Fintech
Companies that aim to improve, streamline, digitize, or transform traditional financial services using software and technology.
Technology and finance are giving startups and service providers the ability to offer streamlined financial products and services that were previously only available through highly regulated, traditional financial institutions. FinTech startups are poised to revolutionize the banking sector and outpace traditional banks: Companies that seek to improve and automate the delivery and use of financial services by expanding financial inclusion and leveraging technology to reduce operating costs.
Digital bank
Online-only financial institutions that resemble banks. A neobank's offerings are usually limited compared to traditional banks - sometimes there is nothing more than a basic checking and savings account. Thanks to the slimmed-down model, neobank customers often enjoy lower fees and higher-than-average interest rates.
From a customer's perspective, a Neobank may be nothing more than an app that lets you manage your money and make decisions.
Fintech companies that offer apps, software and other technologies to streamline mobile and online banking. These fintechs usually specialize in specific financial products like checking and savings accounts. They also tend to be more flexible and transparent than their big-bank counterparts, although many of them partner with those institutions to underwrite their financial products.
The big banks have recognized the demand for neobanking products and have started to introduce similar offerings in order to compete.
Banking as a service
End-to-end process that ensures the comprehensive delivery of a financial service, delivered on-demand via the Internet and managed within a specified timeframe.
The underlying infrastructure-as-a-service is provided by a "traditional" licensed and regulated bank.
This bank-as-a-service is joined by decomposed banking services and an ecosystem of fintech startups and service providers.
But dynamic developments in the FinTech world have made this model obsolete. The reason: tech companies like Solaris provide the middleware of bank-as-a-service, but at the same time hold a license to operate as a regulated bank. This means they no longer need the foundation of a traditional bank.
Banking as a platform
Allows third-party developers to build products and services for bank customers. Developers can extend platform functionality using APIs, while the platform itself manages data exchange and monitors authentication and compliance.
It's a potentially groundbreaking concept that provides a universal technical interface to connect banks' core banking systems and banking apps from a vast ecosystem of FinTech companies.
Provides a universal technical interface that connects to a bank's core banking systems and allows software developers to create various service apps. The idea is to enable third-party developers to create a wide range of useful and secure applications that offer users tangible benefits compared to traditional online or mobile banking systems.