What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
The word “money” has not always meant what it means today. Today when we use the word “money” we refer to “currency”. Both, money as well as currency used to mean very different things until about a couple of centuries ago. Prior to the monetary system that we have today, the world was on a […]
Once upon a time, investors and analysts used to believe in ratios that have been calculated based on the earnings that the company has stated in the Income Statement. Alas! That was once upon a time. Of late, there have been a huge number of frauds and malpractices that have come to the fore. All […]
The high indebtedness of the United States of America is well known. However, USA is still considered to be an economic superpower and its economy even in the faltering state is better than many countries. However, of late Puerto Rico, an American state in the Caribbean islands has revealed information that communicates financial distress. The […]
The Black Wednesday of 1992 refers to the momentous day when the British Pound was under attack by currency speculators. This day created history in the Foreign Exchange markets because of the fact that the Pound was considered to be one of the strongest fiat currencies in the world. In fact it was the reserve […]
In the previous articles we discussed about what derivative contracts are and what are the uses of such contracts? However, one important point needs to be noticed. Today, if a new person wants to buy a derivative contract, they will be bewildered at the sheer amount of choice that they will have at their disposal. […]
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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