<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/banner1251.webp" alt="M2P Fintech" title="" id="pzkn5bsd" width="100%" height="356">A crowded building with people spending a lot of hours in a queue to get their service done – this is almost everyone’s idea about the term “Bank.” But now, it looks suave after an upgrade with a fresh look.Gone are the days when people spent a day getting their banking service done. After the great technological innovation, traditional banking is no longer considered a troubling word. Several advancements acted as a trigger for the players like fintech companies and other third-party service providers (TPSP) to cause a paradigm shift that posed a challenge to traditional banks.<h2 class="heading-node" id="kqq3yw2uf">What does Banking as a Service mean?</h2>Simply put, Banking as a Service (BaaS) is an end-to-end process that involves FinTechs and other third-party service providers(TPSP) to access the bank’s financial services through <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">APIs</a> for offering a different and personalized financial approach to their customers.<h2 class="heading-node" id="83d7">Banking as a Service - The Bonanza</h2>Over the years, banks provided financial services to their customers using rudimentary infrastructure. But now, many tech-savvy banks evolving around have pushed every bank to upgrade their services to maintain their lifetime value. To meet this rising demand, FinTech comes into play by integrating their white-labeled services by accessing the bank’s APIs.Looks like banks were on a ride of a lifetime to the technological planet with many advancements at fore. One such advancement is Banking as a Service. It is a business model which plays a crucial role in strengthening the customer base with the help of fintechs that provide innovative financial assistance to the bank. Banking as a Service pioneers a huge window of opportunities for digital banking and rockets the revenue.As<a class="link" href="https://m2pfintech.com/blog/embedded-finance-101-the-bridge-connecting-tech-and-financial-services/"> embedded finance</a> is treasured and demanded by many NBFCs, software companies, and logistic firms, BaaS has gained popularity and is now ubiquitous for bringing promising financial features for their customers and even escalates their revenue growth.Predominantly, fintech start-ups have come up in large numbers. They target banks to promote and promulgate their business by offering innovative products and services. The fintech sector collaborates with banks to gain rapid acceptance by the customers to provide loans, cards, deposits, insurance, make payments, and many trusted financial services.<h2 class="heading-node" id="e682">The Working Mechanism of BaaS</h2>Banking as a Service works on providing trendier products than ever to customers with a more qualified user experience. The pandemic skyrocketed the demand for payment digital apps. Amidst the chaos, these contactless payments created a brighter picture by providing ease of use while staying indoors.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-7-9.webp" alt="M2P Fintech" title="" id="49t76cu8b" width="100%" height="284">There are two ways to carry Banking as a Service seamlessly.<h3 class="heading-node" id="6785">API- based stack</h3>With API’s intervention, FinTechs and other third-party service providers (TPSP) can help banks offer customers a transparent, smooth, and customized financial service along with the existing banking services. Customers feel a better user experience when providers synchronize and connect with the bank’s tools and services. Simplified money flows are now possible with very few clicks for the customer.The fintechs are given secured access to banking services followed by integrating bank’s APIs with the provider’s products to further execute seamless white-label banking services using upgraded technology. They strictly abide by the rules and regulations in carrying out the bank’s data safely using top-notch security systems like PCA.<h3 class="heading-node" id="b6e9">Cloud-based stack</h3>Here, the licensed tech companies operate as regulated banks to offer the services by pushing the traditional banks to the inoperative section in this play by redefining their stacks to cloud sections.<h2 class="heading-node" id="0ecf">The Three-Layered Structure of BaaS</h2><ol class="list-node" id="1ye58bqfe"><li>Infrastructure as a Service (IaaS) includes the basic financial services provided by the traditional banks through an IaaS provider.</li><li>Banking as a Platform (BaaP) is placed above IaaS, which includes the customized services offered for fintech start-ups and companies. The data carried out between the banks and fintechs are monitored securely as data security is concerned.</li><li>FinTech SaaS — Here, the fintech companies which offer financial services interact with the end-users to carry out the data or requests and sends it back to BaaP securely.