Understanding the differences between Open Banking and Banking as a Service(BaaS)
Open banking and Banking as a Service (BaaS) are both concepts that involve the use of technology to provide financial services, but they are distinct in their approach and implementation.
Open banking refers to the use of open APIs that allow third-party developers to access financial data and services from banks. This allows for the development of new financial products and services that can be integrated with a user's existing banking accounts.
Banking as a Service, on the other hand, is a model where a third-party provider offers banking services such as payments, lending, and compliance to other companies. BaaS provider can be a non-banking entity or a traditional bank that offers their services to other businesses through APIs.
In summary, open banking is about opening up bank data and services to third-party developers, while BaaS is about providing banking services to other businesses through APIs.
