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The one big difference between technologies of the past and AI now is that AI can ingest unstructured data and produce structured output, so AI Maxis argue that companies need not even build a System of Record to replace SAAS and can run their AI loose on unstructured data created at the edge and AI will produce the same output as SAAS without building an SoR. 

AI offers banks the tantalizing opportunity to cut costs and increase profits by shutting down Pega, Salesforce, Workday, and other SAAS products they currently pay vendors big bucks for, and redevelop similar functionality inhouse by using AI Code Assistants like GitHub Copilot. I call that "SaaS Repatriation".

Last year, when I heard about Drunk Under Lamp Post regulation in UK re. FPS / APP Scam Reimbursement, I predicted that "Banks will thank regulators / PSR for giving them the chance to delay payments and earn float income under the pretense that they're 'carrying out extra due diligence on the authenticity of the payment'". That prediction just came true!

You can either screen all customers subject to sanctions or you can challenge traditional banks but you can't do both.

This is Exhibit A for my long held belief that you can either comply with all the rules that are applicable to traditional banks or you can challenge traditional banks but you can't do both. 

@TasiaVaniuta +1.

Safety of money has indeed become a big question mark in the BaaS model on the back of the Synapse-Evolve fracas, as I pointed out in my blog post titled Bank v. Neobank: Safety Of Money In The Light Of Synapse - Evolve Fracas.

However, while I await their reply to my previous comment, I'm guessing that the author is really talking about Embedded Finance rather than BaaS (assuming they're not talking about Checkout Providers, Merchant Aggregators and Payment Gateways). 

AFAIK, there's no concern regarding safety of money in the case of embedded finance since the End Consumer does not keep any money with the Embedded Finance Provider (unlike BaaS Provider).

For ages, fast growing ecommerce companies have been offering branded checkout, a variety of credit cards, debit cards and BNPL methods of payments by partnering with third party checkout providers (like Bolt), merchant aggregators (like Stripe) and payment gateways (like RazorPay). Can I add another question to your FAQ? "What's the difference between White Label Banking and Checkout Providers, Merchant Aggregators and Payment Gateways?" 

I started selling ERP technology in 1995. 30 years later, I doubt if even half of ERP buyers will declare publicly that they get ROI from ERP. 

Props to FCA. As I pointed out in Bank v. Neobank: Safety Of Money In The Light Of Synapse - Evolve Fracas, many customers don't realize that their deposit in neobanks, BaaS providers and other nonbank fintechs is NOT covered by FSCS / DICGC / FDIC deposit insurance schemes if the nonbank fintech goes bust.   

@GladysEmuaMensah: The original article begins by describing the benefits of remittance business to sender-side banks e.g.

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1. Meeting Customer Needs 

Offering international remittance services helps you meet a vital requirement for millions of consumers who often send money overseas. 

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Your comment seems to pertain to beneficiary side. I have no argument about that. 

But my comment relates to banks on the sender side in Western markets, which is more aligned with the context of the original article.

LOL. At my old CBS company, we used to say something to the effect of "Unraveling the COBOL conundrum is not a task that can be deferred indefinitely" in ca. 2000. 25 years later, 75% of US GDP apparently touches a mainframe at least once a day. I rarely get into crystal ball gazing but, if there's one thing I'm sure enough of to venture a prediction, it's that COBOL systems will be around 25 years from now. While COBOL might impede innovation, that might not be such a bad thing in a regulated industry like financial services where many innovations introduced by fintechs have leveraged regulatory gaps and have been eventually struck down by banking regulators. Besides, banks have not been held back by their COBOL systems from launching Online Banking, Mobile Banking, Cobranded Credit Card, Remote RDC, A2A RTP, HFT, and other kosher innovations.