What are Corporate Credit Cards? – Different Types of Cards
February 12, 2025
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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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