cxo voice
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security
No Result
View All Result
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security
No Result
View All Result
Interviews, IT and Technology News India | CXO VOICE
No Result
View All Result
Home News Banking

Lending-as-a-Service – Opening New Avenues for Banks

Ritesh Varma by Ritesh Varma
October 16, 2020
Reading Time: 3 mins read
Lending-as-a-Service – Opening New Avenues for Banks

File Photo: Ritesh Varma

Share on FacebookShare on TwitterShare on LinkedinShare via E-Mail

According to Market Force, in 2018 nearly 25% of account holders visited a branch to open a new deposit account while only 19% visited to apply for a loan. Tech-savvy customers are adopting digital banking methods and like to bank from the comfort of their homes rather than visiting a bank’s branch. The changing customer expectations and market dynamics require banks to shift from a brick-and-mortar model and offer banking-as-a-service (BaaS) solutions and models. BaaS allows third parties and fintech to connect with a bank’s systems via APIs and offer personalized offerings to customers. 

To start with, banks can explore the lending-as-a-service (LaaS) space, given the rising competition from financial technology (fintech) companies that offers the best in class experience through the latest technologies. 

How Lending-as-a-Service Works?

lending-as-a-service (LaaS) is a sub-category of banking-as-a-service (BaaS). Let us see the way it functions. 

Consider a customer looking for a car on a car aggregator website. The aggregator provides a holistic, integrated experience to the customer by getting quotes from its partner banks and offers a customized loan. This way, a non-banking entity, in this case, the car aggregator, can offer their customers digital banking services without having to deal with banking regulations.

By opting for a lending-as-a-service (LaaS) model, banks can gain the speed of a fintech and offer a superior experience to their customers. Also, banks benefit from the fact that they onboard new customers while saving on manpower costs and reducing credit risks. 

What Banks Stand to Gain?

The adoption of lending-as-a-service will provide banks with notable benefits such as:

  • Legacy banks can establish a relationship with fintech companies and become their partners rather than competitors
  • A new stream of revenue as banks can offer third-party fintech services to their existing customers through digital channels and even earn new customers
  • Significant cost savings through seamless integration with banks’ existing infrastructure 
  • Integration with an existing legacy backend core banking infrastructure to enable faster time-to-market and leverage existing IT investment
  • Better customer retention by delivering superior experiences as banking and payments services are tailored to customers’ needs

lending-as-a-service, A Win-Win Situation!

Lending-as-a-service is a win-win situation for all the stakeholders – financial institutions, their customers, and partners. To stay ahead in the competitive landscape, banks must provide innovative solutions that can be tailored based on customers’ needs. LaaS allows banks to offer personalized services to their customers by efficiently collaborating with external vendors while leveraging the best-in-class technology. 


The Future of Payments is Digital

AI, Blockchain and IOT Together To Bring Real Value to Organizations

XDR to Transform Enterprise Threat Detection & Response

Tags: BankingBanking and Financial IndustryBanking SolutionsLendingLending-as-a-ServiceLoans
Ritesh Varma

Ritesh Varma

Ritesh Varma is Global Head - Presales, Business Solutioning and Disruptive Consulting at Newgen Software

Related Posts

Banking

Ashish Sapra has been Appointed as CEO of TVS Credit

August 19, 2022
Banking

Centrum, AWR Lloyd Join Hands to Offer Infra I-Banking Services

August 19, 2022
Banking

L&T Financial Services Inaugurates Digital Sakhi Project in Karnataka

August 19, 2022
Banking

IDFC FIRST Bank Partners LetsVenture to Support Startups

August 19, 2022
Banking

Max Financial Services Q1FY23 Consolidated Revenue Rises 17 percent, with a 91 percent Profit after Tax

August 19, 2022
Banking

OctaFX Announces Visual Rebranding, Adopts Space-inspired Design System

August 19, 2022
Banking

SATYA MicroCapital Acquires the Feat of Rs. 3000 Crores Loan Outstanding Portfolio

August 19, 2022
AI In The Banking And Financial
AI

10 Benefits of AI In The Banking And Financial Sector

March 21, 2022
Load More
Next Post
Working in a post-pandemic world: What is the new normal?

Working in a post-pandemic world: What is the new normal?

Discussion about this post

ADVERTISEMENT

Expert Views

Sundar Balasubramanian, The Dawn of a New (Ransomware) Age
Cyber Security

The Dawn of a New (Ransomware) Age

August 19, 2022
AI Cloud Enterprises
AI

What can AI Cloud do for Enterprises?

March 9, 2022
Data Modernisation
Technology

4 Key Trends Driving Data Modernization Across The Enterprises

January 28, 2022
IT Service Management (ITSM)
Enterprise

The need of ITSM to start a digital transformation journey and ensure high ROI

January 17, 2022
Cloud Adoption
Cloud

Cloud Adoption Needs to Be Accelerated

January 12, 2022

Get Latest Update

Subscribe to our mailing list to receives newsletter direct to your inbox!

ADVERTISEMENT

Leaders Inerviews

Enterprises, and MSMEs IoT
Leaders Talk

IoT is now seen as an essential enabler for the enterprises to be future ready : Joyjeet Bose

-
Security While Working Remotely interview with Filip Coftas
Cyber Security

Security While Working Remotely [Interview]

-
Akita Security Device Help you Protect your Security During COVID-19 [Interview with Zakir Hussain]
COVID-19

Can Akita Security Device Help you Protect your Security During COVID-19 [Interview]

-
digital transformation and customer experience Newgen software
Interview

Digital Transformation Journey helps Newgen Software Improve Customer Experience [Interview]

-

Entrepreneur

Inspiring Women Entrepreneurs in India (2022)

Technology Adoption For Entrepreneurs

Volunteering management is the need of the Hour

Significance Of Ethical Entrepreneurship In The Post COVID-19 Economy

CXO VOICE is a premier resource for the enterprises, SMBs and Startups CXOs and business leaders, It enables CXOs and business executives gain access key insights, experts views, analysis, business strategy, and leaders interviews on what’s happening in the market and its impact.

Connect with us

Easy Links

  • Cryptocurrency
  • Event
  • Blockchain
  • Press Release
  • Resources & Downloads

Write Us

contact@cxovoice.com

Newsletter

Subscribe to our mailing list to receives newsletter direct to your inbox!

  • Home
  • About
  • Contact Us
  • Advertise
  • Privacy & Policy
  • Feedback

© 2021 CXO VOICE

No Result
View All Result
  • Home
  • News
  • Expert Opinion
  • Leaders Talk
  • Cyber Security

© 2021 CXO VOICE

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/