Luvleen Sidhu is the CEO and Chairman of BM Technologies, a public company that has built a digital banking platform for niche markets and a unique banking-as-a-service business
Banking-as-a-Service (BaaS) has become quite popular these days with dozens of banks offering different services to fintechs and tech companies. But almost all these banks were not originally conceived this way, they are adding BaaS as a new product offering.
It has been said many times in the past couple of years: “in the future, every company will be a fintech”. But what does that really mean and how do we get there?
Embedded finance is a relatively new term in fintech but it is getting set to revolutionize finance. Today it is quite easy to add finance functionality either within a financial or non-financial firm. And we are beginning to see large brands embrace financial services as a way to increase engagement with their customers. I think this is a trend that is unstoppable.
Many community banks have been having a difficult time in recent years as banking becomes ever more intertwined with technology. They don’t have big budgets to spend on tech but more importantly many leaders of community banks don’t have a technology-first mindset.