Banking-as-a-service to make sizeable dent on financial services in next year, says Finastra
Alongside the impact of BaaS, 94 per cent of respondents believe that open banking is important to their organisation.
New research from open banking platform Finastra shows that industry executives expect banking-as-a-service (BaaS) to make a notable impact on finance in the next 12 months.
Of those executives surveyed, 85 per cent said they anticipate BaaS will make a dent on the industry over the next year, with Hong Kong (92 per cent), the UAE (90 per cent) and Singapore (87 per cent) being the most positive.
As well as predicting BaaS’ future impact, the survey revealed that 94 per cent of respondents said that open banking is important to their organisation, with nearly two thirds (63 per cent) saying it’s helped to improve customer experiences and 59 per cent saying its also attracted new customers.
Executives from the UK were some of the most positive about open banking, with 81 per cent agreeing that open finance is the future of banking.
“Our findings show how financial institutions are already benefiting from Open Banking and, new this year, a growing role for BaaS,” Eli Rosner, chief product and technology officer at Finastra, said.
“We believe that these initiatives have already started paving the way to true Open Finance, helping financial services institutions to develop and enhance the services they provide to their customers.”
The research was conducted in March 2021 by compiling answers from 785 professionals across the UK, US, Singapore, France, Germany, Hong Kong and the UAE.
“For BaaS specifically, 81 per cent of global respondents see it as a means to grow business, enhance their distribution channels, shorten time to market and streamline operations. Valuable insight from so many financial institutions sets the tone for the evolution of financial services as banks and their customers adapt beyond the pandemic and, together with the industry support they provide, serve their communities better,” Rosner added.
Most executives from the UK (82 per cent) also believe that Covid-19 has acted as an accelerator for businesses to adapt and invest in new technology and innovation, with the UK only coming behind Singapore where 87 per cent agree that Covid-19 has accelerated change.