Banking-as-a-service solutions have been on the market for a while now – acting as much needed intermediaries between banks and fintech companies. They are playing an important role in the digital transformation of banks, initiating beneficiary partnerships between the players. In addition, through this end-to-end process, banks are shifting towards a more modular way of working in order to embrace third-party collaborations, while fintechs are able to execute financial service capabilities without the need of developing expensive services themselves.
We are all familiar with the Software-as-a-Service (SaaS) distribution model in which a third-party supplier hosts our application, making our life easier by providing:
- Easily scalable
- Automatic updates
- Easy accessibility
- Quick setup and deployment
- Continuous support
- Easy payment terms
In the last few years, a similar structure has come of age for banking solutions in the fintech industry. Banking-as-a-Service (BaaS) allows companies to integrate digital payments and a variety of banking solutions ranging from basic compliance solutions to more specialized products without the need for burgeoning fintechs having to develop each piece of the puzzle, ensuring:
- Security – operate within a legal framework
- Scalability – cloud-based solutions
- Fast integration – quicker deployment
- Highly specialized solutions for financial services
Cledara’s core business
Have you ever wondered if there is an app for managing all your SaaS subscriptions in one place? You are probably familiar with the feeling of finding yourself in the need of changing invoice data, downloading invoices themselves, and you have no idea who is your organization is managing or paying for subscriptions?
Cledara identified this market niche back in 2018 and with the support of skilled Vacuumlabs developers, they built a full-production web app in just 7 weeks. Since then, they have been helping many companies with their product which includes several life-saving features, like software stack tracking, payment authorization and predictions, integrated invoice handling options, and virtual card payments.
The power of virtual cards
Adding virtual card payments into your accounts payable workflow is one way to help your business handle invoices more efficiently. Therefore, Cledara implemented virtual cards in its system utilizing the huge range of benefits of this BaaS solution. But how can virtual cards simplify your SaaS management on the platform?
- It helps you empower your team without losing control – payment limits can be set
- Creating the virtual card takes just a few minutes – a simplified pathway to ePayments, quick onboarding
- Reporting gets easier – all spending is visible on one platform
- Real-time visibility – immediate actions can be taken to prevent overspending
BaaS integration as a boost
BaaS platforms enable fintechs to connect with banks’ systems via APIs, allowing them to offer branded banking solutions directly to their customers. It is a win-win-win situation. It helps the bank to build partnerships, provides a secure service to the customer, and last but not least, allows the fintech company to build revolutionary solutions as fast as possible. In other words, the bank is responsible for risk management and compliance with regulations while the fintech company can focus on the user experience and agile development.