What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
The United States banking industry and the economy in general was rocked by the Savings and Loans crisis in the 1980’s. The savings and loans associations had been an important part of the United States banking system. Hence, when one out of every four savings and loans in the US went under water, the nation […]
The Indian equity markets are at an all-time high. This can be largely attributed to the large inflow of savings which is being channelized from the economy to the stock market. A lot of these savings are regularly routed via the mutual fund route. The Indian market is still developing. Hence, a lot of money […]
Entrepreneurs who start up new companies have to deal with a lot of different types of stakeholders. As a result, they have to enter into a wide variety of agreements with these different stakeholders. Over the course of time, it is possible that the entrepreneur and an external party may not agree on some of […]
Contracts govern all transactions whether they are between firms or between firms and private individuals. Indeed, in most of the developed world, any transaction or commercial exchange is usually not undertaken without a contract. This trend is also catching up in the developing world where contracts are increasingly becoming the norm. The importance of contracts […]
A heuristic is a technological term for what is known as a “thumb rule” in common parlance. In the previous article, we discussed the guidelines which need to be followed from a conceptual point of view. However, in this article, we will discuss heuristics more from a technical standpoint. The common points which need to […]
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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