This article explores, why it would be best for FinTechs and established banks to collaborate and produce truly remarkable products and services. 


We briefly explored the ongoing tug of war between the traditional banks and FinTech companies for control of the financial services industry. Despite the vast differences in methodologies, capabilities, business styles and maturity between these two camps, the conclusion that we drew was that it would be best for them to collaborate together and produce truly remarkable products and services.

BaaS - what’s in it for the consumer?

Innovative Products will be the norm in times of Banking as a Service (BaaS)The end goal of all business activity is to offer value to the consumer. Here, we look at how Banking as a Service (BaaS), made possible by technical and business cooperation between banks and FinTech companies, can offer more value to the consumer.

Innovative products

Although most people still don’t use peer to peer lending or crowdfunding as a source of financing, it is the fastest growing credit segment. Whether you like the concept or not, it is with a doubt innovative and has the potential for explosive growth, if nurtured correctly. 

Service orientation 

FinTech startups succeed, not because they necessarily do something new, but because they offer an existing service in a much better way. They are driven by customer centricity as their driving force, because that is the only way they can penetrate the market.

If you look at some of the latest banking/ finance/ investment related apps on your phone – you’d realize that they don’t always do something which is entirely new, they just allow you do it in a much easier way.


You can buy subscriptions and configure your service package when you use software. With Baas, something similar would be possible in banking. You buy the front end, which is basically an app which shows you the information on your screen. Then on that app, you can search for and select a checking account provider and purchase an account. Then you search for an insurance provider and buy the plan you like.

All your documentation would be uploaded just once on that app and from there you can buy basically any financial product and see all your accounts in one place.

An app-store full of goodies

PSD2-unchains-the-FinTech-Market.pngWith banks adopting Banking as a Service and opening up their systems to open APIs, developers can create potentially thousands of apps which can offer services or fulfil customer needs that we don’t even know exist yet.

Many such apps already exist but the market has not been unshackled yet and that is exactly what PSD2 (link to article) aims to achieve in Europe.

Gamification has also become a popular strategy to encourage people to do otherwise tedious things in a more fun and rewarding way.

Banking for Businesses

Companies of all sizes generally have to devote entire departments to the finance function. They also struggle to integrate and manage a number of disparate platforms for things like vendor management, accounting, reporting, payment processing, billing, payroll management, CRM, inventory management and so on.

Many banks have dedicated solution delivery teams which exist only to ensure effective communication between the bank’s transaction or trade processing systems and their customer’s various ERP systems. These solutions are custom built and can take weeks if not months to implement for larger clients. With Banking as a Service, plug and play solution could be developed and deployed in a matter of hours.

Sky is the limit!

These are just some of the ways in which Banking as a Service can affect the lives of consumers. If you look at the software industry and what it achieved through the SaaS revolution, you can get a glimpse of what is possible for Banking as well. Perhaps the day is not far when an app integrates Siri with your bank account.

Then all you have to do is press the button and say, “Siri, transfer a hundred dollars to Tanya” and the system will authenticate based on your voice and fingerprint pattern and complete the transfer. Just like that!

How to market FinTechs


  • Read more articles on FinTechs in VentureSkies' blog section.
  • Read more on the services and packaged solutions which VentureSkies offers for FinTechs.
  • PSD2 Directive - DIRECTIVE (EU) 2015/2366 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (2015), The European Parliament and the Council of the European Union.
  • DIRECTIVE 2007/64/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC (2007), The European Parliament and the Council of the European Union.

 Photo: "Money", Courtesy of 401(K) 2012, Flickr, (CC BY 2.0)


Topics: FinTech