</li></ol><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-10-3.webp" alt="M2P Fintech" title="" id="k6nerr46b" width="100%" height="284"><h2 class="heading-node" id="80d9">Evolution of Banking</h2>This era has witnessed the massive emergence of tech-savvy banks. One such popular emergence is the&nbsp;<a class="link au js" href="https://m2pfintech.com/blog/neo-banking-the-rise-of-new-age-banking/" rel="noopener">Neo Banks</a>. They are digital banks that operate only online with the help of artificial intelligence, machine learning technologies, and <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">APIs</a>. Cost-efficient, convenient, and user-friendly interface are what makes them stand out. Neo banks partner with traditional banks to digitally offer services from opening a bank account to money transfers/bill payments 24x7.FinTechs play a crucial role by building their innovative infrastructure on top of it, making the Neo Banks more popular. Banking as a Service is the backbone of Neo Banks as they are dependent on APIs and other crucial financial services they offer.We take pride in the fact that <a class="link" href="https://m2pfintech.com/">M2P</a> powers&nbsp;Finin, India’s first neo bank with our APIs that enables instant provision of user’s bank account and prepaid cards.<h2 class="heading-node" id="ka11sfo39">Types of BaaS Providers</h2>BaaS providers can be classified into three models based on their purpose.<ul class="list-node" id="knjzk1ypi"><li>API Stores&nbsp;— Traditional banks open their API for fintechs and other TPSPs to incorporate their innovative bank services for customers.</li></ul>Services offered: eKYC, beneficiary validation, remittance, inquiry, etc.<ul class="list-node" id="dcdqfn7c5"><li>White-Label Platform&nbsp;— Companies that don’t carry a license can also approach fintechs and other TPSPs to offer their white-labeled service. But, in India, a license is a must to carry out this model.</li></ul>Services offered: Digital banking &amp; cards, lending, blockchain, payments, etc.<ul class="list-node" id="ikgg6uif1"><li>BaaS as Co-branding&nbsp;— The fintechs or neo banks carry their appearance in the forefront for the traditional banks to offer their effective services.</li></ul>Services offered: Banking &amp; Cards, Integrated payment gateway, etc.<h2 class="heading-node" id="b3e1">Open Banking vs. Banking as a Service</h2>Let us elucidate the long-haul confusion between <a class="link" href="https://m2pfintech.com/blog/open-banking-a-primer-2/">Open Banking</a> and Banking as a Service. In a nutshell, the usage of APIs by fintechs determines the difference between these two.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/1_PMHIFWMQVSCmoFwYkpGQkg.webp" alt="M2P Fintech" title="" id="fcg7dxzxw" width="100%" height="181"><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-11-2.webp" alt="M2P Fintech" title="" id="9n9mxbvuv" width="100%" height="284"><h2 class="heading-node" id="c3d7">Benefits of Banking as a Service</h2>Nowadays, fintech start-ups shine with their innovative ideas and serve any financial need, making banks powerful. The mobile-first approach and everyday emerging digital advancements made Banking as a Platform a successful one in the industry. Also, the transparency and ease of use foster the growth of open banking by quickly nearing the go-to-market reach.Banking as a Service is the new evolution for both traditional banks and fintech sectors. The traditional banks who are smarter enough in adapting to the digital era can attain profitable accomplishments. They are forced to attract more young clients with their newer technologies and methodologies in financial services. For instance, the traditional banks can now collaborate with third-party service providers to expand their services like vehicle insurance, lending, <a class="link" href="https://m2pfintech.com/blog/remittance-with-upi-a-giant-leap-for-cross-border-payments/">remittance</a>, rewards, currency exchange, and many more.Many banks’ go-to option is now BaaS since they cannot remodel their infrastructure for back-end, front-end development and give a more product-centric approach as fintechs do. Banks prefer it is better to approach fintechs and TPSPs rather than making a huge investment building in-house.With banking service as a platform, it is simpler to launch and integrate banking features with the magic wand called <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">API</a>.To make the long story short, BaaS is the savior for many banks, non-financial companies, and customers.Yes! We all have the same thought. The future holds more for banking.We can conclude that it will always be a money-spinning venture as fintechs and banks follow the collaborative way of doing business to produce more innovative services to their customers. Without a shadow of a doubt, the journey of Banking as a Service had just started, and we have a lot more to witness together.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Banking as a Service - Redefining Financial Services

