The silver lining is that even traditional banking/financial services can be digitalized at the back end to cater to old-school customers…

Mathias Faure, Chief Technology Officer, Audax

MF: While fintechs are increasingly disrupting the traditional banking industry, there are advantages to traditional banks maintaining a semi-digitalized approach:

  • Traditional banks have a longstanding reputation for stability, trust, and extensive customer reach — this established presence gives them a competitive edge.
  • Coupled with their deep-rooted regulatory knowledge and experience, which is crucial in navigating the complex regulatory landscape of the financial industry, traditional banks can develop compliant and secure digital services, offering customers the convenience of digital banking without compromises in security.
  • Traditional banks (and traditional services retained by digitalized banks) can yet integrate fintech solutions into their operations, to combine the reliability of their existing infrastructure with the agility and innovation of fintechs.

DigiconAsia thanks Mathias for sharing his professional insights on BaaS.