The world of financial services is changing – for the better. A multitude of virtual banking and payment options, cardless and accountless services, and now, Banking as a Service (BaaS) are making financial inclusion the norm instead of a privilege, says Anton Coertzen, CCO of leading fintech enablement partner Ukheshe

 

BaaS is the latest technology making waves in the financial services world and Gartner predicts it will hit mainstream adoption within two years. BaaS is one of four technologies that Gartner says have the potential for high levels of transformation in the banking sector – the others being chatbots, public cloud for banking and social messaging payments apps.

 

A Deloitte report also says BaaS is becoming ubiquitous. “It’s reconfiguring the banking value chain, opening the door to disintermediation, and enabling new sources of growth,” it notes.

 

How does BaaS work?

BaaS came about because the ability to offer banking services such as cards and loans as a non-bank enterprise improves the customer experience and boosts revenue. However, offering banking services requires a banking licence that is difficult to obtain – it also requires significant capital and compliance with strict regulations.

 

BaaS allows licenced banks to integrate their services directly into the products of non-bank businesses. This means any business can offer its customers digital banking services such as mobile bank accounts, debit cards, loans, and payment services, without needing to acquire a banking licence. The non-financial business can also distribute these financial products under its own brand.

 

All of this happens through third-party distributors. These distributors build tech that allows digital banks, fintechs, and other third parties to connect directly with a bank’s systems via APIs.

 

In a nutshell, it enables embedded finance: banks integrate fintech or other FSP products into the banking journey (BaaS), while non-financial companies embed banking products into their own services (embedded finance).

 

The benefits of BaaS

BaaS is reconfiguring the banking value chain by enabling third-party distributors to offer banking products and services. It’s opening the door to disintermediation and enabling new sources of growth for all parties – whether the bank, the fintech enabler, or the third party.

 

Ukheshe offers banks and other financial institutions a cloud-based API-first BaaS platform that can be white-labelled – essentially allowing the bank’s customers to offer embedded finance offerings to their own customers, under their own brand. Examples include wallet as a service, card as a service, KYC as a service, and more.

 

Here are just some of the benefits of Eclipse within BaaS:

 

For banks:

  • Increased sources of revenue: Banks BaaS with Eclipse offers increased sources of revenues for their customers. Not only are banks able to enhance their value proposition to their existing consumer and merchant base, but they could also pivot to be the bank of choice for other Fintechs and Telcos in the market.
  • Cost savings: Banks can leverage third-party technology and infrastructure. Eclipse provides a dedicated environment with a frontend that is specific to banking institutions’ specific needs.
  • Increased customer insights: more customers mean increased insight into customer preferences and experiences. Eclipse provides exactly that – BaaS that has the customer at the heart of every solution, with less hassle, all through a single platform.

 

For non-banks and fintechs:

  • Less red tape: BaaS allows fintechs and businesses to bypass banking licence regulation by integrating directly with a bank’s system through banking APIs.
  • Increased customer trust: businesses can leverage consumers’ trust in banks to increase their customer base.
  • Higher competition: BaaS enables competition in financial services by enabling non-banks to offer core banking services. This means that more players can enter the market, innovation gets a push, customers get access to new products, and it leads to greater financial transparency.

 

The future

BaaS will become to fintech what Amazon Web Services is to data centres – a game changer; an absolute essential.

 

Through its multi-functional platform, Eclipse, Ukheshe has long been ahead of the fintech curve by offering both BaaS and embedded finance – even though it falls under the Software as a Service (SaaS) category.

 

Our strategy has always been to partner with banks, telcos and fintechs to shape their digital payment offering to their customers. It is core to our services to help shape their BaaS solution. We, in effect, enable the enablers and increase financial solutions to banking customers.

Leave a Comment

Your email address will not be published.