&nbsp;<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner.webp" alt="M2P Fintech" title="" width="100%" height="529">Decades back, our banking systems were massive local servers poised at a physical location of a bank. The conversation between branches happened only at a specific time. Any transactions that occurred after were reserved for another day.The local servers handled the heavy load of deposits, account openings, loans, and credit processing in its designated area. So, going to the bank to avail these services required planning downright to its every tiny detail.Fast-forward a few decades, banking has taken a its digital avatar where traditional banks and new-age neo banks compete for customer attention and retention. Traditional banks are now making the hard choice of restructuring the legacy systems. But, they face the unique challenge of data management and processing.Just to render swift and intelligent services, they need to leverage analytics, break down data silos and restructure data according to the needs of the business. The vast amount of data generated brings the points of scalability and flexibility into focus. It has driven banks towards a service-based delivery model.The primary challenge that banks face is in consolidating data and offering contextual banking. The legacy systems are often limited by performance and horizontal scalability. They also have a minimal understanding of polymorphic data handling capabilities.This is where APIs come to the rescue; as banking is a global transaction exercise, they seamlessly integrate as a plug-n-play platform. With <a class="link" href="https://m2pfintech.com/blog/neo-banking-101-all-you-need-to-know/">neo-banking</a> and <a class="link" href="https://m2pfintech.com/blog/open-banking-a-primer-2/">open banking</a> on the rise, <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">banking APIs</a> offer the following benefits:<ul class="list-node" id="78x0lme2c"><li>Multiple platform data aggregation and gain a higher share of target customers</li><li>Enhanced operational efficiencies with automated processes</li><li>Niche digital user experience</li><li>Potential to scale complex operations with minimal effort</li></ul>Many banks have integrated APIs as microservices and adapt cloud-based processes whilst reducing their dependency on the core banking system. Furthermore, APIs have helped improve a bank’s or any financial institution’s native service and offerings.To sum up, APIs have enhanced banking services and have helped craft a user-driven experience that focuses on experiential generation.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Transactional to experiential banking- The Paradigm Shift

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/banner-1251-2.webp" alt="M2P Fintech" title="" id="g4x9lr2sv" width="100%" height="479">Bridging the shortcomings of traditional banking through integrated value chains and regulatory requirements, <a class="link" href="https://m2pfintech.com/blog/neo-banking-101-all-you-need-to-know/">neobanks</a> today offers a holistic twist to banking services. User-friendly and completely digital, these banks work on referral-based acquisition and competitive pricing.With no banking license of their own, neobanks partners with traditional banks to offer their service suite. While this might be a pain point, neobanks target niche micro-segments like the Gen-Z because of their higher transaction volumes. Coupled with Data Analytics, neobanks bring forth innovative solutions to help individuals keep better track of their finances.For instance, our client Finin, India’s first neo bank, has brought on a feature where users can have a unified view of their bank accounts via their platform. It helps a user to keep better track and plan their financial journey.<h2 class="heading-node" id="27ed">Unbundled Banking</h2>Neobanks today are focusing on offering one type of product/service with complete functionalities. They operate with customized tech stack modules aimed at niche segments with user convenience as the focal point. Some of the top global neobanks are Revolut, Monzo, WeBank, Chime, etc.Paradoxically, legacy banking institutions cannot create these experiences as they face redundant processes, <a class="link" href="https://m2pfintech.com/blog/why-payments-interoperability-is-a-must-for-todays-generation/">interoperability</a>, etc. Fintech professionals realized that an obsolete technology stack was limiting the interoperability of traditional banking. This, in turn, guided the notion of Unbundled Banking, with neobanks steering the helm.Unbundled banking further narrowed that focus on customer experience, user convenience, and simplified processes. In this approach, anyone can launch banking products minus the need to go through a rigorous process of setting up a bank.<h2 class="heading-node" id="d0fd">Neobanking Revenue Model</h2>Neobanks operate on a strong cost-efficient model backed by less complex IT systems. So, their revenue model depends on the kind of products and services offered by them. Cross-selling of products/services to niche customer segments also acts as a secondary revenue stream for neobanks.They are driven by data-based decisions that depend on a decision-making model. Neobanks gather consumer data and analyze them and predict consumer behavior. These predictions help to offer customized services to their target customers. By deploying AI-driven chatbots, video chats, and data analytics, neobanks are available to customers as a cost-effective banking service right at their fingertips.Neobanks cross-sell and generate secondary revenue streams with a range of customized offerings suitable to customer’s needs. They also offer payments and accounts back-end platforms for other fintech companies to build their own interface on top of it.<img src="https://miro.medium.com/max/1400/1*ccQft1zHg2RQupLqXoK1YA.png" alt="Neobanks’s revenue model" title="" width="100%" height="306">Plug and Play solutions with 3rd party service providers with ease and data insights. With this, they can offer a range of products and services based on customer appetite and financial goals to boost up the secondary revenue lines and opportunities for cross-selling.