Banking is moving from a traditional linear production-based value chain towards an open ecosystem of financial products that are contextually embedded right at the point of interaction. This development is driven by new technologies (cloud, microservices, APIs), new banking distribution models (B2B2X, apps, developer platforms), regulatory developments (open banking, PSD2), as well as a new customer-centric paradigm: Traditional banks sold the same product over and over again to very different type of customers; now companies sell different kind of tailored products to the same type of customers.
The result: Financial products and capabilities are increasingly delivered under as-a-Service models (on-demand, over the cloud), thus lowering the barrier to entry into banking, enabling virtually any brand to integrate banking services in a plug and play fashion via application programming interfaces (APIs).
In this episode, Mateusz, Lars and Adrian dive deeper into the topic and clarify the key definitions and delivery models behind open banking, Banking-as-a-Service as well as embedded finance.
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