Banking-as-a-Service and the transformation of the finance industry: An empirical investigation

Abstract: This thesis aims to provide a deeper look into the current status of Banking-as-a-Service through digital ecosystems, digital platforms and API economy. Research was conducted as qualitative research, which had a purpose of examining the lightly researched concept of Banking-as-a-Service, and shed light on what is the current status of Banking-as-a-Service by pondering its benefits and disadvantages. The topic was approached from the perspectives of business, technology, and legislation. It turned out that most of the current benefits that Bank-ing-as-a-Service creates, are business benefits, but most of the disadvantages are in the context of technology and legislation. At the moment it can be said that there exists a variety of understandings regarding what exactly Banking-as-a-Service is seen as. Our results bring many new and interesting perspectives to the table, and it can be said that the more and deeper we dive into the whole of what Banking-as-a-Service includes, the more there is width and possibilities, but also disadvantages and immaturity. At the moment the ultimate meaning of Banking-as-a-Service depends on how it is packaged and what it contains, as it is mostly provided for trusted partners, and other actors may then use the APIs according to what the PSD2 enables.