&nbsp;Boosting lending options to customers and the SME sector will help generate revenue options.<h2 class="heading-node" id="6d68">Neobanks &amp; the less-digitally savvy users</h2>The audience that comprises this segment is often elderly and rural customers; capturing their trust is quite an uphill task for neobanks. They gain such customers with a free account and low fees and budgeting tools and cash projections based on past spending, and ‘savings pots’ for spend categorization. Offerings like High-Yield Savings Accounts and easy money movement through lower fees &amp; charges are some ways.Neobank growth can be accelerated through adaptable services and convenience in money transfer like cheaper lending rates and better rural audiences’ products. Creditors can choose borrowers and information from diverse sources and technology-based lending.&nbsp;Like how social media platforms have pulled in rural customers, neobanks also need to create awareness through their user-friendly applications.Reduced data rates &amp; smartphone prices will also encourage rural customers to use neobanking apps and gain trust.<h3 class="heading-node" id="e927">Neobanks &amp; Transparency</h3>The issue of banking transparency is closely linked to <a class="link" href="https://m2pfintech.com/blog/fintech-a-catalyst-for-financial-inclusion/">financial inclusion</a>. Neobanking transparency can be improved through dashboards, reports across products with enhanced interfaces, and easy-to-understand services such as payments, payables and receivables, and bank statements. They must explain real-time notifications, any charges, and penalties incurred by the customer too. They should send instant alerts to customers to know exactly what is going on with their account.<h3 class="heading-node" id="2fb2">Security &amp; Privacy</h3>Neobanks were the primary users of security-enhancing models. These were MCC block, single-use <a class="link" href="https://m2pfintech.com/blog/all-you-need-to-know-about-virtual-cards/">virtual cards</a>, and tokenized online transactions. They rely on security and safety when designing platforms, like data localization or 2-factor authentications (2FA) for card-based transactions.Neobanking enables third-party financial service providers (TPPs) to access customer data from banks or financial institutions. They must maintain robust online anti-fraud systems and inform customers of breaches as soon as it happens.Customer permission is required to ensure data privacy or share certain information with banks or providers. For instance, if the customer gave consent, they can share financial data like spending habits and regular payments with other banks.Providers must comply with <a class="link" href="https://m2pfintech.com/blog/gdpr-in-a-nutshell/">GDPR regulation</a> and data protection rules. They must provide transparency on how and for what the data will be used, for how long before they get a customer to sign up.<h3 class="heading-node" id="04ca">Trust</h3>Neobanks have strong drivers for securing their customers’ accounts, which are reputation management &amp; consumer perception. Developing trust can also be a challenging factor for loyal traditional banking customers.&nbsp;Fines, data breaches, and attacks can significantly damage consumer trust in non-traditional banks. Therefore, neobanks must protect consumers from mobile Trojans phishing scams and account takeover attempts. They can earn consumer trust through advanced authentication concepts such as dynamic linking, device binding for mobile apps, mobile application shielding, and transaction risk analyses.Strong privacy and data protection policies like removal of hidden fees and charges can help build consumer confidence in neobanks.<img src="https://miro.medium.com/max/1400/1*0VH_WhJDpgy4AEpgB9ivEA.png" alt="Advantages of Neobanks" title="" width="100%" height="306">Neobanks are trying to simplify the ways of transacting through digital mediums through:1. Simplified process with minimum steps to complete with minimum redirect for the transaction/payment 2. Tightly tying up and different players in the ecosystem (Retailers, Digital Service Providers, Issuer and Acquirer banks, etc.) 3. Standardization across devices and internet browsers 4. Compatibility across platform and technologies 5. Educating conventional customers on digital payment and ensuring that money is safe.<h2 class="heading-node" id="1e23">Neobanks Vs. Traditional Banks</h2>Traditional banks are focused on product-centric models, meaning high verticalization of products, no strong communities built around the brand/product, increased customer acquisition cost, and legacy technology infrastructure.But currently, traditional banks have been increasingly offering unique products and services to customers. One might wonder how neobanks will continue to differentiate themselves from conventional banking as a result.Neobanks can tackle product competition by keeping the focus on a platform-centric model. For example, high community engagement with the product, product horizontalization with best-in-class apps, open-banking APIs, and capitalize on a mobile-only approach for the low customer acquisition cost. A lower dependency on 3rd party providers and real-time data integration and management might help too. Above all, customer-centric organizational design and customer needs to drive data architecture.Neobanks create an ecosystem of services around their infrastructure, shifting the banking value from branches to their <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">API</a> layer.