Banking as a Service

Welcome to the next era in financial services – Embedded Finance.
EMBank can enable you to offer embedded financial services.

 

Why Choose EMBank for Banking as a Service?

EMBank was established at the advent of open regulatory standards. We were determined to pursue our enthusiasm for developing a platform that would enable you and your customers to access financial services via a Banking as a Service model. Create accounts, make payments, and get bank account information services straight from your existing offerings and products with our API-driven Embedded Finance platform. To make it even better, fintechs can also provide our payment and banking services to their customers. Our vision of embedded finance is all about helping fintechs bring their business models into action swiftly and smoothly.

We allow and assist major financial institutions, corporations, and FinTech entrepreneurs to bring to market highly unique payment services backed by a solid, immediate business value and strategy.

APMs

Alternative Payment Methods (APMs) are ways of making payments beyond the traditional schemes such as Visa and MasterCard.

Across European Union, there are plenty of popular local payment methods such as Ideal, Sofort, P24, and others that can support your payment needs.

KYC & AML

In today’s regulated banking environment, compliance is one of our highest priorities.

EMBank keeps strict adherence to all directives, regulations, and their highest standards on all levels of due diligence.

Payments

EMBank offers a variety of instruments and access to a range of payment networks such as SWIFT, TARGET2 and SEPA.

Connect to us via our single API Embedded Finance solution.

Our API-Driven Embedded Finance Platform

EMBank was born in the dawn of the open banking directives. This predestined our passion for building a platform that can deliver a Banking-as-a-Service solution and unlock banking to you and your clients.

Our API-driven Embedded Finance platform can enable you to create bank accounts, initiate payments, and get bank account information services directly embedded into your current offers and products.

Banking as a Service Benefits

BaaS benefits for financial companies

BaaS’s core value is derived from its one-of-a-kind digital nature. Financial operations are inextricably linked to every business, and streamlining the process may result in significant benefits for all parties involved. Brands that include embedded finance into their platforms increase customer loyalty while also earning additional income from the sale of these complimentary financial products. In addition, they are saving money on the infrastructure costs associated with providing conventional banking services.

In the financial services industry, the adoption of BaaS will have substantial advantages for businesses that need banking services. Fintechs that specialize in finance, such as electronic money institutions and payment service providers, may be able to substantially decrease their costs, both in terms of money and time, by collaborating with BaaS platforms. Collaboration with BaaS platforms enables financial institutions to eliminate bureaucracy and outmoded, complex procedures, thus ushering in an entirely new age in the financial services industry.

BaaS systems, in their most basic form, provide financial institutions with banking services that they may then offer to their end customers. Financial fintechs can provide banking services and transactional activities more readily because of the infrastructure offered by BaaS.

Finally, because of the two-way flow of data inside the system, financial institutions may be able to get new insights into their customers’ buying and investing habits.

By partnering with BaaS platforms, financial institutions may reduce their expenses significantly. Both sides benefit from these types of collaborations. Furthermore, through collaboration with BaaS platforms, financial enterprises can reduce bureaucracy and outdated complicated processes, ushering in a new era of the customer-centric banking system. BaaS platforms provide insights gained through data analysis, artificial intelligence, machine learning, and other methods of AI technology. Lastly, financial institutions may get fresh insights into their clients’ purchasing and investing behaviors because of the two-way flow of data inside the system, while staying in line with the highest standards of Data Protection requirements.

BaaS benefits for non-financial companies

Licensed banks and non-financial companies are increasingly integrating their digital banking services directly into their products for the end customer, which is known as banking-as-a-service.

The provision of digital banking services (including current accounts, debit cards, and mobile payment services) by non-financial businesses is now permitted without the need for a special banking licence. Consumer loans may be offered by a used vehicle business on its own via the usage of BaaS infrastructure, for example. It is advantageous to both the business and the customer since most of the banking bureaucracy is avoided.

Additional benefits of innovation may include the settlement of legacy issues and the creation of a more competitive position in the current market. User-onboarding processes that are more convenient, compliant, and secure are made possible through BaaS platforms, which enable infrastructures that respond to changing consumer requirements. This allows different companies to remain convenient, compliant, and safe while providing a seamless experience for their customers.

Embedded Finance

Our single API Banking-as-a-Service (BaaS) solution will enable you to integrate to us, and consume all our services seamlessly.

Not only will you be able to embed all our payment and banking services into your own service, but you will also be enabled to provide such services to your clients as well. This is truly what Embedded Finance is all about.

Get in touch to learn more about our Embedded Finance solution.

