What is Banking as a Service?

Banking as a Service is used by the likes of Chime, Monzo, and so many more online banks and financial service providers.

So, what exactly is Banking as a Service (BaaS)?

Well, it’s the provision of complete banking processes as a service using an existing licensed bank’s secure and regulated infrastructure, with modern API-driven platforms from a specialist provider. These providers partner with those banks, and then BaaS lets almost any brand to embed financial services into their customer experience​. And that might sound complicated - but it doesn’t have to be. Here to give you a run-down of BaaS is 11:FS Head of Ventures Simon Taylor.

PayPal is the biggest threat to British banks

From Payments Eye

“The threat to UK lenders by challenger banks like Metro Bank and Virgin Money pales in comparison to that posed by PayPal, according to new research.

A study of 2,000 banking customers by YouGov and the law firm Pinsent Masons found that nearly a quarter were more likely to switch to a digital payments service, such as PayPal or WePay, than to a mainstream bank in the next two years.

Just 13% said that they would consider a switch to a new bank in the same timeframe, and fewer than one in twenty would move to a technology company such as Facebook or Google.

“I suspect people see them as trustworthy because they’re already proven in the payments space,” John Salmon, head of financial services at Pinsent Masons, told the Financial Times.”

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Bankers beware: Technology is going to get you (and none of us will care)

From Computerworld

“Technology is about to transform the banking sector. A September 2013 Aite Group survey of business users showed that many of them already use alternatives to banks, for everything from electronic payments to cash flow forecasting.

Can you blame them? Do any customers love their bank? Have any of us who struggled with the impact of the 2008 crash forgiven the senior bankers who collected eye-watering bonuses? Well, it might be payback time. New technologies are preparing to take a big slice of the traditional banking business.

Bankers have been slow to recognize the technology threat, but it's becoming visible to some of them. Speaking at June's Future of Financial Services conference in London, Barclays chief executive Antony Jenkins warned: "We are on the leading edge of a technology revolution. You can't see it, but it's coming, it's coming hard, and it's coming fast." Here's the problem, though: The banks aren't on the edge of a threat -- the threat is already here.”

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Young North Americans willing to go branchless

From Finextra

“Nearly four in 10 young North Americans would be happy to consider switching to a purely digital bank that has no branch network, a survey from Accenture shows.

Of nearly 4000 people quizzed by the consultancy, 27% would consider going branchless. This rises to 39% among 18 to 34 year olds but drops to 16% among people over 55.”

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Self-updating Bitcoin price tag shown off in east London

From BBC

“A tag that shows an item's price in virtual currency Bitcoin and updates itself depending on market fluctuations has been shown off in east London.

BitTag uses wireless technology to connect to the internet and check the value of Bitcoin, altering the tag display once a minute.

Its creator hopes it will allow shops put off by Bitcoin's volatility to adopt the virtual currency.

Bitcoin's value has surged and crashed often in recent months.”

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Five Key Questions about Retail Banking's Future

“The future of retail banking has rarely been murkier — and predicting it has rarely been more important for banks.

The economy and new regulations have made it increasingly difficult for banks to turn a profit from the old bread-and-butter business of taking deposits and lending money. At the same time, competition for this business is mounting. In recent weeks, banks of all sizes have tried to rethink their branch strategy, their staffing costs, their technology offerings and their alternate sources of consumer banking revenue.”

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What we are reading … 4th March 2013

Consumers remain resistant to digital banking aspirations http://dld.bz/cm5Sy

Banking Fraud: Trends and Technologies http://dld.bz/cm5Ss

Majority of Americans Desire Portable Bank Account Numbers: Study http://dld.bz/cm5Sq

Fed Publishes Interactive Bank Failure Map http://bankinnovation.net/2013/02/fed-publishes-bank-failure-map/

New Startup Passport Aims to Take the Pain out of International Money Transfers http://dld.bz/cmc5y

MasterCard's Mobile World Symposium: mPayments Around The Globe http://shar.es/j6CR8

Samsung unveils 'Wallet', an Android alternative to Apple's Passbook http://shar.es/j6CbO
More convenience, less privacy http://reut.rs/Y0uVdQ

What we are reading … 18th February 2013

Visa Launches Mobile Money Managed Service for the 'Unbanked' http://dld.bz/chjBw

Global Watchdog Needs More Time on Derivatives Rules http://twb.io/12yyR5y

Nigeria: Transactions On Electronic Platforms Hit Record N40bn http://shar.es/Yll6z

9 ways to improve ATM estate performance in 2013 http://www.finextra.com/Community/FullBlog.aspx?blogid=7377

To Encourage Mobile Payments, Select LevelUp Merchants Ban Credit Cards in Stores http://betak.it/p1S

Consumers Expect More From Mobile Banking Apps Than They're Getting http://bit.ly/Ycgd2b

Apple and the Future of NFC http://www.finextra.com/Community/FullBlog.aspx?blogid=7374

Movenbank strikes deal with tech vendors

Movenbank has struck deals with three vendors for the provision of payment, mobile and personal finance management technology.

Movenbank, which pitches itself as a mobile-centric, cardless and branchless bank, opened up an 'alpha site' last year to trialists and is "working towards" a commercial launch later this year.

Like fellow tech-heavy new entrant Simple, the firm is not actually a bank, instead working with partners that have charters and FDIC insurance while it provides the front-end.

To help it do this, it has now struck deals with Fidelity Information Systems, Tagit Mobile and Geezeo to develop its integrated payments, mobile commerce and personal financial management platforms.

Scott Bales, chief mobile officer, Movenbank, says: "Each of our strategic partners have been hand-picked to deliver Movenbank's vision of creating a world-class mobile centric customer experience, with feedback loops that will help our customers spend, save and live smarter with their money."

Last month the firm raised $2.4 million in seed funding and launched its proprietary CRED relationship and credibility score, which analyses financial data, social influence, and shopping patterns.

CRED is a real-time measure of financial health that that analyzes financial data, social influence, and shopping patterns.