&nbsp;They expand their user base by providing services on a 3rd party platform or offering 3rd party services on their platform.The neobanks’ value propositions &amp; CLV is based on lower costs, personalized insights, predictive intelligence, user-friendly interfaces, easy accessibility, and simplified processes.<h2 class="heading-node" id="17cf">The Global Way Forward</h2>On a global scale, neobanks are on an upward growth trajectory in Europe, followed by America. The real neobank growth is being unlocked in the APAC region, with many countries devising their virtual banking systems.Hong Kong, Taiwan, and Singapore have already implemented virtual banking licensing, with Thailand and Malaysia following suit.In India, neobanks are still nascent. Still, they are playing a leading role in helping small businesses to manage finances conveniently and comprehensively. The data below shows that the Indian neobanking market is growing fast:<ol class="list-node" id="701721vxm"><li>Average market maturity of India is 2–3+ years compared to 5–6 years+ in Europe and the US.</li><li>Number of neobanking players in India has gone up in the recent past compared to global markets.</li><li>Fund raised by Indian neobanks have gone up to $168 million</li><li>Indian neobanks are boosting up the competition through value-added services apart from standard offerings.</li><li>Indian Government supports the MSME sector through different schemes that open up Indian SME neobanks opportunities.</li></ol>Neobanks are expected to explore strategic partnerships with&nbsp;established traditional banks to grow in India. The Reserve Bank of India (RBI) has not permitted a digital license to neobanks yet. RBI has initiated the change by providing a license to small finance and payment banks, to begin with. Banking Industry experts are hopeful that RBI will also work on policies to approve banking license for digital-only or neobanks soon in the post-covid-19 era. This will keep the fate of neobanks blurry.<h2 class="heading-node" id="c577">Conclusion</h2>Fintech will continue to push neobanking as the new normal. The pandemic is just a catalyst to ignite the digital transformation. Neobanks are challenging mainstream traditional banks. They are backed up by digital backing licenses and control most of the value chain from front-end to back-end.Till then, neobanks in India will have no option but to continue partnering with the traditional banks to offer services.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Neobanking - The Rise of New-age Banking

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/gametech-2.webp" alt="M2P Fintech" title="" width="100%" height="383">It’s quarantine, and Sam is busy playing Among Us with his friends. As he progressed through levels, Sam wanted to upgrade his avatar to match his friends. That’s when he came across the in-app buy button. As he had linked his cards to Google, Sam immediately purchased the avatar and continued his gaming journey.Now you might be wondering, why is gaming featured in a fintech newsletter? Well, here is our unique angle to it:GameTech is a fresh vertical that combines <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">financial technology</a> and the gaming industry into one.With the onset of the pandemic, Gamification has integrated itself with our lives. Paradoxically, this lockdown also saw increased connections with the family through heritage games like Ludo. However, many had also turned to mobile gaming as part of their lockdown activities.While most online games offer in-app purchases that enhance a player’s gaming experience, like upgrade their avatar or unlocking bonus features that help them advance in the game. This means that thousands of gamers are now opening their <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital wallets</a> to take advantage of the slashed prices and limited offers that are often irresistible to pass up.This is why online gaming is now a part of the fintech ecosystem.According to Newzoo, the games market will account for $174.9 billion by the end of this year. This figure is a $15.6 billion increase from a forecast done in the beginning stages of COVID.On a global scale, online gaming was once dependent on <a class="link" href="https://m2pfintech.com/blog/credit-card-processing-a-definitive-guide/">credit cards</a> and ATMs for purchases. But since then, the gaming industry had rolled out a robust payment structure to streamline gamers’ transactions.India’s gaming market is projected to be $1 billion by 2021, a significant increase from $260 million in 2016. Indian gamers view it as a competing platform to bond with their friends. This mindset has run deep in India’s Tier 2 and Tier 3 cities, where the adoption of apps and in-app purchases is the highest. A result of this consumer behavior has led to revenue generated from customizable avatars and virtual coin packs arising from the apps. Revenue was also generated from ads that gamers needed to watch to receive extra features in the game.This response has prompted e-gaming businesses to change their models from download volumes to one engineered on consumer engagement and experience. With more than 400 gaming start-ups trying to make online games interactive for India’s 500 million smartphone users, the game tech industry looks at two-folding investments within a few years.Gametech in India is a market worth tapping into for its immense potential. With the current scenario, we hope to see India become a key player in online gaming in the coming years.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Gametech- A rising star in the fintech world

