Traditionally, new entrants have to invest in their own infrastructure and processes and demonstrate compliance with regulations to get a banking license. Hence the market entry threshold for new players has been exceptionally high.
Goals and Objectives
Externalize the high cost of running bank IT, operations, and compliance to maintain a bank license and instead offer this as a service proposition to nonbanking entities that want to offer their customers financial services without wanting to become a licensed bank.
Open APIs, Process automation, and action-less ,processing, Digital products, Cloud (to deliver XaaS models), API gateway, Service-oriented architectures/microservices, Smart automation
Use Case Summary
New players seek to enter the financial services domain but often lack a banking license, the know-how, infrastructure, and security and risk management mechanisms. This creates an opportunity for progressive banks to provide banking as a service or specialized services such as salary as a service or tax as a service.