Case Study—Kiva, Global, 2017
BaaS: Payment Acceptance API Case Study—iZettle, Global, 2017
BaaS: B2B Payments API Case Study—Gini, Global, 2017
BaaS: Bitcoin Payments API Case Study—BlockCypher, Global, 2017
BaaS: Banking Platforms, Global, 2017
BaaS: Banking Platforms—The Bancorp, Global, 2017
BaaS: Banking Platforms—fidorOS, Global, 2017
BaaS: Banking Platforms—solarisBank, Global, 2017
BaaS: Banks* Open Banking Initiatives and Investments, Global, 2015–2017
BaaS: Banks* Open Banking Initiatives and Investments, Global, 2015–2017
BaaS: Banks* Open Banking Initiatives and Investments, Global, 2015–2017
BaaS : Challenger Bank API Case Study—Monzo, Global, 2015–2017
BaaS: Key API Partnerships among Fintech Companies, Global, 2015–2017
BaaS: Regional Trends for Open Banking, Global, 2015–2017
BaaS: PSD2 in the European Union, Global, 2017
BaaS: Drivers, Global, 2017–2023
BaaS: Restraints, Global, 2017–2023
BaaS: Braintree, Global, 2017
BaaS: OANDA, Global, 2017
BaaS: Currency Cloud, Global, 2017
BaaS: Intuit, Global, 2017
BaaS: Gemalto, Global, 2017
BaaS: Finexra, Global, 2017
BaaS: BOKU, Global, 2017
BaaS: Invoicera, Global, 2017
BaaS: Coinbase, Global, 2017
BaaS: BaaS Adoption Stages Strategic Imperatives for Growth, Global, 2017


BaaS: Banks* TI Matrix, Global, 2017
BaaS: API Forecasting, Global, 2017



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