You may also like

Business Culture Economy Investments News

SnackFix from Bühler adds value to local grains in Nigeria and boosts Food Security

post-image

The SnackFix small-scale cereal bar production system from Swiss technology group Bühler (https://www.BuhlerGroup.com/) is the ideal solution for small and medium enterprises (SMEs) to add value to locally produced grains in Nigeria and assist the country to address food security, says Manuel Murrenhoff, Managing Director, Bühler Nigeria.

VIDEO
Bühler SnackFix Bar Production

 

On-the-go snacking consumption in Nigeria is rising steadily, presenting opportunities for SMEs to enter the market. “In terms of bars, fruit, and sweet snacks alone, this market segment is expected to exceed half a million tonnes by 2025,” says Murrenhoff. The main driver is the burgeoning population, estimated at 223.8 million in 2023, a 2.41% increase over 2022, and expected to grow to 377 million by 2050.

“The economically active part of…

Read More
Business Opinion

Why Macbook, Dell Latitude and Lenovo Are Top Choices Laptop For Serious Business Minded CEO!

post-image

 

Often, people, especially those who want to join our Tech Community do ask me the best laptop to buy. When it comes to laptops, especially business laptops, there are several models that are widely regarded as top choices due to their performance, reliability, and business-focused features. And the factors below are to be considered before you purchase one:

1. CPU: There are two big players in this area – Intel and AMD. Intel’s core processors include Corei3, Corei5, Corei7, Corei9 & n-generation (evo, vPro), while AMD’s Ryzen processors are Ryzen3, Ryzen5, Ryzen7, Ryzen9 and the Ryzen Threadripper. Corei5 & Ryzen5 upwards should do your work.

2. RAM: 8-16 GB RAM should do any kind of work thrown at it.

3. Storage: Hard disk drives (HDD) or Solid-state drives (SSD)? HDD has a larger capacity, slower, cheaper, and easy to crash, while solid-state drives (SSD) are faster, last longer, smaller, and expensive.

4. Display:…

Read More
Business Economy

African nations feature prominently in global top 100 for online threats

post-image

Nigeria, currently ranked 50th worldwide for online threats, South Africa at 82nd, and Kenya at 35th, have increasingly become focal points for cyber threats, as per the latest data from the Kaspersky Security Network (KSN). Kaspersky (www.Kaspersky.co.za) presented on the reality of cyber threats in Africa at the recent inaugural GITEX Africa conference, held in Morocco.

 

Dr Amin Hasbini, Head of the Global Research & Analysis Team (GReAT) for META at Kaspersky, expanded on several cyberthreat trends, cautioning business and technology leaders about two primary forms of cyberattacks – criminal and advanced.

“Criminal attacks are mainly driven by the pursuit of financial profit, whereas advanced attacks indicate how cyber threat actors continually adapt their tactics and tools to breach security measures. A significant portion of the attacks witnessed across Africa are shaped by the rapidly changing geopolitical landscape. However, a growing concern is that cybercriminals are learning from…

Read More
Business Economy News Security Society

Safeguarding Nigerian Businesses: The Crucial Role of ZORACOM NSOC Centre in Cybersecurity

post-image

 

 

Breaches are one thing that any modern company must be wary of and invest to protect. As we are getting more exposed in the virtual world, the 21st century company is digitally savvy and the need to be online is critical, protecting these online credentials and assets becomes imminent and imperative. Zoracom, an indigenous IT firm located in the upscale are of Lagos has one of the best facilities in the sub- Saharan Africa to protect your assets against any breach of any kind. Known as NSOC Centre (Network Security Operations Centre), this facility has been described as one of a kind in ECOWAS region.

