What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
Dividend discount models are the first type of discounted cash flow models that we will study. The model simply discounts cash flows at a given rate just like any other DCF model. The difference lies in the fact that dividend discount models consider only “dividends” as being legitimate cash flows. Therefore, if a firm pays […]
The Finance Function and the Project Office Contemporary organizations need to practice cost control if they are to survive the recessionary times. Given the fact that many top tier companies are currently mired in low growth and less activity situations, it is imperative that they control their costs as much as possible. This can happen […]
Deposits can be divided into two types. The first type is time deposits in which an account holder gives the bank money for a fixed period of time and therefore does not have any right to ask for money before the maturity date has been reached. On the other hand, there are certain types of […]
The commercial banking system has undergone a high deal of innovation in the past few years. A lot of new commercial lending products have been introduced in order to help business manage their finances better. A merchant cash advance is an example of one such innovative credit product introduced by the banks. In this article, […]
In the past article we have seen how Discounted Cash Flow (DCF) is the most appropriate method of stock valuation because it is rational and objective. Now, it is time we have a look at the details of this model. Present Value of Expected Future Cash Flows The basic of this model seems to be […]
We know the way in which Banking as a Platform (BaaP) is using technology to revolutionize the commercial banking industry. We also know how Banking as a Platform (BaaP) is different from Banking as a Service (BaaS).
However, it is still important to understand the various pros and cons of Banking as a Platform (BaaP). Only after such pros and cons are known can a decision be made regarding whether this model should be adopted on a large scale in the commercial banking industry.
In this article, we will try to enumerate the various pros and cons of Banking as a Platform (BaaP). The details of the same have been mentioned below:
Banking as a Platform (BaaP) is a mechanism that allows commercial banks to gain the maximum leverage as commercial banks can generate the maximum amount of revenue by using this model.
Most of the financial data related to corporate customers are processed within the bank’s platform. The end result is that the data is more secure and there is a lesser chance of a breach as compared to other models which have been built using the principles of open banking.
The Banking as a Platform (BaaP) eliminates this redundancy as it eliminates the need for fintech companies to make large capital investments. Instead, these companies can use their funds to help develop better APIs and applications which provide more benefit to the end customers.
Banking as a Platform (BaaP) enables banks to sustain their brand image and even improve it further. Under this model, customers choose a bank based on its reputation and brand image and then later access the ecosystem of applications that the bank provides. Hence, the reputation and goodwill of the banks are enhanced instead of being diminished.
The fact of the matter is that Banking as a Platform (BaaP) is a promising new technology that is in its nascent stage. All the pros are related to tangible business benefits whereas most of the cons are related to technical or implementation-related issues which can be resolved. Hence, it can be said, with reasonable confidence, that Banking as a Platform (BaaP) has a bright future ahead.
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