The CCG Insights report dives into the evolving banking landscape, emphasizing the shift from traditional models to multifaceted distribution.
CHARLOTTE, NC, October 4th — Infinant, an embedded finance platform provider, announces today that it has sponsored a CCG Insights report. The report analyzes how banking-as-a-service (BaaS) is revolutionizing how financial products and services are delivered. CCG Insights, part of CCG Catalyst Consulting, specializes in banking and fintech, and brings a valuable perspective from the bankers viewpoint.
Last-mile delivery—the customer experience of the banking ecosystem— has quickly evolved with consumers and businesses having an array of engagement options that are often more tailored to their needs than traditional banking apps. As fintech and brand apps expanded, banks found early success outsourcing their charter to BaaS providers but have now been in the regulatory spotlight for the outsourcing approach.
Specifically, insufficient compliance oversight of their BaaS programs has led regulatory scrutiny to intensify, and over the last year, several sponsor banks have needed to graduate their strategy to a bank-controlled platform strategy.
Consequently, there has been a shift away from arrangements that obscure the bank-fintech relationship. Instead, banks are moving towards direct models that provide greater control, enabling banks to own their compliance and risk strategies while having direct relationships to fintech and brands to grow their programs at their desired pace.
The report “Reimagining the Last Mile in Banking” analyzes the BaaS evolution in three waves:
The development of the platform economy is ideal for banks as this evolution of BaaS means banks can capitalize on the recent digital transformation. This platform approach allows banks to distribute their product and service strengths across multiple distribution channels – securely connecting third-party apps and platforms that drive customers, deposits and loans.
“Embedded finance is quickly evolving, and it is a privilege to sponsor CCG’s research unraveling the benefits from the bank’s perspective,” states Chris Siemasko, Chief of Staff at Infinant, “We believe embedded finance represents a tremendous opportunity for banks to move to a platform economy and work directly with fintech and brands to accelerate their growth.”
By comprehending the evolution of BaaS, banks can grasp the significant growth in the global BaaS market, which is expected to have significant growth into 2030, and position their own institutions to participate in these channels.
To get your hands on a copy of the report, click here.
Charlotte, N.C.-based Infinant provides the flexible platform and launch-acceleration tools for banks to distribute financial products through non-financial institution providers, and distribute products and services from fintech through their bank channels. The interlace platform differentiates by giving banks choice in their selection of features, fintech and processors for complete ownership of their ecosystem, so they can succeed with their customers, fintech and brands. To learn more about staying above-the-core and marketplace banking, visit www.infinant.com.