The rise of Banking-Platform-as-a-Service marks a paradigm shift with broad implications for the future of financial technology. It challenges the idea that banks and fintech firms operate in entirely separate spheres.
an article written by James Barker – CEO and owner of HIVE
Not long ago, banks were considered the antithesis of innovation, held back by legacy systems and a conservative approach to change. But the neobank revolution challenged that, sparking rapid technological evolution across the industry and recasting financial services business as potential innovators. Now, we’re witnessing a significant shift: banks not only using technology to streamline their own operations but also entering the technology market as suppliers themselves.
Leading this trend are initiatives like Monument Technology, Engine by Starling, and Audax by Standard Chartered in Asia. These “Banking-Platform-as-a-Service” providers are a relatively new phenomenon, yet they are already generating significant market interest. Having served as interim Chief Commercial Officer (CCO) at Monument Technology, I observed firsthand how strong the demand is for tech solutions developed by banks, for banks. Conversations with executives at other leading firms, such as Audax and Starling, echo my personal experience: the appetite for this new category of banking technology is substantial.
The Draw of Banking Technology from Other Banks
What, exactly, is driving this demand? Conversations with potential clients reveal two main reasons.
Firstly, while financial services technology has splintered into smaller and highly specialized solutions, integration complexities remain daunting. For many smaller financial institutions, the talent pool and resources needed to construct a comprehensive, next-generation platform are simply out of reach. In fact, the financial barrier alone is substantial, with a base investment requirement around £20 million—an unfeasible cost for smaller firms.
Secondly, even institutions that possess the necessary capital and technological know-how are wary. Traditionally, tech vendors and system implementers can sometimes find themselves at odds when a project becomes challenging, each tending to point fingers at the other. In these situations, the client ends up stuck in the middle, juggling separate relationships and simply wanting to achieve the outcome they envisioned. A cohesive approach—where one party owns the entire solution—has been notably absent from the landscape until now. Banking-Platform-as-a-Service, by offering integrated, outcome-based solutions, appears to address these challenges.
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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:
