Everyone benefits - Customers receive a one-stop-shop and usually end up with a better user experience. Banks, or the BaaS provider, benefits from increased revenue. In the case of the Apple Card, Goldman Sachs is gaining interchange revenue. And the business or organization receives a boost from providing a closed-loop experience. When customers don’t have to leave their website or app in order to make a transaction, it not only keeps the customer coming back to the business, but also makes it more difficult for them to lose that person as a customer.
Open banking is making it possible - Even though not every location has open banking mandates, customers have become accustomed to having their financial information available across platforms. Given this, many fintechs have come up with easier ways to increase data fluidity among third parties.
Increased flexibility - There is increased flexibility in two senses: first in the types of financial services available and, second, in the way the service providers have structured contracts and how they charge for services. As a result, implementation time is not only more efficient, but go-to-market time is faster. What used to take large financial institutions months to integrate now takes days.
