Particularly as competition for consumer attention online heightened throughout the pandemic, an increasing number of brands have explored embedded banking products, like the issuance of cards, offering accounts and delivering built-in lending solutions; this allows for a seamless customer journey with the right financial products offered at the point of need.
Enabling these solutions in the background are BaaS providers that offer cost-efficient, API-based solutions alongside the necessary licence and regulatory expertise. However, not all BaaS providers are created equal; our latest research uncovered some of the sticking points that businesses face when weighing up different BaaS providers, including compliance and security (27%), concerns about partnering with an unknown fintech providers (28%) and a lack of understanding about the products at their disposal (29%).
To understand more about what BaaS adopters want, Vodeno’s study went further, seeking to determine the specific improvements that firms would like to see from the way providers deliver their services.
- Faster implementation: For the largest proportion of respondents (35%), rapid implementation and a swift time to market stood out as a priority, ensuring that they can stay ahead of the competition and see a tangible return on investment early on in the process.
- Cheaper cost of services: 31% of the BaaS adopters surveyed said that they would like to see their provider moving to provide more cost-effective services, while 20% of businesses not using BaaS cited cost as a key barrier to implementation.
- Access to a banking licence: According to 28% of respondents, access to a banking licence is a key factor when selecting a BaaS partner, as this can have a significant impact on the scope of products and markets that a business is able to enter. With this in mind, a further 58% of respondents said that BaaS providers that offer licensing alongside technology are the ones that will shape the market in the coming years.
- Access to liquidity: Alongside a banking licence, the BaaS provider’s access to liquidity for BaaS lending is a priority for 28% of the businesses surveyed.
- Better understanding of the customer journey: Virtually nothing is more important to brands than their ability to offer an excellent customer journey (CX), and 28% of respondents cited the need for BaaS providers to better understand their customer journey in order to create a truly frictionless experience.
Arrange a call with Vodeno today to learn more about how BaaS can unlock new opportunities for your business.