In BaaS, individual banking functions are detached (unbundling) and made available to third parties. The users include FinTechs and other banks as well as other branches/subsidiaries of the bank itself.
With Open Banking, a subset of XaaS has emerged: Banking-as-a-Service(BAAS). BaaS describes the shift from banking services originally offered exclusively by established banks to platforms and apps that facilitate APIs for banking functions. This allows banks and FinTechs to expand their product portfolio, increase their service quality and position themselves accordingly in the market. At the same time, BaaS allows the providers of the Software to license their services and/or allow third parties to use their platform.
An extreme form of BaaS are so-called bank-in-a-box solutions. Here, both the BaaS software and the necessary infrastructure and licenses are provided in bundled form. In this way, FinTechs can go to market in a short time (an example of this is the cooperation between Solarisbank and the sustainable Neo-Bank Tomorrow) In addition, with the help of BaaS and Bank-in-a-Box solutions, banks can quickly complete the transformation from analog traditional bank to multi-jurisdiction capable digital bank.