Banking has changed irrevocably. Over the past 20 years, banking transactions, half of which used to occur in-branch, have migrated predominantly to digital self-service channels. As we go along in this decade, many of these transactions will move out of the bank network altogether, into the realms of third-party applications. This is possible due to the growing might of APIs and open banking, leading to the emergence of newer business models such as banking as a service (BaaS) and embedded finance.
While this gives non-banks and third parties a chance to venture into the banking world without much friction, banks today have an equally unique opportunity to reinvent themselves by embracing new business models. For this, banks need to mature their API ecosystems and partner with fintechs and brands evolve innovative and contextual banking products and services.
India has been a leading example worldwide, for the adoption of these newer banking business models.
This report explores the emergence of API banking and dives deep into its role in enabling BaaS and embedded finance innovations. It covers several BaaS models and sub-types, highlighting the key initiatives in the Indian market which are fuelling the growth of BaaS and embedded finance options.
Finacle API Connect is an all-inclusive API solution for financial institutions to jumpstart and accelerate their ecosystem innovation. Our API Connect suite help banks launch and accelerate their banking-as-a-service propositions to unlock embedded finance opportunities at scale. Today, banks in over 100 countries rely on Finacle to serve more than a billion people and millions of businesses.
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