Infinant Sponsors CCG Insights Report on Reimagining the Last Mile in Banking
CHARLOTTE, N.C., October 10, 2023 (Newswire.com) - Infinant, an embedded finance platform provider, announces today that it has sponsored a CCG Insights report analyzing how banking-as-a-service is revolutionizing how financial products and services are delivered. CCG Insights, part of CCG Catalyst Consulting, specializes in banking and fintech and brings a valuable perspective from their viewpoint.
Last-mile delivery, the customer experience of the banking ecosystem, has quickly evolved, with consumers and businesses having an array of engagement options that are more tailored to their needs than traditional banking apps. As fintech and brand apps expanded, banks found early success outsourcing their charter to BaaS providers but have now been in the regulatory spotlight for the outsourcing approach.
Specifically, insufficient compliance oversight of their BaaS programs has intensified regulatory scrutiny. Over the last year, several sponsor banks have needed to graduate their strategy to a bank-controlled platform strategy.
Consequently, there has been a shift away from arrangements that obscure the bank-fintech relationship. Instead, banks are moving towards direct models that provide control, enabling banks to own their compliance and risk strategies while having direct relationships with fintech and brands to grow their programs at their desired pace.
The report analyzes the BaaS evolution in three waves:
- One: The foundations of BaaS and how it gained momentum helped community banks diversify their revenue and attracted fintech to build user-friendly banking platforms.
- Two: How BaaS increased its value as banks shifted their focus away from traditional banking, consumer fintech companies, and interchange fees to providing value-added services to clients.
- Three: Looking at the numerous use cases of BaaS, embedded finance, the platform economy, and bank-owned marketplaces.
The development of the platform economy is ideal for banks, as this evolution means they can capitalize on digital transformation. This approach allows banks to distribute their service strengths across multiple distribution channels, securely connecting third-party apps and platforms that drive customers, deposits, and loans.
“Embedded finance is evolving, and it's a privilege to sponsor CCG’s research unraveling the benefits from the bank’s perspective,” states Chris Siemasko, Chief of Staff at Infinant. “We believe embedded finance represents an opportunity for banks to move to a platform economy and work directly with fintech and brands to accelerate their growth.”
By comprehending the evolution of BaaS, banks can grasp the significant growth in the global market expected for 2030 and position their institutions to participate in these channels. Obtain a copy of the report by visiting www.infinant.com.
About Infinant
Charlotte, N.C.-based Infinant provides a flexible platform and launch-acceleration tools for banks to distribute financial products through non-financial institution providers and distribute products and services from fintech through their bank channels. The interlace platform gives banks choices in selecting features, fintech, and processors for complete ownership of their ecosystem so that they can succeed. Click here to learn more.
Source: Infinant
