BaaS providers are exploring ways to integrate blockchain technology into their offerings to improve transaction security, transparency and speed. This could allow third-party companies to offer their customers more innovative and secure financial services.
Artificial intelligence (AI) and machine learning (ML)
BaaS providers are increasingly incorporating artificial intelligence and machine learning capabilities into their offerings to improve fraud detection and prevention, risk management and customer experience. This can enable third-party companies to offer more personalised and responsive banking services to their customers.
Open APIs and developer tools
BaaS providers are improving their APIs and developer tools to enable third-party developers to create and customise banking services more easily and quickly. This can enable third-party companies to offer their customers more tailored and innovative financial services.
BaaS providers are increasingly moving their infrastructure to the cloud to improve scalability, flexibility and cost efficiency. This can enable third-party companies to offer more reliable, secure and affordable banking services.
Analytics and data insights
BaaS providers are improving their ability to analyse and make sense of data in order to provide third-party companies with more detailed and actionable information about customer behaviour and preferences. This will enable third-party companies to make data-driven decisions and improve their services over time.
BaaS providers can offer two-factor authentication (2FA) as a security feature to protect customer accounts from unauthorised access. This can include the use of biometric data such as fingerprints or facial recognition, in addition to a password or PIN.
BaaS providers are exploring ways to provide real-time payments that can improve the speed and efficiency of transactions for third-party companies and their customers. This could include the use of instant payment networks such as SWIFT gpi or Ripple, or other emerging technologies.
BaaS providers are developing tools and services to automate compliance-related processes, such as AML and KYC checks. This can help third-party companies reduce compliance costs and improve the speed and accuracy of inspections.
Digital identity solutions
BaaS providers can offer digital identity solutions, such as digital wallets or digital identity verification tools, which allow third-party companies to verify the identity of their customers faster and more securely. This can help reduce the risk of fraud and improve the overall customer experience.
Machine-readable data formats
BaaS providers can offer machine-readable data formats, such as APIs that use JSON or XML formats, which allow third-party developers to more easily integrate banking services into their applications. This can enable third-party companies to create more innovative and specialised financial services for their customers.
Decentralised Finance Integration (DeFi)
BaaS providers are exploring ways to integrate decentralised finance (DeFi) protocols and applications into their offerings to enable third-party companies to offer more innovative and decentralised financial services to their customers. This could include the use of blockchain-based lending, trading or asset management platforms.
Open banking APIs
BaaS providers can offer open banking APIs that allow third-party developers to create new applications and services that use financial data and services from different banks. This can promote competition, innovation and consumer choice in financial services.
BaaS providers can use a modular architecture to build their solutions, allowing third-party companies to choose only the features and services they need and not pay for features they do not need. This can help reduce costs and increase flexibility for third parties.
Data encryption and security
BaaS providers use advanced data encryption and security measures to protect sensitive financial data, such as account and transaction information, from unauthorised access or leakage. This can help ensure that customer data is kept safe and secure.
BaaS providers can use microservices architecture to build their solutions, which break down complex applications into smaller, independent services that can be deployed and upgraded more quickly and easily. This can help improve the scalability, reliability and speed of BaaS solutions.
Big data analytics
BaaS providers can use big data analytics to analyse big data from various sources, such as social media, customer transaction data and market data, to gain insights into customer behaviour, trends and preferences. This can enable third-party companies to make more informed decisions about their products and services.
Payment gateway integration
BaaS providers can offer payment gateway integration, which allows third-party companies to accept different payment methods, such as credit cards, debit cards and e-wallets, through a single interface. This can improve the user experience and make it easier for customers to make payments.