Banking-as-a-service is key to meeting corporate payment demands
More financial institutions are moving into the banking-as-a-service market to tap into demand from corporates looking to offer multiple payment options and enhance customer loyalty.
Institutions as diverse as US-based banking platform Jiko, BBVA, and Australia’s RailsPay have announced plans to offer banking-as-a-service (BaaS) platforms. They were joined in mid-October by HSBC, which announced that it would launch a BaaS offering in partnership with Oracle NetSuite to provide international payments and expense management services.
A recent assessment of the likely development of the BaaS platform market published by Future Market Insights last month suggested that it would be worth in excess of $12.2 billion by the end of 2031. The firm suggests that increased adoption of digital banking services had led to a surge in demand for BaaS platforms.
HSBC’s new service will allow companies to automate accounts payable, accounts receivable and reconciliation processes. The bank says it intends to broaden its BaaS offering with more solutions, including its multi-currency digital wallet.
Our objective is to become the financial marketplace to the goods and services marketplace of our clients
SuiteBanking is due to go live in the first half of 2022 to tap into demand from corporates looking to create new revenue and increase the value they deliver to their customers.