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What the Tech is Banking as a Service?

White label, BaaS, banking as a service – it’s a lot of information but often the basics aren’t discussed. So, what the tech are they? How can they be used? Find out through our trusted blog, for a better understanding of where the financial world is heading with non-traditional services.
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Unlimit Experts
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Unlimit Experts avatar
Unlimit Experts
Your payment experts

BaaS vs. White Label

Banking as a service is the provision of banking processes as a service using an existing bank’s infrastructure with modern API-driven platforms. BaaS allows any business the ability to embed financial services into its user experience. It’s typically an end-to-end process which provides a comprehensive financial service online. It benefits from a dynamic shift from traditional models, and often can encompass microservices and technologies which have reinvented the process of purchasing and money handling.

Unlimit BaaS *yours truly* has created an end-to-end solution for all payment needs, that combines banking services, card issuing and payment processing and helps companies launch new and innovative digital payment solutions at speed and greater efficiency. So what does Unlimit BaaS’ solution actually help businesses do?

Payments of goods and services is part of everyone’s experience because every business involves selling something in exchange for money. So, if there is a solution that makes the payment process faster and more seamless why wouldn’t a business want to do that? That is where we comes into play. Take Starbucks for example, they could embed Unlimit BaaS’ API solution into their App, allowing their customers a seamless way to pay for their coffee along with additional value-added benefits. Starbucks core business may be selling coffee but with our BaaS offering, it allows not only fintechs but brands to distribute financial products, without the tech, regulatory and resources heavy obstacles to do so. This is the future.

White label card issuing is an exciting part of banking as a service, that allows other organisations to enhance their product offer to customers by upgrading their product range. A simplified white label solution allows companies to offer branded cards for clients, customers and employees. So, Company A develops a white label product, which is sold and rebranded under Company B which then embeds it into their product and offers it to their customers (the end-user, cardholder/account holder etc). One of the most appealing benefits of a white label service is the scalability. Businesses can scale their offering and revenue whilst reducing costs in a fast and secure manner.

So Banking as a Service is not white label?

White label is definitely a fundamental element of BaaS, but not the entirety. With so much technological development, banking as a service has grown to include payments, fund handling, and fundamentally enables greater transparency and better customer experience.

Businesses who partner with a BaaS provider, like Unlimit, can then embed the products and services into their own core offering. This would include opening accounts for customers, making and receiving payments, issuing cards, payment processing and beyond!

Why is it referred to as white label?

No prejudices here. The name literally derives from the physical image of a white label on the back of packaging that can be filled in with the company name who is using the product. Which in essence reflects the work behind the name – one company sells the product for another company to use as their own.

What does BaaS do?

In the financial world, digital transformation like BaaS platforms have become fundamental to open banking and replacing fiat financial services provided by banks. We’ve all been privy to the growth of financial technology, with neobanks, online banking and more – and traditional banks just cannot keep up with the consumer demand and fintechs.

The emergence of banking as a service is an opportunity to increase outreach at a lower cost by partnering with a fintech. Notably, banks are much slower and hindered by traditional processes which become timely for any non-bank business. And this is how BaaS poses as a threat. Not only is it challenging incumbent banks, but it’s catering to businesses and consumer needs in one fell swoop. Its popularity is enhanced by its ability to be seamlessly integrated into countless platforms and businesses. Trending industries which have turned to BaaS platforms include travel, retail, health and insurance.

The banking services facilitate non-financial businesses to distribute financial products under their own brand. For consumers this offers convenience, speed and the luxury experience of buying a product directly from a brand, even though the financial element is provided by a financial service provider like Unlimit BaaS.

Banking services like white label and BaaS are revolutionising the banking industry and are only expected to grow further with new developments which allow individuals, companies and even other fintechs to manage their finances efficiently. Thinking broadly the chain effect will in effect democratise finance for everyone, and not just the companies partnering with fintechs.

So, Who’s Unlimit BaaS?

Unlimit BaaS is a Banking as a Service API platform that’s designed to bring the financial world of tomorrow closer to your business. Unlimit’s experience has drawn on the power of banks and speed of technology to cultivate the Unlimit Banking and Cards service, solving inaccessibility and lack of financial agility for businesses. By leveraging our technology, your business can access tools and services that can provide you with greater flexibility and efficiency. The product is stackable, scalable and tech-ready to support rapid digital transformation.

