Financial technology firm FIS unveiled its Banking-as-a-Service (BaaS) hub Tuesday (April 12), a tool the company said provides “a full suite of banking and payments capabilities for institutions of all sizes.”
As FIS said in a press release, the hub enables functions that give banks, FinTechs and corporations in any industry the ability “to rapidly configure new financial services offerings.” Delivering banking and payments products in an “as-a-service” fashion lets these institutions test rapid innovation with a low-risk “pay-as-you-grow” model.
In addition, the hub allows for “as-a-service” features for customers including accounts, cards and money movement. FIS said customers can leverage the services as packages, beginning with Deposit Banking, Financial Wellness and Move Money, with more to come.
“The FIS BaaS Hub levels the playing field between big and small financial institutions by providing all consumers with unbundled FIS and fintech solutions that can be easily embedded into any digital channel,” said Rob Lee, president, FIS Impact Ventures at FIS. “The Hub was created to be a gateway to innovation and a bridge to better partnerships between banks, retailers, and fintechs.”
The company said the BaaS market is projected to top $25 billion by 2026, with the embedded finance FinTech segments expected to reach $230 billion in new revenue volume by 2025. FIS also said it plans to debut new features and capabilities to the Hub in the future that will serve this market.
The hub’s launch comes one week after FIS announced that its Worldpay business will be the first global merchant acquirer to allow merchants to receive settlements in USD Coin (USDC).
See also: FIS, Circle Team Up to Offer USDC Acceptance
FIS made that happen through a partnership with Circle, the sole issuer of USDC, allowing crypto-native and traditional businesses to build settlement and treasury strategies that adhere to their preferred currency for doing business.
“Companies will no longer be constrained by payment service providers offering a fiat-only ecosystem and can instead leverage an innovative adoption of crypto payment rails to directly receive, hold, and transfer stablecoins in a fast and efficient manner,” FIS said at the time. “Crypto.com, the world’s fastest-growing cryptocurrency platform, will act as a pilot customer for the USDC settlement proposition offered by Worldpay.”
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