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/05/Artboard-1-copy-8.webp" alt="M2P Fintech" title="" width="100%" height="383">India is fast emerging as the leader of consumer <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">fintech</a> adoption at 87% with rapidly changing demographics and consumer behavior. Coupled with the government’s initiatives and regulatory policies, India was the perfect environment for deploying the Visa Everywhere Initiative (VEI).Started in 2015, the Visa Everywhere Initiative is a global program spread over six continents. More than 6000+ start-ups have benefitted and raised around $2.5 Billion in funding. But this is not the first time VISA has been active in the Indian fintech ecosystem.The programs of<ul class="list-node" id="3eh65jn4a"><li>The VISA Developer Program</li><li>VISA Ready Program</li><li>Fintech Fast-Track Program</li></ul>were already launched to cater to the ever-growing needs of the Indian fintech ecosystem.Also, the VEI initiative was explicitly customized to address the challenges of<ul class="list-node" id="htb8zqgg0"><li>Digital issuance</li><li>Onboarding of merchants</li><li>B2B payments value chain transformation</li></ul><h2 class="heading-node" id="0b92" style="text-align: justify">The Indian Connect</h2>VEI started its roadshow in five cities across the country so that Fintechs can get acquainted with it. Right from early-stage to established Fintechs, everyone got themselves registered with the platform. This event was also held at Sambalpur, which was the “India first” idea for VEI, and it brought forth local fintech founders.Loads of engaging conversations about how <a class="link" href="https://m2pfintech.com/blog/the-rise-of-digital-payments/" target="">digital payments</a> were used to transform business models across countries were discussed. It was when VEI became a platform that inspired Fintech, and #InspireIndianFintechs became the slogan.This program also took on the mentorship stead and brought forth experts across VISA verticals. The experts mentored and offered technological support to the participating fintechs. Soon, the participating fintechs pitched their solutions with proof of concept. All this mentorship and demo was to be followed by a grand finale.<h2 class="heading-node" id="48fb" style="text-align: justify">The Learnings</h2>VEI’s journey through India brought a treasure trove of mutual learning. But, it also put forth the challenge of organizing the right outreach for fintechs and arming them with relevant APIs. VISA overcame this obstacle by giving them access to the VISA developer portal and its <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">APIs</a>. Also, the global expertise of the mentors helped the participants leverage VISA tech and assets.<h2 class="heading-node" id="ecac" style="text-align: justify">The Success</h2>The first edition of VEI turned out to be a huge success, with so many instances increasing the adoption of digital payments. It ignited a revamp of essential services to empowering micro-businesses along with support solutions.<h2 class="heading-node" id="1adf" style="text-align: justify">The Obstacle</h2>The chronicles of VEI in India started in late 2019, but before they could get to the main event, COVID-19 had forced a nationwide lockdown. But it also brought forth solutions to tackle the post-COVID era.<h2 class="heading-node" id="1c91" style="text-align: justify">Fintech’s future</h2>The Fintech ecosystem is all set to drive a radical change on the brink of customer experience and innovation. VEI will be the bridge that will connect legacy institutions and new-age Fintech, boosting financial inclusion. The customer will be the recipient of the best of both worlds. VISA will play a vital part in India’s journey of becoming a digitized economy.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox.Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

The VISA Everywhere Initiative — A journey spanning 100 countries

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/banner.webp" alt="M2P Fintech" title="" width="100%" height="358">APIs, or small lines of code as we laymen understand it, is a capsule that powers <a class="link" href="https://m2pfintech.com/blog/fintech-101-discover-the-3ws-of-fintech/">fintech</a>. And fintech is a term that points to a company or tech powering financial services.Right from simple chatbots, <a class="link" href="https://m2pfintech.com/blog/future-of-payments-processing-matched-with-industry-needs/">payment processing</a> platforms to crypto and blockchain industries, the world of fintech is quite huge.Also known as financial infrastructure companies, fintech uses APIs to offer customer-centric products and fill the gaps of legacy banking practices.<h2 class="heading-node" id="0gw0m72nh" style="text-align: justify">What is an API?