Banking-as-a-Service: A Guide for Software Platforms Key Considerations for Choosing a BaaS Provider: 🔹 Comprehensive Services: Look for providers that offer both payments and other financial services to simplify integration and reduce costs. 🔹Scalability: Ensure the provider can support a variety of financial services as your business grows. 🔹Speed to Market: Choose a provider that allows for rapid product launch and iteration. 🔹Ease of Integration: Opt for providers with developer-friendly APIs and ready-to-use infrastructure. 🔹Regulatory Compliance: Select a provider that handles compliance and regulatory requirements to minimize your burden. https://lnkd.in/eeDETa_g #BaaS #Embeddedfinance #PaymentsServices #Fintech #FinancialAccounts #APIs
Introduction to banking-as-a-service (BaaS) for software platforms Here are five things you should look for in a BaaS provider: 1. Includes payments services The simplest option is to use one solution that offers both payments and BaaS services. This significantly reduces the complexity required to go to market and scale your offerings, lowering internal cost. Because everything is in one system, you don’t have to worry about complicated funds management and customers only have to share their information once, during onboarding, to access a variety of different financial services. This also allows you to continue focusing on your core product while your provider handles the work needed to solve your customers’ financial pain points. 2. Support for a variety of financial services When you first start providing embedded finance services to customers, you may start with only one service, such as cards. As customer demand grows, you may want to provide access to additional services, such as financial accounts. These various financial services are all related to dealing with money—accessing it, storing it, spending it, and moving it—so your systems need to be able to talk to each other and pass important customer information. Rather than scaling your embedded finance offerings using various point solutions, look for a single system that can support a variety of financial services as you expand. 3. The ability to quickly go to market and iterate You may want to test product/market fit to see if there is demand for the financial services you want to integrate into your product. And depending on how your customers react, you want the ability to iterate or scale quickly. For example, let’s say you add payments to your core solution, allowing your customers to accept money on your platform. You see a lot of interest, but customers tell you that they also want the ability to easily pay for business expenses with their revenue. 4. Ease of integration The best BaaS providers make it as easy as possible for you to get started. While there will be some integration time required, you should be able to access developer-friendly APIs and build on top of ready-to-use financial infrastructure. This way, you can focus on how your core business and embedded finance can work together, rather than building banking infrastructure from scratch, yourself. 5. Streamlined compliance and regulation management Services offered through BaaS providers are part of a regulated industry, resulting in a long list of compliance and regulatory requirements you must manage and maintain. For example, offering expense cards means managing user verification, ensuring PCI compliance, understanding KYC requirements, and maintaining measures to reduce fraud. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source Stripe #fintech #banking Brice Ali Alex Michele Nafis Monica Theodora Saleh