Top 7 Banking as a Platform Examples

If you look atSwagger’s OpenAPI specon the left, you will see all the sections described in this blog article, includingopenapi, info, servers, paths, components, tags, etc. Certain tools allow you to edit OpenAPI specs and then generateapi documentation. The Swagger Petstore specification is an example of an OpenAPI document. Language-agnostic– Clients can interact with API servers without knowing the implementation of the server. Other formats like API Blueprint require third-party code on the server and do not provide any of this code for you. Going back to how OpenAPI defines an API, you will often hear “specification” and “definition” used synonymously.

BaaP Examples and Advantages

I do believe banks must be thinking ahead and assimilate to stay viable and sustainable. Pascal, we are building a ‘public BaaP’ with funding from the EU Horizon2020 programme. The project name is “Open Payments Ecosystem” see the website openpaymentsecosystem.eu for more info.

First, it contributes to a better user experience as they do not have to make a bank transfer each time they make a transaction on the platform as the funds are securely stored there. Second, for the platform, it is easier to convince customers to re-invest, which greatly increases customer retention. Some may say that Banking as a Service is white-label banking and they would be right. You do not need to develop or own specific infrastructure – all you need is a brand and a business development team.

Challenges and Opportunities for Digital White Label Banking Services

This section is a quick glossary for when the reader needs to view general schemas in the broader context of the API . Openapi– A required field defining the OpenAPI spec version of the API. Tools use the version number to parse the OpenAPI spec to generate documentation, for example. Imagine all these properties documented in a series of these key-value pairs that follow the OpenAPI structure. So, this begs the question, if there are several formats available to describe REST APIs, why is OpenAPI so special?

At times, cash payments look like a lot of money to part with, which makes people reconsider paying and buying stuff. In place of digging into their pockets for cash, customers can simply push a button on an app and pay for their goods. If you’re in the financial banking-as-a-platform or banking industry and wish to be at the same pace as the digitalizing world, then you should know that Banking-as-a-service Market is predicted to reach $11.34 Billion by 2030. Rather than view this as an impediment we believe this might be a great advantage.

  • CBW Bank, headquartered in Weir, Kansas, is a small bank that provides corporate and retail banking services.
  • They partnered with CSI to utilize banking platform opportunities to provide their customers with a 360-degree view of banking experience.
  • Certain tools allow you to edit OpenAPI specs and then generateapi documentation.
  • White label banking can be an answer to the challenge platform providers face in attaining customers.
  • Tandem does not give the power to choose, rather it curates best of breed offerings, and delivers a platform experience to its users.

Along with the security, Backend as a Service offers ready-to-use GDPR protocols. Using a BaaS, companies will outsource the data processing requirements to a third party and save additional server setup time. Running, managing, and scaling server infrastructure is complex and time-consuming.

How do banks search for new revenue models?

Because it is primarily mobile-based, Africa FinTech is subject to national jurisdiction in regards to regulating financial markets and mobile telecommunications. The infrastructure as a service layer provides basic infrastructure services through an IaaS provider. A majority of these services would be available on demand and do not necessarily need to be FinTech services .

Banking as a Platform opens up an opportunity for innovations that can help the banks to improve their customer experience, ease the banking operations, and ultimately become tech-savvy like their customers. Even if a server fails, the application will operate normally with a fully redundant architecture because multiple servers are running simultaneously. The infrastructure setup will vary from provider to provider, and it’s essential to clarify this aspect before committing to a plan. It will reduce the risk of losing data and streamline the backup recovery process.

The challenge of the BaaP is to make sure that none of the plugged-in services will contradict with the regulations, imposed by the national or regional supervising authorities. The IaaS provider is using the lowest layer which is physical Hardware. On top of such a regulated bank, Skinner sees a centralized Middleware which he calls Bank-as-a-Service. Looking at it from the bottom, even the Internet is based on hardware. This basic compute and storage environment is virtualized, meaning it is made accessible to external professional users, agnostic of the specific hardware used.

The consequence of having a decomposed stack is that there are multiple ways that the customer’s front-end could be presented. One way would allow the BaaP provider to appear directly as a bank to its customers. This necessitates the provision of a front-end user interface to the end-customers including user authentication and other features. The bank would appear as any other online bank where all banking services are presented and seamlessly integrated in a single user interface.

BaaP Examples and Advantages

For example, an Investment rated “AAA” by S&P and “Aa3” by Xxxxx’x is rated in the Highest Rating Category. If, however, the lower rating is more than one full rating category below the Highest Rating Category of that rating agency, then the Eligible Investment will be deemed to be rated below the Highest Rating Category. For example, an Eligible Investment rated “AAA” by S&P and “A1” by Xxxxx’x is not rated in the Highest Rating Category. Building a marketplace does not mean one has built a platform strategy. Ceding control of the old core, i.e. access to checking accounts, without developing a new strategic core will spell doom for those who trend those places.