Banking as a Service Use Cases

Neobanks

Recently, the financial world has seen a significant increase in the number of technologically advanced financial institutions. Neobanks is one such popular newcomer. Neobanks are digital banks that solely function online, using artificial intelligence, machine learning technology, and application programming interfaces (APIs). Neobanks need to collaborate with a licensed Banking as a Service provider in order to offer digital services ranging from establishing bank accounts to making money transfers and bill payments around the clock.

Retail Fintechs

Fintech companies have a one-of-a-kind chance to execute their financial solutions in a short period, on a small budget, and without the need for a banking license. The Banking as a Service (BaaS) layer facilitates the required two-way data exchange between financial institutions and their end clients.

Commercial Fintechs

Finance-technology companies (Fintechs) are an essential component of the Commercial Banking value chain. Business clients desire and need the ability to manage corporate cash flows, which includes making payments, receiving payments, getting information, investing money, and borrowing funds, among other things. All these services can be managed by commercial fintechs using Banking as a Service APIs.

Frequently Asked Questions

What is Banking as a Service (BaaS)?

Banking as a Service is a system that lets businesses offer banking services to their clients. Companies can now provide payment services and loans by implementing digital banking into their services using APIs. Other services include credit cards, debit cards, and mobile bank accounts.

How does Banking as a Service (BaaS) work?

To access the BaaS platform, a digital bank, fintech, or other third-party providers (TPP) or non-banks pay a fee to a BaaS provider, like EMBank. We then make our APIs available to the non-bank business, granting them access to our systems and the information required to provide their own label of banking services or develop new banking products.

 

Why is BaaS a fast-growing trend?

Traditional banking services can be obsolete and expensive to operate. So, what can banks do to enhance their business model and position themselves for growth? Financial and non-financial organizations will be able to go beyond their core banking products, develop new services, and deliver more customized experiences to their clients if they can overcome outmoded legacy attitudes and embrace Banking as a Service. As banking entered a new age in which financial services are more integrated into clients’ everyday lives, cooperation will be essential to success. BaaS provides new possibilities for data collection by leveraging ecosystems.

Banking as a Service VS Open Banking

Open banking is similar to BaaS in that it allows non-bank businesses to lease banking services. Nevertheless, two distinct models were created for specific reasons. While BaaS enables businesses to provide pure banking products via their interface, open banking allows businesses to access their customers’ data (with their permission) without transferring banking operations.

Open banking is about data accessibility and is different from Banking as a Service (BaaS). Nonetheless, TPPs may use BaaS models, in addition to open banking APIs, to incorporate banking services into their own products.

What is Platform Banking?

In Platform Banking, the bank owns the client and incorporates fintech services under the platform banking paradigm. Conversely, the BaaS concept involves the fintech/non-bank owning the client and integrating bank services. By incorporating fintechs’ services into their platform, businesses can retain their clients, even if it means ceding the lion’s share of income to the fintech.

What is Open Banking?

Open Banking entails connecting banks via APIs to third-party providers (TPP) and other banks, who then use data accessed via APIs to develop their own products. Open banking is a component of the concept of open innovation. It is a natural consequence of technological advancements and shifting views about user data ownership.

What Is Embedded Banking?

Embedded banking is the integration of financial services within a third party platform or system via APIs. Through embedded banking, non-financial companies can greatly enhance their capabilities by offering user-friendly finance services such as cashless payment, embedded lending and buy now, pay later (BNPL) programs. Embedded Banking entails a range of financial services such as embedded payments, embedded lending, embedded insurance, embedded investments, embedded card payments, etc.

What are Embedded Payments?

Embedded payments refer to the injection of transactional functions into a non-financial system. The infrastructure enables non-financial companies to conduct transactional services with ease. From the customers’ perspective, paying with cash causes bodily discomfort. In certain instances, the discomfort may be enough to cause someone to rethink making a purchase. Customers benefit from embedded payments since they make the process of purchasing almost painless. Instead of having to rummage through their wallet for cash or locate their credit card, a customer utilising an app with an integrated payment infrastructure simply clicks a few buttons.

What is Embedded Lending?

Embedded lending, also known as Embedded Credit, replaces the traditional lending process with a much faster and user-friendly method. It removes the need for a bank to apply for a loan and enables the company to offer lending options in its own system. Embedded lending allows customers to request and receive a loan at the moment of purchase.

What are Embedded Card Payments?

Embedded card payments emerge as an alternative way of payment through debit or credit cards. It allows businesses to issue their own branded cards. The users can apply and receive the branded card, transfer funds onto the card and use the total amount held on the card. Issuing a branded card helps the company increase customer loyalty by enhancing its promotional and transactional capabilities.