Will Banking As A Service (Baas) Dominate in 2020?

The banking and financial services industry (BSFI) is experiencing disruption due to technological advancements. Mobile banking apps are common and consumers expect access to financial services through easy-to-use digital channels. As a result, startups and established fin-tech companies release innovative products and services. The benefits of emerging technologies are endless, yet most of the banks are struggling with complex legacy systems that prevent them from innovating at the speed of their competitors. A banking app testing company assists banks and other financial institutions to focus on speed and quality.

Bottlenecks to Achieving Innovation at Speed

In an effort to grow in the digital space, banks and financial institutions fail to handle roadblocks to the successful implementation of technology. They need to manage their data more efficiently to anticipate the needs of consumers, making banking processes easier. By 2025, the global data is expected to grow ten times than that of today, states International Data Corporation (IDC). it is not only expected to grow in size but also driven by innovations like artificial intelligence (AI) and machine learning (ML).

Data and Banking Apps Security

All components of the banking ecosystem need to share data for developing and testing applications in a fast and secure manner. Banks and financial services rely hugely on a banking app testing company in order for fin-tech and traditional banks to succeed at innovation. Since enterprises store and process huge volumes of data across various platforms, both on-premises and in the cloud, the complexity of security increases.

Banking As A Service (Baas)

As the BSFI continues to evolve, customers expect quality products and services. This means that banking as a service (Baas) will take over the next decade. Today, customers are used to engaging with their vendors online and expect the same experience when dealing with their financial transactions. Hence, banks need to focus on reducing customer churn rates and producing services that match customer needs.

Conclusion

Banks are facing a lot of pressure from the top-tech players, increasing the market competition amongst banks and other financial institutions. To compete with these industry leaders, banks need to make a transition from providing services to providing value-added customer services. This is why it is called banking as a service. Banking is already a service, but they lookout for products and services that can improve their business position. There is a digital wave in the banking and financial services industry that makes it important to take strategic decisions. Moving into a new decade, banks need to consider customer needs and look outside of their own products to truly provide Baas. so yes, this can be the next big thing for banking and other financial services. More and more enterprises connect with a banking app testing company to ensure they are on the right track. Testing companies provide an insight into the current market trends and customer needs to define their game plan. It helps them in business growth and helps in achieving their goals to release quality software apps at the right speed.