eCommerce News Asia logo
The latest digital commerce news for Asian businesses
Story image

Banking-as-a-Service to hit mainstream within two years

Banking-as-a-Service will hit mainstream adoption within two years, according to the latest Gartner Hype Cycle for Digital Banking Transformation. 

Gartner predicts that 30% of banks with greater than $1 billion in assets will launch BaaS for new revenue by the end of 2024, but half will not meet targeted revenue expectations.

“These banks typically have ambitions to generate and diversify revenue streams, or to a lesser degree, aspire to extend previously sunk regulatory investments, such as PSD2 in Europe, into revenue-generating machines," says Jeff Casey, Senior Director Analyst at Gartner.

BaaS is one of four technologies that the analyst firm says have potential for high levels of transformation in the banking sector and are likely to mature within the next couple of years. The other technologies include chatbots, public cloud for banking and social messaging payments apps. 

Gartner says bank CIOs should consider how key innovations are shaping their industry and prioritise their technology investment strategies accordingly.

"BaaS sits at the peak of the Hype Cycle. The technology is gaining traction from both banks and nonbanks aspiring to establish or enhance direct and intermediated revenue streams," says Casey

“Technology innovations like these are driving bank and nonbank competitor activity, influencing customer demand for product and services, and shaping regulators’ actions globally,” he says.

BaaS

BaaS can be a discrete or broad set of financial service functions exposed by chartered banks or regulated entities to power new business models deployed by other banking market participants — fintechs, neobanks, traditional banks and other third parties.

Market participants are increasingly drawn to collaborative models that enable enhanced customer experiences, such as richer features, a broader set of products and innovative customer experiences. Nonbank participants benefit from a quick onramp to the banking market by leveraging a regulated entity’s license instead of pursuing their own charter.

Chatbots

Chatbots represent one of the primary use cases of artificial intelligence (AI) in banks and will impact all areas with communication between machines and humans. While mostly applied to customer service, IT service management or human resources, chatbot uses are incredibly diverse. The change from “the user learns the interface” to “the chatbot learns what the user wants” has implications for onboarding, training, productivity and efficiency inside the workplace.

The sophistication of the enterprise conversational AI platform market has led to enhanced tooling for banks to build and maintain chatbots using non-IT resources. Operationalisation in the business units outside of IT is making chatbot production a more productive activity.

Public Cloud for Banking

Public cloud adoption is becoming highly transformational to the banking industry since banks can achieve a greater level of efficiency and agility by moving workloads to the cloud. Public cloud for banking delivers banking-specific software within a public cloud ecosystem, by integrating those applications with different degrees, from cloud-based to fully native.

Banks achieve agility by rapidly scaling up and down to support changes in demand, as well as meet regulatory compliance by delivering on temporary demands. Resources are freed up for the development of digital assets by centralising and optimising them; fixed costs are reduced by avoiding oversized infrastructures; and cost structures are optimised. Banks are also able to centralise applications and platforms that ease development and testing, avoiding overlapping or duplications.

Social Messaging Payment Apps

Social messaging payment apps rely on instant messaging platforms to originate payment transactions. The messaging app interface is used to register payment accounts and to initiate and monitor related transactional activity. The modernisation of payment infrastructure and the ability to make use of open banking and payment APIs, provided new entry avenues for social messaging apps to deliver payments service.

The adoption of social messaging apps has transformed both shopping and payment behaviour, notably in Asia. Kakao Pay, LINE Pay, WeChat Pay and WhatsApp Pay all demonstrate how social messaging apps provide both the contextual data and interface to engage with customers.

