Fallon M
Times when banking was reserved for conventional institutions are long gone. Non-banking financial companies also play a major role in the financial ecosystem. Commonly known as NBFCs, such companies run without a full banking license. This is because they operate within the Banking-as-a-service framework. This partnership arrangement works through integration using APIs. If planning to venture into it or already running such a company, you need the right platform for efficient financial service delivery. Here are the features to check to achieve that.
Full Adherence to Rules and Regulations
Start by ensuring that the platforms meet and maintain not only state but also federal regulations. This is important as it’s the only way to tell if the company you intend to partner with can handle the complex regulatory requirements of financial services. For instance, when choosing from baas solutions in the USA, it should comply with the following:
Know Your Customer
Through this compliance you will know that you are dealing with a company that will not tolerate financial crimes, avoiding legal implications. It’d be best if the platform is also licensed to offer a range of financial services. Additionally, it should be designed to handle the ever-evolving regulations in the industry.
Scalability and Flexibility
For the sake of your company’s growth, ensure that the platform is scalable and flexible. This is because it might reach a point where the company handles huge traffic. The feature ensures that the system can handle the load without affecting performance.
Additionally, it reduces the need for manual management, which can be costly. Its flexibility will help during integration with existing systems in your organization.
In your selection, you should evaluate the platform’s scalability by checking its ability to handle a spike in traffic during the trial phase. While at it, you will check if the platform supports multiple programming languages, which will help with integration with other systems.
Security and Data Protection
Safeguarding your customers’ financial transactions and private information is also important. Therefore, you should ensure the platform has robust security and data protection measures. For example, it should be using industry-standard encryption that scrambles the information, rendering it unusable in the event of a data breach.
Additionally, confirm secure offline measures like cold storage. Multi-factor authentication should also feature in the platform’s security measures. It’d be best if the platform conducts regular security audits, which help in maintaining trust and compliance.
Integration Capabilities
Seamless integration is such a huge plus when it comes to banking solutions. For that reason, check the integration capabilities in your selection. This entails assessing the platform’s ability to connect with other applications and services.
You will do so by reviewing API documentation, which will outline the available endpoints and methods. Such documents will also have parameters and data formats. While at it, evaluate the list of supported integration and evidence in use cases.
User Interface
Check the user interface, which should be as friendly as possible. When selecting from baas solutions in the USA, go for the one with the most intuitive interface. Such will have easy-to-follow navigation and instructions to boot. Some come with real-time analytics that will help you in decision-making. You can determine them from descriptions or social proofs.
Technology has undeniably changed the banking industry. Unlike before, these services aren’t limited to traditional banks. You can have a platform that offers financial services, without having a full license through Banking-as-a-Service platforms.