</h2><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/int1.webp" alt="M2P Fintech" title="" width="100%" height="358">The standard textbook definition of <a class="link" href="https://m2pfintech.com/blog/api-the-power-that-drives-new-age-banking-ecosystems/">APIs or Application Programming Interfaces</a> define them as a set of functions and syntax that create applications capable of accessing the data of an operating system, program, or just about any other service.For example, checking your bank balance via a <a class="link" href="https://m2pfintech.com/blog/upi-the-driver-of-economic-growth-and-inclusion/">UPI</a> app is a classic API use in action. In fact, APIs are changing how we interact with the world, and all these actions happen in real-time.Besides, APIs come with a host of benefits in this post-fintech world:<h3 class="heading-node" id="74da" style="text-align: justify">Cost-effectiveness</h3>Decades ago, banks were only used for primitive services like opening and maintaining an account. Withdrawals and deposits dominated back in the day, and other services like investments were relatively rare. Even if they were available, it was a costly affair. But now, with the help of APIs, we have access to a wide range of banking services, right from the comfort of our homes.<h3 class="heading-node" id="854f" style="text-align: justify">Empowers fintech</h3>Earlier banks were quite secretive about their client information. It was a good thing, but it did not give accessibility. But now APIs have opened the floodgates, and many apps and services have come to the fore. The best feature is that the customer will still be able to retain control of their privacy.<h3 class="heading-node" id="f041" style="text-align: justify">Real-time access</h3>Now banking is no more a 9 to 7 activity. It is available to a customer 24/7 and from any part of the world. APIs have achieved real-time money transference with minimal effort. They have also given companies access to a repository of data. It can be used to create highly personalized financial services and enhance the decision capabilities of the business.<blockquote class="block-node" id="ves8dufxd">APIs have propelled Fintech as a “Here-to-stay technology.”</blockquote><img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/int3.webp" alt="M2P Fintech" title="" id="2v436t5s6" width="100%" height="358"><h2 class="heading-node" id="277b" style="text-align: justify">APIs in Fintech</h2><h3 class="heading-node" id="41ac" style="text-align: justify">The world of payments</h3><a class="link" href="https://m2pfintech.com/blog/future-of-payments-processing-matched-with-industry-needs/">Payment processing</a> APIs simplify and expand the payment options for merchants and customers. As we now shop online from any part of the world, merchants can accept payments through various payment methods. It streamlines the checkout process and offers options that a customer can comfortably choose.<h3 class="heading-node" id="cd48" style="text-align: justify">Peer to Peer management</h3>P2P was once a way to let users download files from other users, but now they are a general term in <a class="link" href="https://m2pfintech.com/blog/digital-lending-open-credit-enablement-network/">lending</a> and currency. APIs in P2P not only facilitate transactions, but they also come with significantly lower operational costs. P2P lending also automates the lending process and shortens the time taken for loan approval to disbursal.<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/int4.webp" alt="M2P Fintech" title="" id="l45s7s8a2" width="100%" height="358"><h3 class="heading-node" id="4bfe" style="text-align: justify">Investments</h3>Investments are a platform that is usually available to a select few and is not for the unbanked. But APIs have simplified investments and provided access to many eager investors. They have been instrumental in capturing that hidden pool of customers who were intimidated by lengthy paperwork.<h3 class="heading-node" id="514d" style="text-align: justify">Endless possibilities</h3>The concept of API is fairly new and has a scope for endless possibilities. It has created an open marketplace for collaborative innovation among established financial institutions and upcoming Fintech companies.They have also brought forth a “Sandbox Option”, which gives entrepreneurs or businesses to see their ideas take life without the mandatory regulatory policies. On completion of a successful test run, the concept can be brought to fruition with necessary policies in place.<h2 class="heading-node" id="34ff" style="text-align: justify">What does the future hold?</h2>As detailed above, the APIs are here to stay with fintech focusing on creating ripples in every industry:<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/04/int5.webp" alt="M2P Fintech" title="" id="6ngq1nlt6" width="100%" height="358"><ul class="list-node" id="7tsfddog6"><li>End-users&nbsp;— access to more personalized services and increased transparency</li><li>Developers&nbsp;— Create new areas of code that increase functionality and innovative services</li><li>Entrepreneurs — See their fintech ideas come to life and disrupt many industries</li><li>Banks&nbsp;— Create more revenue streams and expand their customer base</li></ul>In short, APIs have transformed fintech and banks as a platform that offers enhanced user experience with convenience at its core.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

The world of APIs- How they power Fintech?

