Equinix, Inc., a digital infrastructure company, has launched a
report: ‘The Future of Banking-as-a-Serviceâ. It includes
in-depth analysis and findings on how industry attitudes towards
BaaS have changed in response to the Covid-19 pandemic.
Business leaders have been talking about disruptive technology
for many years, but few could have imagined the catalyst for
disruption that 2020 had in store for them when the pandemic hit.
As a result, the pandemic only
accelerated the digital transformation journey, which was
already underway within the sector.
As the digital economy continues to evolve, merchants, consumers
and businesses are changing the way they interact. This has
resulted in a rising demand for personalised experiences which
offer an opportunity to leverage an ecosystem-based value chain
that supports a frictionless user experience.
To take full advantage of this opportunity, increasing numbers
of non-finance digital brands are embracing BaaS. At the same time,
this allows banks to attract new customers and offer a greater
range of services to existing clients. Thus, BaaS is increasingly
seen as a way to complement banksâ core businesses.
Adrian Mountstephens, Senior Manager, Business
Development for Banking & Payments, Equinix, said: âItâs
clear that the global pandemic has brought into focus what
businesses really need to do to go digital. As BaaS promises a fast
and effective route to market for financial services products
embedded in digital channels, we expect to see adoption increase
through 2021. However, there are significant macroeconomic
headwinds across the globe, making conditions challenging for
Report insights include:
- 76% of businesses are more likely to use BaaS as a route to
market since the pandemic hit.
- 91% of respondents view BaaS as a faster way to bring products
- 80% of businesses now see BaaS as a way to extend their reach
into new geographical markets.
Adam Cox, Co-founder and Director, Open
Banking Expo, and joint author of the report: âCovid-19
has magnified the long-term digital shift that has become a
permanent feature of everyday life, particularly as e-commerce has
become more widely accepted by consumers. Until recently, brands
would have partnered with banks to build an application for their
customers, often a frustrating and laborious process. But
BaaSâthrough the use of APIs and licensed banksâ secure and
regulated infrastructure has now removed much of the time and cost
previously associated with the process and made it much easier for
brands to embed services into their own offerings.â
To find out more or to read the report in full click
Equinix: 76% of Businesses More Likely to use BaaS as a Route to
Market since Covid-19 [Report] appeared first on The Fintech Times.