41% of Banks Offer Embedded Finance Solutions, Have FinTechs to Thank - PYMNTS

41% of Banks Offer Embedded Finance Solutions, Have FinTechs to Thank

In today’s financial services arena, embedded finance and banking-as-a-service (BaaS) have emerged as transformative forces, redefining the way banks and financial institutions (FIs) engage with consumers and businesses. At the core of this shift is the use of application programming interfaces (APIs), which enable smooth financial transactions through digital platforms.

A recent PYMNTS Intelligence report, “Embedded Finance and BaaS: From Marketing Buzz to Banking Bedrock,” in collaboration with NCR Voyix, reveals traditional institutions must now make a critical choice: adapt to these advancements to remain relevant or risk being surpassed by more nimble competitors.

 

[요약]

  - 은행 산업에서 embedded finance, BaaS는 필수가 되어가고 있음

  - API 도입을 통해 금융거래가 효율화되면서 가능해졌고, AI 시대에 더욱 가속화될 것으로 전망

  - 그러나 내부 전략, 관련 규제, 정보보안 이슈라는 허들이 존재

  - 핀테크사와의 파트너십은 은행 및 금융기관의 디지털 중심 혁신에 필수적 요소

 

[생각]

  - API라는 송수신 수단이 현재로써 가장 효율적인 방식이구나 싶은 생각

  - 국내에서는 아직은 빈번하지 않은 것 같은데 어떻게 기존에 없는 방식이 새롭게 시도될 수 있었을지 궁금

  - 규제가 혁신에 발목을 잡는 듯 하지만 티메프 사태를 보면 돈이 오가는 곳이 너무 자유로워도 안될 것 같은 느낌

 

[추후 생각해볼 이슈]

  - API의 어떤 점이 효율성을 극대화 시키는지, 그리고 어떤 방식이 새롭게 대두되고 있는지

  - 해외의 embedded finance, BaaS 적용 사례

 

(참고) Evolution of Communication and Integration Methods - ChatGPT

1. Early Methods:
   • File Transfers (FTP, SFTP, etc.): One of the earliest methods for data exchange between systems was transferring files (e.g., CSV, XML) between servers. While still used today, this method can be slow and is not ideal for real-time data exchange.
   • Direct Database Access: Another early approach involved giving systems direct access to a shared database. This method is efficient in some cases but can lead to security and data consistency issues, especially in distributed environments.
2. Middleware:
   • Enterprise Service Bus (ESB): ESBs were introduced as a way to connect disparate systems within an enterprise. They act as a central hub for integrating applications but can become complex and difficult to manage over time.
   • Message Queues (MQ): Technologies like RabbitMQ or Apache Kafka allow for asynchronous communication between systems, enabling reliable and scalable message passing, but they are generally more complex to implement.
3. APIs:
   • APIs (REST, SOAP, GraphQL): APIs have become the preferred method for integrating systems, particularly in web and mobile applications. They offer a standardized way for systems to communicate in real-time and are easier to scale and secure compared to older methods.
   • Microservices Architecture: APIs play a crucial role in microservices, where applications are broken down into smaller, independent services that communicate via APIs.
4. Recent and Emerging Technologies:
   • Webhooks: These are HTTP callbacks that allow one system to send real-time data to another system. While similar to APIs, webhooks push data rather than requiring it to be pulled.
   • Serverless Functions and Event-Driven Architectures: These allow systems to react to events (e.g., data changes) in real-time without requiring a dedicated server or always-on service. These often use APIs under the hood but represent a more modern approach to integration.
   • GraphQL: A more recent API technology that allows clients to request exactly the data they need, making it more efficient and flexible than traditional REST APIs in some cases.

Why APIs Are So Prevalent Today

• Standardization: APIs, particularly REST and GraphQL, have become standardized across industries, making them easy to implement and understand.
• Real-Time Communication: APIs enable real-time or near-real-time communication between systems, which is essential for modern applications.
• Ecosystem Growth: The rise of APIs has enabled the growth of ecosystems where third-party developers can build on top of existing platforms, driving innovation.