<img src="https://m2p-website-file.s3.ap-south-1.amazonaws.com/m2p-website-file/marketing-cms/m2p-blog/2022/06/Artboard-1-copy-7-11.webp" alt="M2P Fintech" title="" id="avpoofk1v" width="100%" height="661">Today’s consumers use mobile apps and ecommerce sites for their shopping needs. Right from festive shopping to weekly grocery needs, online is the place to go.In fact, the first online marketplace evolved in the 1990s to buy and sell used goods. And now it has become a necessity, given the current situation. Nevertheless, it paves the way for online fraud as well.Given the right code, anyone can hack and gain access to your card information and relieve you of your funds. So, the question remains: How to make online transactions&nbsp;much safer?Well, fret not! We have got you covered through Virtual Cards.What is a Virtual Card?Virtual cards are <a class="link" href="https://m2pfintech.com/blog/payment-cards-design-made-simple-heres-what-you-need-to-know/">payment cards</a> available only in the digital format. The 16-digit electronic cards come with a custom spending limit and can be instantly issued. They are usually valid for a short period.<blockquote class="block-node" id="qoe6auwbb">The specialty of virtual cards is that your debit or <a class="link" href="https://m2pfintech.com/blog/credit-card-processing-a-definitive-guide/">credit card</a> number or primary account information is not shared with the merchant, thereby shielding you further.</blockquote>In India, virtual cards are limited to eCommerce transactions and can be used only once. However, globally, they are used for online and offline transactions and are available as single-use or multi-use cards.<img src="https://miro.medium.com/max/1400/1*oMH4iJh7mu7R7FfW25U1nw.png" alt="M2P Fintech" title="" width="100%" height="317">Available as a one-time use or as a recurring card<h2 class="heading-node" id="73a2" style="text-align: justify">How do virtual cards work?</h2>In addition to physical cards, banks also issue virtual cards, usually when the customer requests them.A customer who holds a primary account with a bank can apply for any number of virtual cards.To create a virtual card, you need to provide your name, existing debit or credit card number, and card limit. Upon successful OTP verification, you would be shown the cardholder name, virtual card number, expiry date, CVV, and card limit.When you purchase online using the virtual card, PIN and password are sent to your registered email or mobile number. The card will expire as soon as you complete the transaction, and the unused amount will be transferred back to your account.Suppose you haven’t purchased anything within the valid date, the entire amount will be refunded to your account.An extra layer of security and privacy<blockquote class="block-node" id="d0brlx9pn">For every online transaction, a new virtual card number is generated and provided to merchants.</blockquote><img src="https://miro.medium.com/max/1400/1*Kyo4Ll49opChIvJtk7eMRQ.png" alt="M2P Fintech" title="" width="100%" height="317">Even when the fraudsters access the temporary virtual card info, the primary card or the underlying account is not exposed.So, you need not worry about unauthorized charges or a hacker gaining access to your account. Moreover, you can freeze or cancel the virtual card and get your money back.How corporates achieve smarter ops with virtual cards?Melon is a consumer product company that sells trek cycles for adventurers. Meera heads the marketing team, and Krish leads the sales team. It’s no surprise that both the teams use a ton of SaaS subscriptions.It was month-end, and Meera was busy analyzing the marketing budget spends. She suddenly got a call from Rintu, reminding her to reimburse the travel expenses during their H.Q. visit.Another colleague pinged her to pay off the subscription fees. As Meera was quite busy, she shared her card info to them for reimbursement and renewal payment.<img src="https://miro.medium.com/max/1400/1*TeLOCkiZATW4mgqeS6Bq_g.jpeg" alt="M2P Fintech" title="" width="100%" height="317">Offer dynamic spend control and expense categorizationMeanwhile, she noticed that Krish’s teammates were paying their expenses using individual cards. She later learned from Krish that his team has partnered with its bank and a Fintech firm and initiated a virtual card program.<blockquote class="block-node" id="ol4xf6yj5">All team members had their own Digi cards, and Krish controlled the card’s spending limits. From trips to subscriptions, they had cards for each category.</blockquote>Meera thought virtual card as an excellent solution since it gave a 360° understanding of expenses. She discussed it with her team and implemented a new program.What makes virtual cards preferable?These programmable virtual cards offer intact visibility on spending, authorize transactions in real-time, and comes with increased security.Powered by <a class="link" href="https://m2pfintech.com/blog/the-world-of-apis-how-they-power-fintech/">open APIs</a> platforms, they have many defining features that give them an edge over traditional cards.<img src="https://miro.medium.com/max/1400/1*PslqLLEkZHT4K6liBJZo9A.png" alt="M2P Fintech" title="" width="100%" height="317">Virtual card featuresWhat does the future of virtual cards hold?In India, several banks have already collaborated with many fintech partners and have launched many invaluable programs. Globally, virtual cards have also experienced tremendous growth in the past five years and will continue to boom.P.S. For those keen on how virtual cards began, here’s a fun fact —&nbsp;The travel industry was the first to pick up this splendid product. It needed a safe international fund transfer and excellent expense management solution back then.To know more about virtual cards, write to us at business@m2pfintech.com.<a class="link" href="https://m2pfintech.com/newsletter/">Subscribe</a>&nbsp;to our newsletter and get the latest fintech news, views, and insights, directly to your inbox. Follow us on&nbsp;<a class="link" href="https://www.linkedin.com/company/m2pfintech/mycompany/">LinkedIn</a>&nbsp;and&nbsp;<a class="link" href="https://twitter.com/m2pfintech">Twitter</a>&nbsp;for insightful fintech tales curated for curious minds like you.

Tag: "Apis (25)"

M2P Fintech