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Embedded Finance and Banking-as-a-Service (BaaS) Report 2024 [ You can access the full report by downloading it through the link: https://lnkd.in/d24gHdfu ] Executive Summary: The "Embedded Finance and Banking-as-a-Service (BaaS) Report 2024" explores the rapid rise of embedded financial services and their transformative impact across various industries. Embedded Finance enables businesses to integrate financial services like payments, lending, and insurance directly into their platforms, enhancing user experiences and opening new #revenuestreams. Banking-as-a-Service (BaaS) provides the #infrastructure that powers these integrations, allowing companies to offer financial services without becoming fully regulated #financialinstitutions themselves. Key Insights: 1. Market Growth: The embedded finance industry is expected to reach $7.2 trillion by 2030. This exponential growth is fueled by the increasing demand for seamless financial services embedded in non-financial platforms such as #retail, #healthcare, #travel, and more. 2. Benefits for Businesses: - Embedded finance helps businesses unlock new revenue streams by offering additional services like #loans, #payments, and #insurance within their ecosystems. - #SaaSplatforms are increasingly integrating financial services to enhance #customerretention and improve #operationalefficiency. 3. Technology and Innovation: - #tchnologies such as #AI and blockchain are revolutionizing embedded finance by enabling faster, more secure transactions and improving fraud detection. - #digitalplatforms are at the forefront of #innovation, with #blockchain facilitating secure cross-border payments and AI enhancing #financialcompliance. 4. Challenges: - #regulatory hurdles and compliance requirements remain significant challenges for #businesses looking to adopt embedded finance. - The need for #secure #datamanagement and safeguarding #customerfunds is critical, particularly for new entrants and #fintechcompanies. 5. Future Outlook: - Embedded payouts, especially in sectors like the #gigeconomy and #crossborderpayments, are seen as the next frontier for #growth. - As #businesses increasingly adopt #embeddedfinancialsolutions, competition in this space will intensify, creating #opportunities for #innovation and #partnership. By offering comprehensive solutions that integrate #financialservices into existing #platforms, #embeddedfinance is reshaping #industries and driving #digitaltransformation on a #globalscale. [ Reported by The Paypers, Sponsored by Celent , Flagship Pioneering , and Money Live News Network ]

Did you know that by 2030, 80% of the world's software will be SaaS? Discover how this shift is reshaping the payments industry in this article by OpenWay: https://bit.ly/3TpiI5X #fintech #payments #innovation #banking #SaaS

BaaS and embedded finance are transforming banking, opening up new opportunities with modern core systems. The future of finance is about agility, composability, and real-time access.

Building enterprise software solutions for highly-regulated customers like banks, payment providers, and other financial institutions is no walk in the park. Sometimes, it takes years to build trust and close a single client contract. Vitosha portfolio company OMNIO and its founder and CEO Stoyan Lozanov have been chipping away in the last couple of years, diligently building a trustworthy name and a product that stands out in the field of compliance management and automation. Check out their fascinating story, or save it for a weekend read: https://lnkd.in/dnS9q7gt 💳🏦👩🏻💻🧑🏻💻👮🏻✨ #regtech #fintech #complianceautomation #enterprise #saas #vitoshaportfolio

Next-Generation Core Systems and BaaS Empower Embedded Finance Embedded finance is enabled by BaaS, which is the infrastructure and underlying pipes that provision a bank’s product and functional stack in a composable way through APIs and third parties. These pieces can then be assembled and curated to offer existing bank products, create new products, or collaborate with a wider variety of stakeholders. There are significant potential benefits to banks. Embedded finance enables rapid customer acquisition and deposit growth by offering products to third party customers. This can be either in a home market to customers of a non-FS partner or as a new market entry strategy. Revenue grows through shared information interchange, deposit growth, or fees associated with services like permissioned data access. Celent is even seeing financial institutions insourcing capabilities from other banks (e.g., ID verification, payments). However, many banks have glaring technology gaps in their core platforms, which make engaging in embedded finance either difficult or impossible. Capturing this opportunity will require core modernization. Celent sees a few areas where incumbent core platforms struggle to deliver BaaS or embedded finance. Expensive to make changes or create new products: Legacy platforms have long timelines to create or release new products, and it’s often expensive. Even small changes can take months. Limited composability or API support: Older technology will struggle to provide granular composability necessary for embedding new product propositions into third party channels. Many don’t provide enough public API support. No access to real time data or support for payments: Third parties leveraging embedded finance will require real time event-based interactions with the core. Monolithic, batch-based systems of the past are unable to handle or support these requests. Difficult to scale: Legacy cores can have a difficult time handling an influx of new customers or transactions. The time to scale with traditional infrastructure is a major barrier. Banks looking to offer embedded finance need to begin exploring more modern core platforms that can support BaaS. Figure 3 shows that banks need a core that is deployed in the cloud (i.e., cloud native), can support SaaS-based platform delivery, can deploy capabilities (either from the core vendor or ecosystem providers) as discrete services, and can operate in real time. 👉 Subscribe for more insights https://lnkd.in/d94JgWBU Source Mambu #fintech #corebanking #banking Leda Glyptis Florian Alex Ali

