No-code/Low-code BaaS Can Help Banks

"Banking is no longer somewhere you go, but something you do." Aptly put by the fintech expert Brett King almost a decade ago, King’s statement predicted not just the digitalisation of banking transactions, but also the rise of the ‘banking as a service’ model that would compel banks to rethink their entire approach to product distribution and customer acquisition.

Push, Not Pull

The need for banks to embed products at the customer’s point of need is well-established by now. Customers no longer visit banks, physically or online, seeking products. They prefer to consume banking solutions within the context of their need. Banking as a Service (BaaS) allows banks to embed their licensed products (accounts, payments, lending, etc.) in customer purchase journeys across non-banking contexts. It also brings in elements of self-service and automation that help a bank deliver the right kind of customer engagement and delight.

Embedded finance experiences like in-app account opening (offered by non-banks), contextual credit at point of purchase, or early wage access within HRMS platforms, are some of the more recognised examples of BaaS today.

No-code/Low-code BaaS Platforms Are Democratising Banking & Finance

The potential for every business to offer banking and financial services to their customers is truly game-changing, and deserves all the excitement it has generated. For example, health, wellness and insurance-related businesses have been amongst the fastest adopters of embedded finance. Use cases like contextual savings accounts, where customers are able to gamify their wellness behaviours and save systematically towards health expenses, or, personalised risk premiums based on lifestyle data, are not just making healthcare more accessible and affordable. They are driving real change towards a more preventive approach in healthcare, which is something the industry has been trying to do for a long time now.

However, the devil, as always, lies in the details. The implementation of a BaaS partnership is an expensive and effort-intensive process, with several technological, business and regulatory complexities involved. As a result, most businesses are unable to invest in the kind of talent and resources required to activate a partnership with a bank. This is not only restricting the adoption of BaaS, but severely limiting the kind of experimentation and scale we need to keep step with evolving customer behaviour.

Improving Agility & Innovation with No-Code/Low-code Platforms

Rapid smartphone and digital banking adoption is driving businesses and fintechs to experiment with more segment-specific contexts. An in-app savings and rewards account for teens on a skill-building platform; a neobank for residential societies on a property management app; or a supply chain finance solution on a pharma merchants’ app are all emerging use cases that show the potential for BaaS to address niche and diverse customer needs.

Click here: https://www.bankingstack.com/blog/no-code-low-code-baas-banks/

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