125 In order to succeed in retail banking, financial services providers need four key capabilities to work with distributors and enablers to monetise BaaS. From a technology perspective, these include: an open application programming interface platform, an integrated data and analytics platform, and specialised digital solutions to seamlessly integrate customer journeys. From a product perspective, providers also need dynamic and compelling offerings to entice customers. To monetise BaaS in the SME and corporate segments, providers need to develop sectorspecific products and services. For instance, working capital loan requirements and terms are different for restaurants and small retailers, and should be customised accordingly. They will also need a data and analytics platform and specialised digital solutions. It is clear that the BaaS monetisation strategies of banks and distributor brands are becoming increasingly aligned. Both recognise the need to offer specialised products, white-label customer journeys, and to provide access to a marketplace. Finastra’s research also shows that while distributors and providers are ahead in terms of their BaaS maturity today, enablers are playing an increasingly important role in the ecosystem. They will continue to be central to easing the integration process by connecting providers to distributors and effectively bringing the different sides of the network together in an open finance ecosystem. Financial institutions can accelerate their participation in BaaS by working with enablers to facilitate the integration process. The barriers to entry are coming down and BaaS is gaining an unstoppable momentum. The time to act is now. Angus Ross is the chief revenue officer of banking-as-a-service at Finastra F I NANC I A L S E R V I C E S
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