– Once the core and product/service decisions have been made, what partners you choose and how you plan to attract them to the platform will be of paramount importance. Aragon also helps to eliminate unnecessary third parties by replacing them with Ethereum Blockchain-based smart contracts. By removing geographical barriers and bureaucracy, the program promises to serve as an incredibly simple digital jurisdiction for everyone. The Ethereum Blockchain-based platform can be used to create and run decentralized organizations. Aragon is an open-source project that is managed by the Aragon Foundation. Read more on the services and packaged solutions which VentureSkies offers for FinTechs.

Top 20 Benefits of Using a Backend as a Service

Answering this first question will make it easier to choose a clear strategy for customer centered products based around it. In addition, answering this question may lead a bank or an insurance company to make an acquisition should the part of the core identified not currently reside within its skills set. A centralized app’s application software is stored on one or more company-controlled servers. You’ll interact with the app as a user by downloading a copy of it and then sending and receiving data from the company’s server. As compared to the phase of deregulation in the telecommunication market, we can expect the emergence of new business models where today nobody is yet thinking of. Statistics show that cyber criminality emerged into a major threat to banking in general.

The origins of OpenAPI start with the engineer Tony Tam of the company Wordnik back in 2009. Tony created a specification that would describe Wordnik’s online dictionary JSON API. To summarize, OpenAPI is aRESTful API specificationdescribing APIs that conform to RESTful architecture. A specification provides an interface for letting humans and computers understand an API and how to interact with it. This protocol allows platforms and systems written in different programming languages to interact. Previously when you needed a loan, you had to apply at a bank and wait some days for it to get approved.

BaaP Examples and Advantages

In the last few years, we have seen a tremendous shift towards cloud services and especially the emphasis on the use of services as means of a platform. Most of the banks have opted to move most of their services https://globalcloudteam.com/ to “Banking as a Platform. This article explained twenty advantages of using a Backend as a Service. Its advantages include a faster development time, shorter time-to-market, lower development costs, etc.

BaaP (Bank as a Platform)

It should be noted, however, that decentralized applications do not have to run on a blockchain network; they can also run on a special type of peer-to-peer network which is not a blockchain. Decentralized applications that run on a P2P network include Tor, BitTorrent, Popcorn Time, and BitMessage. Software-as-a-Service are all software services that can be plugged onto the platform, using standardized interfaces . In the Salesforce example, they could be any commercial service, from a financial service to an accountancy service, communicating via the platform. Such a PaaS provides an environment where services can be programmed and executed. Ata of financial institutions must not leave the area of jurisdiction..

BaaP Examples and Advantages

As such this approach forces them to partner with best of breed offerings – not part of their core offering – and integrate such offerings to their platform for their own users’ benefits. Tandem does not give the power to choose, rather it curates best of breed offerings, and delivers a platform experience to its users. In this model, for financial services, software and technology are not the only end products. Instead, they simply serve as the underlying infrastructure that enables users to interact with each other. As you will already know from Part 1, as a Platform has never really taken off for various reasons.

Ultimate Guide To Build a Business Wiki

Wells-Fargo, a San-Francisco based banking giant, is well-known for its use of technology. It was one of the pioneers in using banking as a platform, and many local banks have followed their approach. Furthermore, this integration with Plaid has helped the bank to improve the customer experience tremendously and also made the banking easier for its customers.

Best API Documentation Tools for 2023

Banking-as-a-Platform enables third-party developers to build products and services for bank customers. Developers can extend platform functionality using APIs, while the platform itself manages data exchange and oversees authentication, as well as ensuring compliance. Ethereum is a versatile platform for developing new dApps, allowing developers to focus their efforts on finding new and innovative uses for digital applications. This could allow dApps to be deployed quickly in a variety of industries, such as banking and finance, gaming, social media, and online shopping.

MNO and few other companies saw the difference and jumped in between banking and bank and successfully got them divorce or at-least manage to find their relationship with banking. Unfortunately most bankers are still not convinced that these scenarios will play out. These bankers are hoping that their retirements hits before they have to make a decision. The board of directors of a lot of community banks feel that they are the pillar of the community and the relationship will continue to be the answer. Bankers must face facts and learn what is going on outside of their four walls.

FIDOR Bank

In consequence, traditional banking services could be virtualized (sourrounded by some Cloud-service wrapping) and provisioned within a composite application service. In contrast to the infrastructure services from the IaaS layer below, these FinTech application services are centered about banking and finance. The reality and status of current availability of services from banks are far it’s behind the capabilities of the modern infrastructures and new e-commerce innovations.