Your business can attract customers from diverse environments with Unlimit BaaS’ fully customisable solution. Key features which will transcend your business include:

  • Quickly and securely create a multi-currency account
  • Launch co-branded physical or virtual cards
  • Principal member of MasterCard, Visa and China Union Pay.
  • Make payments all over the world
  • Digital wallet payments with Apple Pay and Google Pay
  • Fraud monitoring and risk management

Banking-as-a-Service and customer experience

Customer demands rapidly evolve, and this is linked to the fact that we live in an ever-increasing online world, which has driven the need for instant gratification. Forrester showed that customers are 2.4 times more likely to remain with a brand when their problems are resolved quickly. From faster payments and more unique promotions to faster delivery options – the consumers have made their wants and needs known to brands everywhere. And so, BaaS is notorious for its abilities to enhance a business’ product offering by integrating scalable and flexible financial products (like white label card issuing and multicurrency IBAN accounts)  that offer speed, efficiency and security. Fundamentally, BaaS has been disrupting banking experiences by making financial services more accessible to non-banking providers. Successful implementation has been seen to not only increase retention and brand loyalty from existing customers, but draw in new clientele, thanks to its simplified digital interface.

What do customers want, that BaaS offers?

Often customers don’t even realise that they are using BaaS innovations, and fundamentally they don’t want or need to know as long as they are having the most optimal customer experience. Brands that recognise the financial importance of a customers’ journey are more likely to reap the rewards as we see 52% of customers asking for more payment methods.

The great benefit of a banking-as-a-service product is it gives businesses the autonomy to enhance customer experience with personalisation that gives customers a sense of belonging and value. One of the greatest elements of BaaS is its personalisation – businesses can build a financial solution from the fintech provider’s product stack. Through this, brands are able to bring their customers a step closer to the personality and vision of their brand, creating a sense of community.

BaaS products such as IBAN accounts are an innovation targeted to bring the capabilities of banking solutions to merchants and customers, without the hassles from traditional banks. In efforts to minimise abandonment, businesses are able to quickly and easily open and manage accounts with instantaneous verifications. The product not only encourages brand loyalty but also reaches out to areas of the market which are underserved by banks and struggle with financial inclusion. For customers who are underbanked or unbanked, businesses create opportunity by offering them a multicurrency account which gives them autonomy over their finances.

So how can BaaS help you improve customer experience?

Businesses have been turning to banking alternatives for a one-stop solution that will drive customer experience seamlessly, and at the same speed of which customer demands evolve. Products such as white label cards are a great way to drive financial efficiency for businesses, and also offer customers an element of the brand identity as a sense of inclusion. Additionally in our rapidly evolving world where the digital payments sector is growing by 15% year-on-year, the ability to rapidly issue white labelled cards facilitates a digital-first payment experience for customers. Branded cards are available both physically and virtually, bringing greater convenience for users who strive for convenience with digital wallets.

For any business, there are numerous benefits of partnering with a BaaS provider to improve business functionality and improve customer experience, such as:

  • Flexibility of design and offerings with the card issuing solution
  • Increased security through multiple levels of authentication by using 3DS protocols
  • Risk management and monitoring the movement of funds through one, simple API
  • Instant and easy access to  multicurrency IBAN accounts for customers
  • Global scalability with technology and industry expertise needed to handle increased demand without disruption

How does Unlimit BaaS offer a quick route to market?

For businesses looking to enter international markets, our banking-as-a-service solution is designed to meet the needs of any business. Bringing the banking innovations of tomorrow to you today, you can:

  1. Leverage our licenses to launch your financial solutions quickly
  2. Avoid bureaucratic issues with our regulatory compliant API solution
  3. Remove cost and inconvenience of multiple providers with our one-stop solution for all of your banking needs
  4. Accept and make payments to/from a global customer base through Unlimit’s 1000+ alternative payment methods
  5. Stay ahead of competition by building new services designed to your business, at a global scale with our modular API-driven architecture.

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