Related stories
Top stories
Story image
Sustainable IT
Adobe surveys sustainability at work in Hong Kong employees
The top three sustainability practices are reducing paper usage (46%), digital document storage and management (43%), and curbing electricity consumption (37%).
Story image
Customer Relationship Management
NetSuite helps Australian bridal boutique to scale operations globally
Grace Loves Lace is now using Oracle NetSuite to create enhanced experiences for brides from Queensland, Australia, to locations worldwide. 
Story image
Artificial Intelligence
Exclusive: Uniphore shares how Conversational AI can be the key to business success
Conversational AI and Automation are vital tools to help further promote organisational cohesion and communication, and Uniphore is leading the charge.
Story image
Customer Relationship Management
NetSuite introduces CPQ to help organisations simplify sales process
NetSuite CPQ is the only native configure, price and quote solution built on the NetSuite platform. It works with NetSuite ERP, CRM, and eCommerce solutions
Story image
Mobile Device Management
How to easily scale your mobile workforce and devices for the peak shopping season
Retailers are under constant pressure to streamline processes and become more efficient while looking for ways to improve customer satisfaction levels.
Story image
Payment gateways
PXP Financial partners DisputeHelp management platform
The partnership will provide an end-to-end dispute management platform across all payment schemes for their merchant portfolio.
Story image
Customer Relationship Management
Salesforce launches the first carbon credit marketplace
Salesforce has introduced the Net Zero Marketplace to make carbon credit purchases simple and transparent, aiming to scale the climate-positive impact.
Story image
Data analytics
Cross-team partnerships: The foundation for seamless digital experiences for customers
The region’s digital consumer population will continue to grow exponentially, reaching 370 million by the end of 2022.
Story image
Data management
Talend Data Health Barometer reveals ability to manage data is worsening
Most respondents believe data is important, 97% face challenges in using it effectively, and nearly half say it’s not easy to use data to drive business impact
Story image
Pattern
Demand for Australian brands grows in China despite tension
67% of China’s cross-border online shoppers expecting to increase their online spending for western and Australian goods in the coming year
Story image
Cashflow
Exclusive: Corpay plans to provide more hedging features
Corpay addresses border payments and currency risk management. Offering hedging, payment technology, cash flow solutions and exotic currency capabilities
Story image
Business Intelligence
IDC finds the majority of executives expecting a recession
59% of respondents believe 2023 will be a recession year. Of these, nearly 30% believe we are amidst a recession. Another 26% expect a recession in later 2022.
Story image
Artificial Intelligence
CUE Group expands operations at its Singapore hub
The Singapore-headquartered digital technology group has doubled down on its expansion into the Southeast Asian region.
Story image
Digital Marketing
Optimizely and Orchard partner to scale marketing experimentation
Optimizely has announced a partnership with Orchard to help marketers and organisations scale experimentation through a mix of strategy and platform.
Story image
Spryker
Ready, set, flop: four reasons why your online marketplace could struggle to gain traction
There’s a saying that ‘you have to spend money to make money’. That’s not always the case but the old maxim certainly holds true when it comes to online marketplaces.
Story image
Cybersecurity
Employees unsure who to go to to report security incident
A new study shows more than 20% of the untrained global workforce do not know who to contact during a security breach.
Story image
Artificial Intelligence
The App Edit: why conversational commerce is overtaking the app
Consumers appear to be suffering choice fatigue and are reducing the time spent across different apps. People favour a small selection of quality items in their wardrobe, and they’re taking the same approach with their apps.
Story image
Cloud
Banking-as-a-Service to hit mainstream within two years
Some 30% of banks with greater than $1bn in assets will launch BaaS for new revenue by the end of 2024, but half will not meet revenue expectations.
Story image
Customer Relationship Management
Digitally evolve the smart way – federated content
Digital transformation became the ‘buzz word’ for many companies. Time to re-evaluate those old legacy systems, move to new and better ways of doing things
Story image
Verizon
Cybersecurity threats finance sector facing more cunning
The financial sector continues to be victimised by motivated organised crime, with servers being involved in 90% of financial breaches.
