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Home Business The Banking-as-a-Service bubble is about to burst – and fintechs will feel the effects

The Banking-as-a-Service bubble is about to burst – and fintechs will feel the effects

by News Room
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This regulatory crackdown is going to have a huge impact on the fintech ecosystem. Whether it is positive or negative, however, depends on a company’s stage of scale. For later-stage, established fintechs, it is prompting a flight to safety. They are utilising capital to move away from the BaaS service model and take proprietary control of their own stack, building everything they had previously outsourced themselves, from direct scheme connectivity to partnerships with Tier 1 banks. Although an initial expense and effort, having autonomy over their own financial infrastructure and technology will be more convenient, economical and safer in the long run.

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