Why It Pays to Be an Early Adopter of Banking-as-a-Service Solutions

Interview with PaymentEye and Christoph Tutsch, CEO at ONPEX, on: Banking-as-a-Service. 

The implementation of PSD2 has seen Open Banking  gain significant traction. It has allowed third-party service providers to offer banking and payment services that were once dominated by traditional banks.

Banking-as-a-Service (BaaS) is among the key innovations to have evolved out of Open Banking. Giving access to transparent and automated Application-Programming-Interface (API) based solutions, BaaS empowers third-party service providers to better manage payment flows, and banking services, while creating leaner cost structures for international payments.

With global competitive pressures rising, and profit margins shrinking, early adopters of BaaS are set to gain a promising number of business benefits in the short and long term.

A Flexible Plug-in Solution for All

The API driven, ‘plug-in’ nature of BaaS means that organisations can benefit from a range of services that are adapted specifically for their customers’ needs via easy API integration of respective features of third-party service providers. This reduces the need for organisations to invest in their own technology and screening mechanisms.

As well as offering a simple plug-in solution, ONPEX’s BaaS platform offers a number of services which both regulated and non-regulated businesses can use to maximise customer satisfaction and business growth.

For example, payment institutions can collect, settle and manage their payments and banking transactions, while banks can automate payments in a PSD2 compliant environment. BaaS platforms can be plugged directly into legacy core banking systems, allowing banks and their customers easy access to innovative API-based technology.

Non-regulated institutions benefit in similar ways. As a business, we’ve experienced great success when helping online marketplaces receive, split, reconcile and settle payments. The same can be said for resellers, who are now able to create their own financial services with our white-label payment and banking products.

Reacting to Regulation in an Instant

The flexibility of BaaS – driven by API technology – not only gives third-party service providers the opportunity to access banking and payments services that were previously out of their reach, it also allows them the peace of mind that their operations are compliant.

For example, compliance is built into our BaaS platform, allowing ONPEX customers to meet all requirements of the latest regulations, including; PSD2, GDPR, and AML4. BaaS supports customers in taking a more strategic approach to their core business, while equipping them with the technology they need to access highly-regulated markets.

What Does the Future Hold for BaaS?

The future looks exciting for BaaS. The banking industry is still undergoing a transformation to open banking. BaaS platforms will make banking and ePayments interoperable, by providing bank accounts alongside multiple clearing systems and a whole array of different payment methods, all in one platform.

Currently, ONPEX services offered via our BaaS solution include: multi-currency IBAN accounts, European SEPA and cross-border SWIFT transfers, FX, and many more banking and payment service features. We also allow Acquiring for card payments and alternative payment methods. With more and more institutions using the ONPEX’s BaaS solution we see an increasing demand for the handling of crypto currencies and blockchain technologies that we will make seamlessly available to our clients in the near future.

Our BaaS platform is value, asset and transfer method agnostic. It reduces time and cost for companies while making payments and banking simpler. Our ONPEX team is constantly implementing innovative technologies to stay at the forefront of the industry.

To read more about Christoph’s thoughts on the role of Open Banking and the future of BaaS, read his recent interview with PaymentEye here.

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Notes to Editor
About Christoph Tusch

Christoph is the founder and CEO of ONPEX. He started the company in 2013 with the goal to provide businesses with an ideal solution for online payments and digital transactions. An accomplished payments expert, he saw the need for a solution to manage all financial processes in one single platform. Christoph oversees the strategic positioning of ONPEX and the development of its solutions.

About ONPEX

ONPEX helps businesses build their own financial services. We provide multi-currency IBAN accounts, FX, local and global transfers, and ePayments powered by open APIs to create simple, compliant, and cost-efficient payment and banking solutions.