ᐉ Backend as a Service Use Cases How to Apply

Businessescan leverage that trust by integrating with banks to increase their customer base. A stakeholder is a party with an interest in an enterprise; stakeholders in a corporation include investors, employees, customers, and suppliers. Companies go through the process of becoming B corps for a variety of reasons and can gain a number of advantages from doing so. Achieve a score of at least 80 on B Lab’s Impact Assessment, which measures social and environmental performance, and pass its risk review. There are baseline standards that multinational corporations must also meet. To become a certified B corp, companies must apply to B Lab, providing documentation regarding their business practices.

Even better, most of the functionality you may need is already built in. For instance, you can have your authentication procedures and push notifications ready for use almost immediately. Although BaaS solutions do a great job of managing storage and network capacity, there can be some restrictions. For instance, as your product gains popularity and attracts more customers, you may find that the prices of your vendor’s plans increase exponentially. The BaaS architecture promises a ton of benefits, but should you completely rule out custom backend development? This was an actual project developed by the team at Acropolium.

Example #2: BaaS vs. Custom Coding Login Features

They can use this data to inform their marketing strategy and keeping up with their customers’ behaviour and needs. This gives them a competitive edge over other firms as they are able to respond faster and more effectively to the changes in the market. The provision of banking processes as a service using an existing licensed bank’s infrastructure with modern API-driven platforms. Azure, Google, and AWS are the biggest FaaS providers that concentrate on configurability.

In recent years, global banks have opted for the BaaP model since they “own” the customer relationship while providing better services. Some examples of banks that have already implemented this model include Legence Bank, Live Oak Bank, Wells Fargo, and others. We have prepared an article explaining how banking-as-a-service vs banking-as-a-platform vs open banking differ. Hopefully, you can learn more about each model and decide which one perfectly suits your business.

Increased Customer Trust

It’s more difficult to create a simplified digital experience for all depositors when there are so many banks, each with its own old technology. Consumers are more comfortable with mobile banking than they have ever been, and investors are loaded with cash and eager to invest in fintech businesses. As a result, in order to assure client happiness, banks must adopt the BaaS model.

• They will be able to serve more customers and cater to their tech-savvy needs.
• As open banking becomes the norm, BaaS offer new streams of revenue for banks.
• Most BaaS providers have a substantial quantity of servers under the hood, and scaling an application will be as easy as clicking a button.
• Therefore, solutions capable of preserving and safeguarding information are considered to be of high value and one of the best acquisitions for companies that depend on logical capital.
• They want to have embedded finance management in one complex solution.

Over the last two decades in the IT industry, I have overseen its unstoppable growth and learned some personal insights, which I am happy to share with you. If you browse through our portfolio, you’ll find that in the 17+ years on the market, we’ve built solutions for every major industry. From transportation, oil & gas, and construction, to healthcare, fintech, and HoReCa — Acropolium’s engineers have the skills and experience to tackle the most diverse and complex challenges. When a Minimum Viable Product needs to be released as soon as possible, BaaS is the way to go. Utilize its building blocks to save time on backend development and get your main functions in working order.

How Does Backup as a Service Work?

In Banking as a Service, an API connection to licensed banks and BaaS software platforms from third-party providers lets these brands offer their end customers embedded financial services. BaaS is based https://globalcloudteam.com/ on an API software connection between banks and non-banks, including FinTech companies. BaaS providers seamlessly embed financial services in the online interactions of brands and their customers.

This cashback can be assets with no expiration date that can be used to purchase any goods or service in stores, online, or apps for customer happiness. Railsbank, a London-based BaaS provider, serves the U.K., Europe, and the U.S. Railsbank developed proprietary infrastructure in-house that doesn’t run on top of legacy software stacks, unlike its competitors.

Backendless

You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. B corps are part of a growing movement toward greater social and environmental responsibility by businesses around the world. Their proponents maintain that paying attention to those concerns is also good business that pays off in other ways. And because they must recertify every three years, their focus on improving over time can lead to long-term resiliency. In addition, companies must apply for recertification every three years or when there has been a change in ownership or they have made an initial public offering . In collaboration with Green Dot bank, Uber issues debit cards for drivers and partners.

Ensure the house or a bike with a penny on a dollar, compared to traditional banking. Manage finances and even invest from the comfort of their own favorite armchair. It’s making old and sometimes inefficient services simple and affordable. Open banking directly hooks up the bank’s clients and third parties. Thus the client wants to use an app to track and control their spending habits. Open banking enables the third party to access customers’ financial data via APIs.

Standardize backend development

Barbara is currently a financial writer working with successful B2B businesses, including SaaS companies. She is a former CFO for fast-growing tech companies and has Deloitte audit experience. Barbara has an MBA banking as a service platform degree from The University of Texas and an active CPA license. When she’s not writing, Barbara likes to research public companies and play social games including Texas hold ‘em poker, bridge, and Mah Jongg.

As previously stated, obtaining a banking license implies significant capital requirements. Furthermore, not everyone has the resources necessary to maintain legacy systems and comply with regulatory laws. BaaS enables banks to share data with third-party financial institutions via APIs.

Banking Without Banks: How Banking as a Service Changes the Finance Industry

The speed to market and product innovation will suffer greatly as a result of this. Banking as a Service seamlessly provides essential services and financial products to customers, contributing substantially to economic growth. This Mexican Uber app from BBVA provides a Driver Partner debit card.