FinTech, short for 'financial technology', is not a new concept on its own, and something many of us have been leveraging for years. It is essentially the concept of using technology to deliver financial services in a faster, more efficient way causing a disruption to traditional banking methods and financial services.

As more companies adopt fintech solutions, the need for Fintech as a Service (FaaS) also grows in demand.

What is Fintech as a Service (FaaS)? 

FaaS is essentially a pre-packaged service that enables third-party providers (like a managed IT company), to develop fintech solutions such as payment processing, digital wallets, etc. These solutions are offered through APIs (Application Programming Interfaces), which act as messengers allowing companies to easily integrate FaaS features into their existing platforms. Companies in all industries - not just those limited to finance - can leverage FaaS to provide financial services to their customers without dealing with the complexity of building everything themselves.

FaaS is growing in demand and here's why:

FinTech support is essential for an inclusive, efficient, and technologically advanced financial ecosystem. Its impact extends beyond banking, influencing insurance, investment, and payment systems worldwide. However, navigating this environment can be an arduous task that many companies simply don't have the time and resources for.

Here are some key benefits to adopting FaaS to empower your business:

1) Cost-Effectiveness

Companies don't need to invest heavily in building and maintaining their own financial infrastructure. Instead of building and maintaining their own complex financial infrastructure, businesses can leverage pre-built FaaS solutions. This translates to significant savings in development, IT costs, and ongoing maintenance. ompanies don't need to invest heavily in building and maintaining their own financial infrastructure.

2) Faster Innovation

Integrating FaaS features through APIs allows businesses to quickly add new financial functionalities to their offerings. This agility helps them keep pace with the evolving market and customer demands.

3) Improved User Experience

By incorporating FaaS, businesses can provide a seamless and user-friendly financial experience for their customers. Imagine offering features like mobile payments or integrated budgeting tools directly within your platform.

4) Competitive Advantage

In today's competitive landscape, FaaS allows businesses to differentiate themselves by offering innovative financial services. This can attract new customers, boost brand loyalty and give businesses more of a competitive edge.

5) Focus on Core Business

By outsourcing financial functions to FaaS providers, businesses can free up their resources and personnel to focus on their core competencies. This allows them to streamline operations and improve overall efficiency.
 

Overall, FaaS is a win-win for both businesses and consumers. It allows businesses to offer a wider range of financial services without a huge investment, and it gives consumers more convenient and innovative ways to manage their money. Sentia's FinTech experts can help assess, design, implement or operationalize your financial services solution best suited to your customers, regulators and organization’s requirements. Contact us today to get started.