The ZORACOM NSOC Centre holds significant importance for Nigerian businesses in the realm of cybersecurity and safeguarding their digital infrastructure. In today’s interconnected world, where businesses heavily rely on technology and data, the need for robust cybersecurity measures is paramount. The ZORACOM NSOC Centre plays…

Read More
Business Economy Finance Fintech

Yellow Card and Tether Join Forces to Drive Stablecoin Education and Adoption Among the African Youth

post-image

Yellow Card (https://YellowCard.io/), a leading pan-African fintech and cryptocurrency exchange, and Tether, the world’s largest stablecoin provider, are pleased to announce the successful completion of Phase 1 of their strategic collaboration across three key African markets. The two-month collaboration focused on raising awareness, providing education and driving adoption of USD₮, Tether’s stablecoin, among students and young professionals in Nigeria, Kenya and Ghana.

 

 

Activities included Financial Literacy Tours in universities and a canvassing campaign which involved Yellow Cards Brand Ambassadors engaging with individuals across major cities in the three countries.

 

Over 10,000 young people were reached – including students drawn from the six universities where the Financial Literacy Tour events were held among them University of Nairobi in Kenya, University of Benin in Nigeria and Kwame Nkrumah University of Science and Technology in Ghana. Those who attended the events received insights into the mechanics of stablecoins, gained a…

Read More
Announcements Business Economy News Society Trends

MENXTT TECHNOLOGIES NG Unveils Cost-Effective Solutions for Small and Medium Enterprises (SMEs) in Nigeria, Empowering Strong Online Presence

post-image

 

 

 

MENXTT TECHNOLOGIES NG, a digital solution/technology provider, is proud to announce its suite of cost-effective solutions tailored specifically for small and medium enterprises (SMEs) in Nigeria. Recognizing the paramount importance of a strong virtual and online presence for businesses in today’s digital age, MENXTT TECHNOLOGIES NG aims to empower SMEs with the tools and expertise required to thrive in the digital landscape.

In a world where digital content, social media management, content development, website hosting, and building play an instrumental role in the success of any brand, SMEs often struggle to navigate these intricate domains due to limited resources and technical know-how. MENXTT TECHNOLOGIES NG has positioned itself as a strategic partner for SMEs, bridging the gap by offering comprehensive and affordable solutions.

With its team of highly skilled professionals and cutting-edge technology, MENXTT TECHNOLOGIES NG specializes in delivering digital content services that engage target audiences, generate leads, and drive conversions….

Read More
Business Economy Opinion Security Society

True cyber resilience is a business enabler

post-image

Cyber resilience is about much more than just cybersecurity. It’s about preventing operational disruptions of all kinds, that may impact your profitability, productivity, and reputation, says Patrick Evans, CEO of SLVA Cybersecurity.

South Africans are renowned for their resilience when facing a multitude of problems – from the high cost of living to rolling blackouts. However, the resilience of the average South African citizen is not always matched by the resilience of the businesses they run.

Your business – small or an enterprise – needs to be able to deal with things like power disruptions, unpredictable weather or civil disobedience, and for these you have plans and contingencies ready and are designed to cater for such disruptions. So when organisations are ‘secure by design’, they are more than just cyber secure, they are cyber resilient.

The problem…

Read More
Art Business Culture Economy Health Leisure Opinion

Public Outcry Ensues: Hilda Baci’s Dog-Eating Stunt Draws Widespread Criticism

post-image

 

 

By Chukwudi Iwuchukwu

 

In a shocking turn of events, Hilda Baci and her friend Eniola have sparked controversy after posting a video on Friday morning showing them consuming a dog delicacy. The video quickly gained attention on Twitter, leaving many viewers distressed and choosing to scroll past it.

 

The outrage and anger sparked by this stunt were immediate, as numerous people found the video highly offensive. The close resemblance of dogs’ behavior to humans, coupled with their status as loyal companions, led many to express their disapproval. Concerns are now rising about the potential repercussions this incident may have on Hilda Baci’s brand.

 

It is possible that this dog-eating video could harm her reputation and impact future opportunities. Foreign embassies may refuse her a visa, and she may encounter difficulties in securing positions with foreign food companies. Animal cruelty is a significant concern globally, and making light of such issues can have…

Read More