FIS, a US-based financial technology provider, including asset finance software, has announced the launch of its Banking-as-a-Service (BaaS) Hub for financial entities of all sizes.
The new solution is aimed at enabling banks, fintechs and credit unions to build digital banking and payment ecosystems to offer services to merchants and customers.
FIS noted that its BaaS Hub provides a full suite of banking and payment capabilities, allowing its clients to deliver more embedded finance solutions and launch new offerings quickly.
Through the “as-a-service” model of delivering banking and payments products, clients can test new services with a low-risk “pay-as-you-grow” model.
Initially, FIS’ API-based BaaS Hub will include services such as deposit banking, financial wellness and money movement.
FIS president of FIS Impact Ventures Rob Lee said: “The FIS BaaS Hub levels the playing field between big and small financial institutions by providing all consumers with unbundled FIS and fintech solutions that can be easily embedded into any digital channel.
“The Hub was created to be a gateway to innovation and a bridge to better partnerships between banks, retailers, and fintechs.”
Estimates suggest that the BaaS market is expected to grow into a $25bn industry by 2026 and revenues from the embedded finance segments are expected to surge to $230bn by 2025.
To capitalise on this growth opportunity, FIS plans to release new features and capabilities to its Hub in the future.
In mid-2021, US-based Fifth Third Bank and BMO Harris Bank allied with FIS to update their core banking platforms.