FIS Facilitates Embedded Finance with Launch of Banking-as-a-Service Hub

FIS (NYSE: FIS), a global leader in financial services technology, today announced the launch of its Banking-as-a-Service Hub(BaaS Hub), enabling banks, credit unions and fintech companies to build the digital banking and payments ecosystems they need to provide merchants and consumers with innovation. The FIS BaaS Hub provides a full suite of banking and payments capabilities for institutions of all sizes, allowing for more opportunities to deliver embedded finance solutions for superior customer experiences.

The BaaS Hub specializes in enabling business functions that give banks, fintechs, and corporations across any industry the ability to rapidly configure new financial services offerings. By delivering banking and payments products in an "as-a-service" fashion, institutions can pressure test rapid innovation with a low-risk "pay-as-you-grow" model.

BaaS is an innovative model for application development in which banking institutions enable third parties fintech, developers, and non-financial businesses to execute financial services capabilities.

As non-bank companies are providing embedded financial solutions such as deposit accounts, payments products and lending tools to increase customer engagement and provide additional revenue opportunities, fintech companies face fierce competition and have to facilitate innovation in BaaS.

According to reported statistics, the fast-growing Banking-as-a-Service market is expected to grow to a more than $25 billion industry by 2026 and embedded finance fintech segments are expected to reach $230 billion in terms of new revenue volume by 2025.

Fazzaco reported yesterday that ​Finastra has announced a Banking as a Service (BaaS) collaboration with Microsoft ​to bring new lending options to thousands of Small and Medium Enterprises (SMEs).