* This chart and data were pulled from the Rise of Banking-as-a-Service Report by Insider Intelligence. Purchase the report here for $495 to get immediate access to the full analysis. |
A decade-old idea, Banking as a Service (BaaS), has been implemented by a relatively small number of innovative financial services providers over the last five years.
Although regulations don't require banks to offer BaaS, tech-savvy incumbents are now turning to this business model as a 'can't beat 'em, join 'em' strategy to get ahead of fintech disruption. BaaS providers have been exploring ways to gain from their offerings, including: |
- Banks can charge their BaaS clients a monthly fee for their services. These subscription plans usually come with monthly API call limits. The advantages of this pricing model are predictable monthly revenue and greater revenue from low-usage clients compared with a usage-based pricing model. However, it leaves little flexibility for customers and might not be an attractive fee model for those that only need to use the BaaS provider for one particular offering.
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- They can price each BaaS service individually or offer them as a bundle. Another way to directly monetize BaaS platforms is by adding a fee to each individual API call a client makes—also known as pay-as-you-go or usage-based billing. For this model to work, BaaS providers need a number of...
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| This is just a preview of the information and insights you'll find in the Rise of Banking-as-a-Service report by Insider Intelligence. Purchase the report today for $495 to access the full analysis. |
