Unleashing Financial Imagination with BaaS

Future of Finance: Deconstruct and Reconstruct Banking for Customers

Yunjoo Kim Yungho Park Mira Park Yijung Hong Hyemin Lee Hongmin Park

The modern financial industry is being significantly affected by rapid digitalization and technology innovation. As a result, the paradigm of financial services is quickly changing. With the widespread adoption of cloud services known as “Software as a Service (SaaS),” a new concept called “Banking as a Service (BaaS)” has emerged, helping to innovate the approach of traditional banks and financial institutions. It provides more open services by creating synergies between financial and various non-financial companies based on cloud and open API.

The essence of BaaS is to make financial services more accessible and easier to scale across different industries. This allows non-financial companies to seamlessly integrate financial functions to their products and services, thereby providing a better financial experience for customers. While close collaboration among financial, non-financial, and fintech companies is essential for a successful BaaS business, collaboration between fundamentally different stakeholders is proving to be quite challenging when simply defining the goals of such an alliance is unclear.

In the following report, we share insights on how BaaS will drive financial innovation and the development of the digital economy, as well as the actions each stakeholder should take to leap into the financial solutions market and overcome barriers to innovation.