The news: Deloitte and Amazon Web Services (AWS) teamed up to provide cloud-based digital banking services, per a press release.
Cloud-based BaaS: The multiyear partnership will yield a banking as a service (BaaS) platform that helps organizations offer customized digital banking services.
- AWS will build cloud-computing capabilities on top of Deloitte’s ConvergePROSPERITY BankingSuite platform.
- Together, the tech can deliver more personalized customer experiences, modernize legacy banking infrastructure, and bring new products and services to market faster. Organizations can create a product or service that meets their needs and then deliver it to customers via a mobile app.
- Platform users can also access other Amazon products—like Amazon Connect to create a call center, Amazon Cognito for customer security, and Amazon Pinpoint for client-relationship management.
BaaS bonanza: We estimate that BaaS revenues will nearly triple from $2.3 billion in 2022 to $5.8 billion in 2026, per our forecasts. Starting out as a way for smaller banks to compete in a rapidly changing banking environment, BaaS now attracts big-name financial institutions that are trying to get a piece of the pie.
- Amsterdam-based payments fintech Adyen launched a BaaS platform late last month that offers checking accounts and small-business loans with its US and EU banking licenses.
- UK incumbent NatWest partnered with Polish tech provider Vodeno to offer cloud-based products like payments, deposits, and point-of-sale credit.
- PwC Banking and Capital Markets partnered with Finxact on cloud-based core banking services.