When we look at the reality of banking, it really is about providing complete banking processes, loans, payments, deposit accounts in the absence of the usual banking infrastructure. Many brands are now including this service in their offerings. These brands and businesses are licensed and integrate APIs into the operation to offer banking services.
A lot of brands are embedding financial services into their customer experience. Some of the brands that are taking advantage of this opportunity are Google money and Apple cards. These brands can build better, faster, and cheaper financial products because they don’t need to build infrastructure.
There are some regional differences in the way banking as a service is delivered in different areas. For instance, in the United States, the Durbin amendment was passed after the financial crisis. This legislation governs the way banking as a service is operated in the USA and nowhere else. This amendment allows small banks to charge shops a small percentage of money for every transaction to enable shops to accept payments.
Currently, banks face the decision to either partner with brands or build their bank as a service product. Some banks have already taken advantage of this opportunity, allowing them to provide a more disruptive product.
When we look at the reality of banking, it really is about providing complete banking processes, loans, payments, deposit accounts in the absence of the usual banking infrastructure. Many brands are now including this service in their offerings. These brands and businesses are licensed and integrate APIs into the operation to offer banking services.
A lot of brands are embedding financial services into their customer experience. Some of the brands that are taking advantage of this opportunity are Google money and Apple cards. These brands can build better, faster, and cheaper financial products because they don’t need to build infrastructure.
There are some regional differences in the way banking as a service is delivered in different areas. For instance, in the United States, the Durbin amendment was passed after the financial crisis. This legislation governs the way banking as a service is operated in the USA and nowhere else. This amendment allows small banks to charge shops a small percentage of money for every transaction to enable shops to accept payments.
Currently, banks face the decision to either partner with brands or build their bank as a service product. Some banks have already taken advantage of this opportunity, allowing them to provide a more disruptive product.
