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In recent years, various sectors such as travel, retail, and SaaS have been steadily expanding into the financial services space. This convergence has sparked a transformation in how financial products are delivered to end users.
The collaboration between banks and fintech companies is still relatively new in India. But the post-pandemic digital shift has accelerated this trend, pushing the financial ecosystem toward a more tech-first approach. From physically visiting a bank branch to opening an account online within minutes, the shift is undeniable—and we’re only at the beginning.
New-age fintechs continue to challenge traditional banking norms, encouraging innovation and creating smarter, faster, and more customer-centric financial solutions.
Banking-as-a-Service (BaaS) enables fintech companies and third-party providers to connect with banks through Application Programming Interfaces (APIs). Through BaaS platforms, services such as account opening, fixed deposits, and even lending can be integrated directly into a business’s customer experience.
However, delivering these services is not as simple as it sounds. It involves multiple regulatory layers. For instance:
Issuing prepaid cards requires a PPI (Prepaid Payment Instruments) license.
Offering credit requires an NBFC (Non-Banking Financial Company) license.
Banks already possess the necessary regulatory licenses to offer financial services. Through BaaS, they expose their core banking infrastructure via APIs to licensed providers. These BaaS platforms pay banks to access their systems and, in turn, allow businesses to embed financial services into their offerings.
Typically, the BaaS model starts when fintechs, third-party providers, or even traditional businesses pay a fee to access a BaaS platform. The platform, in collaboration with the banks, provides secure access to backend banking systems. This paves the way for white-labelled banking services and the creation of innovative financial products tailored to customer needs.
The contrast between traditional and modern banking is stark. What once took days—like opening an account—can now be done in minutes. Sending money internationally no longer requires navigating complex bank processes, thanks to fintech companies operating within the regulatory framework to enable seamless transactions.
Rewiring an entire banking system, both at the backend and frontend, is capital-intensive and complex. That’s where BaaS providers come in. They serve as the technological bridge, allowing banks to adopt modern solutions without overhauling their infrastructure.
The financial ecosystem is evolving rapidly, with banks, fintechs, and businesses continuously encountering new demands and customer expectations. Reaching untapped segments and solving niche problems has become a new revenue opportunity.
Collaboration between banks and technology providers is not just an option—it’s a necessity. APIs and responsible application development are critical to ensure scalability, compliance, and long-term efficiency in this dynamic environment.
As the financial services landscape embraces API-led transformation, the right infrastructure partner becomes essential. CARD91 empowers banks, NBFCs, and fintechs to simplify complex integrations, accelerate go-to-market timelines, and deliver seamless embedded finance experiences. With our robust BaaS infrastructure, regulatory expertise, and scalable architecture, we help you build the future of banking—today.
To know more about our offerings connect with our experts
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