Banking ROE projected to fall below 7.2% by 2030

The global banking sector faces mounting pressure as Return on Equity (ROE) continues to decline. Incumbent banks and financial institutions (FIs) must act urgently to modernise and compete with agile digital challengers. This eBook provides actionable strategies for banks and FIs to address the ROE challenge by leveraging open finance solutions, including Banking-as-a-Service (BaaS), digital banking, and the modernisation of incumbent infrastructure to unlock new revenue streams and drive innovation. Key Highlights:

• ROE Insights: Understand global and regional trends driving profitability challenges.
• Strategic Growth Solutions: Leverage BaaS and digital banking to enhance customer experiences and grow ecosystems.
• Modernisation Pathways: Explore incremental, low-risk approaches like dual-mode evolution to transform infrastructure without costly rip-and-replace models.
• Real-World Results: Learn from case studies like Standard Chartered’s partnership with all-commerce platform Bukalapak in Indonesia, showcasing how ecosystem partnerships deliver measurable success.

Designed for leaders in incumbent banks and FIs, this eBook, c0-authored by audax, Synpulse and AWS, offers a roadmap to thrive in a digital-first, customer-centric future.

The Strategic Imperative of BaaS

Banking-as-a-Service (BaaS) is poised to revolutionise the financial sector, projected to grow from $11 billion in 2022 to over $38 billion by 2027. This whitepaper explores how BaaS enables banks and financial institutions (FIs) to expand their customer base and introduce innovative financial products at lower costs, improving returns on equity and opening new revenue streams.

Despite its promising future, BaaS adoption faces significant challenges, including regulatory compliance and operational readiness. Strategic partnerships with fintech companies are crucial for banks and FIs looking to overcome these obstacles and accelerate their market entry. From this whitepaper, you will gain actionable insights into navigating the complexities of BaaS, benefiting from proven strategies and case studies to successfully implement and leverage BaaS in your own organisation.

A $25 billion opportunity!

Banking-as-a-Service (BaaS) is revolutionising the financial services sector, reshaping how banks deliver financial products and services to consumers and businesses.

This whitepaper is specifically designed for incumbent banks considering BaaS. With BaaS as a business model, banks can partner non-bank entities and integrate banking capabilities, enabling these non-bank entities to offer financial services to their customers without the need to obtain a banking license or build their own banking infrastructure. This presents significant market opportunities to the entire ecosystem.

By 2026, Forbes reports that Embedded Finance is projected to reach USD7 trillion in transaction value and BaaS could evolve into a USD$25 billion opportunity for banks, underscoring its pivotal role in the ever-evolving financial landscape. This paper examines the key drivers fuelling the growth of BaaS, its impact and transformative potential on banks and non-bank entities, and its profound implications for consumers. Case studies will also illustrate the various BaaS implementations and offer valuable insights for banks interested in pursuing a BaaS strategy.

Banks looking to provide BaaS as a value proposition will find audax’s and Thought Machine’s solutions well-positioned to seize this unique opportunity and succeed in the new era of financial services.