New research from Aite-Novarica Group, commissioned by ClearBank, reveals the growing pains of BaaS and how fintechs are embracing Embedded Banking
ClearBank report reveals that fintechs are increasingly reliant on their BaaS providers to speed time to market, boost revenues, and meet compliance demands, however, BaaS providers are struggling to keep up. This is resulting in lost revenues, rising costs, and intervention from the regulator, as fintechs start to churn towards Embedded Banking providers.
The research, conducted by Aite-Novarica Group, includes the following key insights:
. BaaS today is a ubiquitous tool utilised by 82% of fintechs, with BaaS-related services representing, on average, 45% of a fintech’s overall revenue stream
. 47% of fintechs experienced product delays which resulted in an average of $10,900,000 in missed revenue annually due to poor BaaS performance
. 40% of fintechs saw services go down, 33% have lost customers, and 20% have faced intervention by the regulator due to BaaS issues
. In order to address these issues, 25% of fintechs are interested in moving from a BaaS to Embedded Banking provider
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
