Your own fintech in a few weeks? With FaaS it's possible

According to the recent CB Insights report, the number of unicorns (companies with a market value of more than $1 billion) in the fintech industry has increased by almost 600% since 2016*. This is an absolute record on the market. Fintech is the sector with the largest number of unicorns, with about 20% of them falling in this category. Such dynamic growth is possible thanks to phenomena such as embedded finance, as well as technological solutions allowing for the possibility of offering financial products in a relatively short time and with reasonable financial outlays.

Post-covid reality

The pace at which new fintech startups have been able to achieve unicorn status in recent years is unprecedented. The dynamic growth of these companies was certainly influenced by the Covid-19 pandemic, which forced and accelerated the digitization processes in many enterprises. In industries ranging from healthcare to education, finance and manufacturing, the virus situation has forced companies to use technology to redesign almost every aspect of their business. In financial startups, the transition to digital technology has been going on for a long time. Fintech innovations, such as contactless payments, mobile financial services, and loan and insurance technologies, have been continuously growing for years. And although the current development results are still influenced by the pace of changes, most of which took place before the global crisis, it is still a great unknown how the industry’s performance will be affected by factors such as the war in Ukraine, rising global interest rates amid record inflation, unceasing supply chain difficulties, ongoing uncertainty about the further development of the pandemic, and increased regulatory scrutiny.

Embedded finance

The growth of the entire sector has been largely helped by the immensely popular trend of embedded finance, i.e., the phenomenon of offering banking, payment and insurance products within the ecosystem of an entity whose main activity hasn’t been related to the provision of financial services to date. Embedded finance allows organizations to launch new sources of income. As a result, companies aren’t the only ones to benefit, because customers also do. According to a study by Juniper Research, the value of the embedded finance market will exceed $138 billion in 2026, while in 2021 it was “only” $43 billion.** In order for new financial products to be created, and relatively quickly, appropriate technological solutions are needed.

At INCAT, we understand this well, which is why we have created FaaS – a comprehensive transaction platform in the form of a service (SaaS) enabling the efficient implementation of all processes necessary to conduct financial activities while taking into account operational security standards and applicable legal regulations.

Banking as a service platform

FaaS is a response to the growing demand of companies for financial services and products that are fully adapted to their needs. The name of the platform is derived from the phrase “Fintech as a Service”, which clearly refers to the concept of “Banking as a Service” (BaaS). The solution is based on advanced machine learning mechanisms and is addressed to entities from the fintech, neo and challenger banking industry. It allows the platform users to verify their business idea very quickly – with low initial expenditure.

The FaaS platform is technologically based on BOS transaction system and includes all the functionalities necessary to start financial activities, such as accounts and transactions, limits, loans, general ledger, payment gateways, and many more.

FaaS supports the financial services of any business focused on ensuring a seamless transaction service and integrating banking, payment and loan products into an existing ecosystem. The platform is in the form of a service and allows efficient implementation of all processes necessary to conduct financial activities, taking into account applicable laws and operational safety standards.

First-choice solution for starters

The FaaS platform is aimed at neo and challenger banks, as well as all companies and start-ups that operate or are related to the fintech industry and are at the beginning of their business journey. FaaS is the perfect solution for those who don’t want to get involved in the technological challenges of implementing a comprehensive financial system – and, therefore, don’t want to invest in the development teams needed to run a given financial product.

FaaS is available in a subscription model, i.e., a flexible licensing and billing model. This means low initial investment and a short lead time. FaaS is a platform that allows the creation of any financial product, efficient implementation of all processes necessary to conduct financial activities, and minimization of operational risk.