Story image
Cloud platforms
Salesforce partners with Snowflake and introduces ‘Hire Me’ button
According to a recent Salesforce report, 73% of customers expect companies to understand their unique needs and expectations
Story image
Software-as-a-Service
Marketplacer available on Salesforce AppExchange now
Marketplacer is now available on Salesforce AppExchange, an enterprise cloud marketplace, as the Marketplacer Salesforce Commerce Cloud Cartridge.
Story image
Customer Relationship Management
New kid on the block: How your business can build up its online marketplace expertise
Without the support of a skilled team, it’s impossible to realise the benefits of an online marketplace in full, observes Marketplacer executive Anna Trifonopoulos, VP of Customer Delivery, Marketplacer.
Story image
Customer Relationship Management
Diagnostic: Does your tech stack up for growth?
It’s common for tech companies to encounter limitations in their tech stack as they experience growth. After all, at first, you only need to invest in systems to support the needs of an early-stage or single-entity business.
Story image
Digital commerce
VTEX and Adyen partner to extend unified commerce experience
"Through our partnership we are creating an all-in-one place that allows sellers to meet customers where they are in the buying process and unlock opportunities."
Story image
Payroll systems
Video: 10 Minute IT Jams - An update from UKG
Charlie DeWitt and Greg McManus join us today to discuss the importance of payroll in todays operating environments, and why automated processes can often be a key driver of success.
Story image
Encryption
Entrust advances Sigma Instant Issuance Platform for cards
Unique light curing module for Entrust Sigma instant issuance systems brings new financial card durability and personalization to card issuers.
Story image
Satellite technologies
Kacific wins big at the World Business Outlook Awards
The Kacific Group has been recognised in the World Business Outlook Awards for providing high-quality broadband services and infrastructure throughout APAC.
Story image
Artificial Intelligence
WyreStorm unveils new video bars and an HD video system
WyreStorm has released new products, including two video bars and a high-definition (HD) video system, to improve customers' audio and video experience.
Story image
Springboard
Springboard, Cataleya to offer switching infrastructure solutions
The partnership bundles Springboard's business intelligence platform with Cataleya's switching solutions to rapidly transform voice and messaging.
Story image
Marketing Automation
Marketplacer recognised in Gartner Hype Cycle for eCommerce
Marketplacer has been recognised in the Gartner Hype Cycle for Digital Commerce 2022 as a sample vendor in the enterprise marketplaces category.
Story image
Online shopping
FedEx expands international day-definite delivery services across AMEA
The company says the continuous expansion of the FedEx International Connect Plus (FICP) is also set to fuel cross-border eCommerce growth within the APAC region.
Story image
Fintech
Zai announces partnership with TerraPay to accelerate global payments
This partnership supports both Zai and CurrencyFair's product suite, with better coverage across the global payments ecosystem
Story image
Future Tech
Top seven CIO disruptions highlighted by Gartner
CIOs need to consider “what if” scenarios to avoid being blindsided by social, behavioural and technological disruptions, according to Gartner.
Story image
Customer experience
Loyalty, pricing and service are D2Cs biggest shortfalls
There is a key gap between brand manufacturer drivers for D2C deployment and their executional shortfalls, a new report reveals.
Story image
Digital Transformation
L’Occitane Japon reduces fraud with Forter’s platform
L’Occitane Japon increases revenue, reduces chargebacks and fraud, and creates a seamless customer experience with Forter’s fully automated platform.
Story image
Artificial Intelligence
Salesforce introduces new Customer 360 innovations
Salesforce has introduced new Customer 360 innovations, which are set to provide companies with better automation and intelligence technologies.
Story image
Software-as-a-Service
Jabra launches AI-powered SaaS solution for contact centres
Engineered to transform contact centre call experiences, the solution employs AI technology that provides real-time insights to improve customer calls.
Story image
BigCommerce
The metaverse, cryptocurrency and NFTs set to revolutionise retail
BigCommerce has released its consumer survey designed to give retailers insight into current and emerging trends shaping the way consumers buy from brands.
Story image
Artificial Intelligence
Ordr improves security and management of connected devices
It has implemented more than 80 integrations within the Ordr Data Lake while adding security enhancements to accelerate zero trust segmentation.