The Evolution of Banking & Global Landscape
Arthur Bedel ?? ??
Global Payments Leader | Co-Founder of Connecting the dots in Payments... | FinTech Advisor | Ex-Pro Tennis Player
The Banking Ecosystem — Core Banking vs BaaS, the new models to provide Banking services, Global Landscape & Key Trends??
Core Banking vs. Banking as a Service (BaaS)
?? Core Banking (Traditional):
??Definition — Core banking refers to the essential services provided by a bank, such as account management, loans, deposits, and transaction processing.
??Functionality — Core banking systems manage the day-to-day operations of banks, ensuring smooth and efficient handling of transactions and customer interactions.
??Technology — Historically, core banking systems were on-premise, but there is a significant shift towards cloud-based solutions for better scalability and flexibility
?? Banking as a Service (BaaS):
?? Definition — BaaS is a model where 3rd-party providers offer banking services to non-bank businesses through APIs, enabling them to embed financial services.
??Functionality — BaaS providers offer services, including payments, lending, etc., allowing businesses to offer banking products without becoming fully licensed banks.
??Examples — Companies like Treezor - Enable Creative Banking and Toqio provide BaaS solutions, enabling other businesses to integrate financial services seamlessly.
??FinTech Companies — PayPal , Swan , Bankable , Starling Bank , Stripe
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Key Trends & Drivers in Banking??
1?? - Regulation Continues to Drive Growth — Regulations are driving innovation, particularly around open banking, AML/KYC, client money handling, and credit/product suitability
2?? - Convergence of Core Banking & BaaS — Traditional core banking providers and BaaS enablers are increasingly targeting both banks and non-bank clients, leading to a convergence in service offerings.
Examples — 法国兴业银行 acquiring Treezor - Enable Creative Banking & 摩根大通 partnering with Thought Machine
3?? - Evolution of Macroeconomic Conditions — Rising interest rates have led to increased attractiveness of lending for non-bank players (BaaS and LaaS)
4?? - SMEs need BaaS solutions — SMEs businesses have a growing interest in catered banking solutions providing access to credit/capital, spend management & cross-border payments.
5?? - AI, a Game Changer — BaaS platforms are leveraging AI to enhance key banking operations, including client onboarding, credit risk management, and customer engagement.
6?? - Growth of Embedded Finance — Embedded finance, where financial services are integrated into non-financial platforms, is driving new business models and customer engagement strategies.
The banking sector is undergoing significant transformation. Core banking remains the backbone of FinServ, while BaaS is emerging as a pivotal model for integrating financial services across various platforms ??
Source — Core Banking report by Royal Park Partners
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Thank you for sharing Arthur Bedel ?? ?? ! Our full report is here: https://www.royalparkpartners.com/corebanking-baas
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5 个月How do you see these changes impacting the way financial services are provided and accessed globally? Arthur Bedel ?? ??
The self proclaimed, most influential person in payments. Except for Jack Dorsey or those two bros from that other company & definitely not Satoshi Nakamoto, but after all those guys it's me.
5 个月What trends do you foresee in banking innovation and BaaS development? Infuse some sage wisdom.
Digital Transformation Consultant @ Hafz | Digital Solutions Architect | Fintech | AI | IoT | Big Data | Data Analytics | Pioneering Fintech Solutions to Revolutionize Traditional Business Models
5 个月Exciting insights on the evolution of banking and global trends. Can't wait to see how this transformation unfolds. ????
Fintech Leader | CEO & Founder at Agora | Empowering Community Banks, Credit Unions & Fintech with our Next-Gen Modular Banking Platform
5 个月Thanks for sharing Arthur Bedel ?? ??. Exciting to see Agora (Financial Technologies formerly Agora Services) again listed as a key playur in this report ???? by Royal Park Partners