How Banking-as-a-Service is Promoting Financial Inclusion Worldwide

This April, The Fintech Times is focusing on embedded finance, the integration of financial services into non-financial products and services. As this field rapidly advances, it’s crucial to highlight how Banking-as-a-Service (BaaS) is driving financial inclusion across the globe, reaching new markets and underserved communities.

Nike Shoge, head of growth at Starling Banking Services, emphasizes the impact of BaaS solutions: “The BaaS model enables fintech innovation to grow in markets that are yet to benefit from the rise of digital banking. Under this model, digital players can focus on disrupting the traditional banking sector in their market by honing in on the user experience of their financial products and ‘the big idea’.»

Paul Staples, group head of embedded banking at Clearbank, highlights how BaaS helps firms support underserved communities: «BaaS and embedded banking services help to serve all kinds of niches that are underserved by larger entities, whether that’s specific industries, demographics, or simply groups that are left behind by big banks trying to be everything to everyone.»

Staples further notes the impact on financial literacy, citing the example of Wealthify, which focuses on young people’s financial literacy, and incuto, a platform for credit unions and community banks serving underserved communities.

Alana Levine, chief revenue officer at Fintel Connect, explains that BaaS drives financial inclusion by enabling faster innovation and greater accessibility: «Financial inclusion starts with access – and that doesn’t always come easily through traditional banks. BaaS enables the opportunity for faster, more nimble innovation, experimentation, and launch of financial products and services that create more accessibility for those underserved audiences.»

Mark Vermeersch, chief platform officer at Treasury Prime, highlights how BaaS enables fintechs to innovate and create new financial products and distribution channels, driving broader financial inclusion.

Milan Khrapchenko, co-founder and co-CEO of Ameetee, emphasizes how BaaS facilitates more convenient and tailored financial experiences, enhancing customer engagement and satisfaction globally.

Lisa Arthur, US director and global chief marketing officer for API management platform Sensedia, explains how BaaS democratizes technology, enabling non-financial institutions to drive new opportunities to underserved populations.

BaaS is revolutionizing financial services, making them more accessible, innovative, and inclusive, ultimately driving financial inclusion across the globe.