// INDUSTRY UNLOCKED
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FINANCIAL INSTITUTIONS
NEED TO ACT NOW TO MODERNISE
THEIR
PLATFORMS AND HAVE AN OPEN API STRATEGY
READY TO PROVIDE BAAS .
How FIs are enabling embedded finance
With the demand for integrated products rising , banks have the opportunity to provide non-financial institutions with bankingrelated capabilities , making financial services available to consumers when and where they are needed most . Invisible to consumers , embedded finance seamlessly blends into the everyday routine and has become an essential service to the majority of consumers .
Embedded Finance is made possible with BaaS ( Banking-as-a-Service ). Through open APIs ( Application Programming Interface ), financial institutions can distribute core financial products such as payments , mortgages and loans to third parties as part of an integrated service . In simple terms , APIs enable connectivity between systems and platforms . But they also boost innovation by allowing data to be extracted , shared and combined to create new propositions that add real value . Essentially , APIs enable banks to provide access to the data held in its systems to customers or third parties .
To enable open APIs , banks will need to start from the bottom up , reinventing their core and launching digital-first initiatives throughout their business models , technology stacks , software solutions , strategic plans and more . Powered by and fully participating in a platform ecosystem of FinTech solutions , modernisation will help banks to build up and out to become full-service partners with access to a complete customer picture that will enrich the customer experience and make interactions with customers more successful , efficient and profitable . With the ability to offer BaaS solutions , banks can also enjoy a rapid expansion of their distribution channels and increased market reach to new customers .
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