Top 5 questions every FinTech should ask themselves before choosing a Banking as a Service provider!

Top 5 questions every FinTech should ask themselves before choosing a Banking as a Service provider!

According to the Statista Research Department (2020), Europe, the Middle East, and Africa combined were home to more than 3,500 FinTechs. Similarly, BaFin estimated that roughly 900 FinTechs were in Germany in 2018, seeing an upwards trend in 2019 and 2020. Already four years ago, in 2017, 88% of established financial institutions feared profit losses due to the disruptive innovation from FinTechs. However, 82% of those also planned to cooperate with these FinTech-Startups within the next 3 to 5 years (PwC).

With that being the case, our partners at aye4fin have compiled a list of the top 5 questions any FinTech should ask themselves before deciding on their perfect Banking as a Service provider. While some of the questions might seem like a no-brainer, you might want to take a closer look at why the interpretation of them can be crucial for your business’s success.

  1. What exactly do I need the banking partner to provide?
  2. Which cost model best fits my business?
  3. When do I want/need to go live?
  4. Do I plan to grow internationally?
  5. Am I experienced enough to make the right choice?

For further elaboration on each point, you can check out aye4fin’s new article here.

While some of the questions above might seem quite obvious at first glance, most of them are more profound and require a detailed understanding of the payments and banking landscape. For example, if you did follow the checklist and have found the seemingly perfect provider with a fitting fee model and all the features you need, you still might find yourself not being in the right hands. As a FinTech, your goal is to solve a consumer problem and make your solution as easy to use and customer-friendly as possible. So, even small wrong interpretations of the legal framework surrounding BaaS can make or break your product. Therefore, aye4fin is there to help you answer these top 5 questions, as well as many others that come about.


About aye4fin

The company, headquartered in Cologne, consists of a team of experts who, based on many years of experience, have focused on payment orchestration and transaction-based business models to optimize their customers’ business. The company consists of passionate technical and technology experts who implement projects from the conception to the implementation of digital payment solutions. aye4fin supports its customers, including international trading and industrial companies and payment service providers, with digitization, regulation, and process optimization.

Regarding BaaS solutions, we support customers in particular with the following points:

  • Carrying out a compliance audit to ensure legally compliant structures and processes.
  • Position of the money laundering officer as part of a payment institution.
  • Technical support in preparing permit applications in Germany, Luxembourg, Liechtenstein, and Great Britain.
  • Update of process documents due to regulatory changes.
  • Strategic advice on expanding regulated business models.