📺 Today’s Episode: FaaS Finance-as-a-Service (FaaS)

Welcome to FinTech Bank Talks! I’m Jose Puccini, and today we’re diving into one of the most disruptive trends in financial technology: Finance-as-a-Service, or FaaS. Banks are no longer the gatekeepers of finance—APIs, embedded solutions, and fintech innovation are reshaping the landscape. Is traditional banking becoming obsolete? Let’s find out!"

PART 1: WHAT IS FINANCE-AS-A-SERVICE (FaaS)?
Finance-as-a-Service (FaaS) isn’t just a trend; it’s a revolution. It allows non-financial companies to offer banking services without being banks. How? Through APIs and integrated solutions. Imagine retail companies, SaaS providers, e-commerce, and even tech startups offering payments, loans, or insurance without traditional banks.
Example: Amazon is already providing financing to sellers without going through a bank. Shopify, with Shopify Capital, offers loans to its merchants. The result? Less reliance on traditional banks and more opportunities for businesses.

PART 2: THE COLLAPSE OF THE TRADITIONAL BANKING MODEL
Banks have dominated the financial industry for centuries, but their monopoly is collapsing. Why?

1. Lack of innovation – While banks stick to archaic processes, fintechs are building faster, more efficient solutions.
2. Strict regulations – Banks are tied to regulatory frameworks that fintechs and FaaS platforms can bypass with specific licenses.
3. User experience – Consumers prefer seamless, integrated services without the friction of traditional banks.
   50% of financial services users already prefer fintech solutions over traditional banks. By 2025, 70% of online financial transactions are expected to take place through non-bank platforms.

PART 3: FaaS IN ACTION – EXAMPLES THAT ARE CHANGING THE GAME
Some companies are revolutionizing the market with FaaS:

• Stripe Treasury – Enables businesses to offer banking services without being banks.
• Adyen Banking-as-a-Service – Provides embedded accounts and payments for any company.
• Railsr (formerly Railsbank) – Turns any company into a financial services provider.
• Apple and its Apple Card – Doesn’t require a traditional bank to operate, redefining consumer banking.
  This model allows any company to become a bank without being one, removing intermediaries and reducing operational costs.

PART 4: WHAT DOES THIS MEAN FOR BANKS?
If banks don’t adapt, they could become mere infrastructure providers rather than dominant institutions. Some strategies they can adopt to survive:

• Become FaaS platforms and offer their own banking services to third parties.
• Partner with fintechs instead of competing with them.
• Invest in personalized digital experiences to retain customer loyalty.
  The future of banking isn’t in branches; it’s in integration with other services.

CONCLUSION: THE FUTURE IS FINTECH-DRIVEN
Finance-as-a-Service is redefining the rules of the game. Banking disintermediation isn’t a prediction; it’s a reality unfolding. By 2025, the question will no longer be whether companies should integrate financial services, but who is doing it better and faster.

• Is this the end of traditional banking?
• Will fintechs completely dominate the financial sector?
  Let me know your thoughts on LinkedIn, and let’s continue this conversation. This was FinTech Bank Talks ( Top european Pod - Spotify) with Jose Puccini. Until next time.