Thank you, Sam Boboev, for posting this explanation. At Ancient, we specialize in open banking APIs and embedded finance development. The future is here. Love to chat with any banks or fintechs that embrace the open ecosystem movement. #fintech #banking #API #openbanking

I’m excited to share a recap of Finextra's latest webinar with Bottomline, "SaaS Savvy: Preparing for Embedded and Data-Driven Bank Payments." The webinar covered how banks can stay in tune with their customers, boost their return on investment, and harness the power of AI to make their payment systems even better. Plus, there are some fantastic tips from corporate treasury teams on how to make SaaS migration a breeze. Don’t miss out on the trends shaping the future of banking! Check out the full summary here ⬇️

🌐 Catalyzing Financial Innovation: The Intersection of DeFi and BaaS for B2B 🌐 In the rapidly evolving landscape of finance and technology, the confluence of Decentralized Finance (DeFi) and Blockchain as a Service (BaaS) is creating unprecedented opportunities for B2B companies. This synergy offers a blueprint for financial innovation, combining the agility and efficiency of DeFi with the accessibility and scalability of BaaS. Here’s how this powerful combination is transforming B2B financial operations: 1. Accelerating Financial Processes: BaaS platforms provide the infrastructure for DeFi applications, streamlining complex financial processes from lending and borrowing to payments and settlements. This acceleration enables B2B companies to operate more efficiently, reducing transaction times from days to minutes. 2. Reducing Operational Costs: By leveraging DeFi protocols on BaaS platforms, businesses can bypass traditional financial intermediaries, significantly cutting down on transaction fees and other associated costs. These savings can then be reinvested into the company, driving growth and innovation. 3. Enhancing Liquidity and Access to Capital: DeFi opens up new avenues for accessing liquidity and capital through mechanisms like liquidity pools and tokenized assets. For B2B companies, this means greater flexibility in managing cash flow and funding expansion projects without relying on conventional credit facilities. 4. Fostering Global Transactions: The global nature of DeFi, facilitated by BaaS, enables B2B companies to conduct transactions across borders with ease, tapping into international markets and expanding their operational footprint without the hurdles of traditional banking systems. 5. Innovating Revenue Streams: The integration of DeFi with BaaS encourages the development of innovative financial products and services, from tokenization of company assets to offering DeFi-based financial services to clients. These innovations can open up new revenue streams and diversify business models. The Future of B2B Finance: As we stand at the intersection of DeFi and BaaS, the potential for B2B companies is vast and largely untapped. This combination not only enhances existing financial operations but also paves the way for entirely new paradigms of business finance. Is your business ready to explore the transformative potential of DeFi and BaaS? Let’s embark on this journey of financial innovation together, unlocking new opportunities for efficiency, growth, and success. #DeFi #BaaS #FinancialInnovation #B2BFinance #BlockchainTechnology

I’m excited to share a recap of Finextra's latest webinar with Bottomline, "SaaS Savvy: Preparing for Embedded and Data-Driven Bank Payments." The webinar covered how banks can stay in tune with their customers, boost their return on investment, and harness the power of AI to make their payment systems even better. Plus, there are some fantastic tips from corporate treasury teams on how to make SaaS migration a breeze. Don’t miss out on the trends shaping the future of banking! Check out the full summary here ⬇️

APIs are the backbone of modern financial services, but are you getting the most out of them? Check out our latest blog to discover how fintech and financial data APIs, when combined with iPaaS, can significantly amplify efficiency and streamline operations for banks and credit unions. If you're an IT leader looking to optimize your tech stack, this is a must-read! https://lnkd.in/esXnGHH2 #banks #creditunions #fintech #apis #ipaas