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Banking-as-a-Service Brings Agility and Flexibility to Financial ServicesLONDON, Sept. 6, 2017 /PRNewswire/ -- The pace of innovation and disruption is rapid in financial services, with start-ups giving traditional financial firms strong competition. To embrace the growth of financial technology (Fintech), to follow regulation and to stay relevant in the market, banks are now opening up their customer databases for third-party application developers to build applications and provide innovative services. By allowing third-party application programming interface (API) providers to access their data, banks are able to form successful partnerships with developers and increase their customer servicing, resulting in higher customer satisfaction and retention rates. Frost & Sullivan's research, Banking-as-a-Service to Bring Agility and Flexibility to Financial Services, Forecast to 2023, finds that API transactions in banking are expected to reach 1.7 billion by 2023 at a compound annual growth rate (CAGR) of 22.4% between 2016 and 2023. The research provides an overview of Banking-as-a-Service (Baas) market dynamics, including technology trends in BaaS, and drivers and challenges for adoption. Case studies and profiles of key players as well as API companies globally, including Braintree, OANDA, Currency Cloud, Intuit, Gemalto, Finxera, BOKU, Invoicera, and Coinbase, are provided. To access more information on this analysis, please visit: https://goo.gl/7Fki95 "The use of APIs within banking has given rise to new businss models and innovative processes that increase the customer centricity quotient in their offerings. Incumbents from banking and financial service sectors are looking beyond legacy systems and analytics to drive customer satisfaction and retention," stated Digital Transformation Global Programme Director Jean-Noël Georges. "Fintech start-up companies such as SolarisBank and Fidor have launched core banking platforms, enabling plug-and-play models. These platforms will enable banks to launch APIs at a quicker and rampant pace." BaaS provides financial service providers and start-ups with tremendous growth opportunities, such as effective payments enablement, improved internal efficiency, increased customer retention, and quicker servicing. BaaS regional trends for open banking include:
"By opening up databases to third-party developers/API providers, banks must be in a position to provide the best data security management," noted Georges. "Financial organisations store a lot of customer data, such as addresses, account information and card details, attracting cyber-attacks and data thefts. Loss of this data would directly result in the loss of goodwill for the financial organization specifically with the GDPR to take place in Europe in 2018." Banking-as-a-Service to Bring Agility and Flexibility to Financial Services, Forecast to 2023 is part of Frost & Sullivan's Digital Identification Growth Partnership Service program. About Frost & Sullivan Contact: View original content:http://www.prnewswire.com/news-releases/banking-as-a-service-brings-agility-and-flexibility-to-financial-services-300514489.html SOURCE Frost & Sullivan |