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Learn how B4B Payments provides smart and flexible payment processing solutions, which enable any size organisation to manage expenses, simplify payroll and offer employee rewards and incentives.

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Empowering Disaster Recovery: Fintech Solutions for Efficient Aid Distribution

By Marchelle Becher, US Business Development Executive

Millions of people are impacted by natural disasters each year, facing financial challenges such as damage to homes, the need for temporary shelter, and the replacement of personal items and food. Increasingly, fintech solutions are becoming essential in addressing these urgent needs efficiently and effectively.

Over the past five years, the US has experienced an average of $18 billion annually in natural disaster-related damages. With increasingly extreme weather patterns, this trend is expected to worsen. In the first half of 2024 alone, the US has already experienced 11 confirmed weather/climate disaster events with losses exceeding $1 billion each, well ahead of the expected 5-year average.

Having attended several conferences dedicated to disaster aid and preparedness, it’s clear that private and public organizations are actively seeking viable solutions. Companies like B4B Payments are crucial in providing financial aid distribution and ongoing support for those affected by disasters, especially regarding financial inclusion.

Addressing Financial Vulnerability and Inclusion

Low-income households are disproportionately affected by disasters. Many do not qualify for disaster loans, and grants often fall short. Delays in relief efforts compound their financial vulnerability. However, changes are taking place to improve support for those impacted by these life-changing events.

The Federal Emergency Management Agency (FEMA) overhauled its aid distribution methods earlier this year. One fundamental change, made effective March 22, addresses disaster victims’ economic challenges. FEMA’s Displacement Assistance program now provides money for shelter not only to those who had to leave their homes but also to those who were already homeless. As FEMA stated, this change is a “more equitable and efficient” approach, overcoming the challenge and addressing the disparity of helping only those who can pay their hotel bills upfront.

Additionally, FEMA has created the Serious Need Assistance program, providing $750 to individuals for severe or immediate needs such as water, food, first aid, infant formula, diapers, personal hygiene items, or fuel for transportation. This payment is in addition to aid for home repairs and other disaster-related needs.

In 2023, the United States experienced 28 separate weather or climate disasters that each resulted in at least $1 billion in damages. NOAA map by NCEI.

The Urgent Need for Preparedness Funds

With improved fund issuance, private and public agencies are stepping up efforts to work with companies like B4B Payments on “Preparedness Funds”—pre-arranged financial resources and distribution solutions that can be quickly activated in the event of a disaster. The “Preparedness Funds” approach improves financial inclusion, reduces the time needed to distribute funds, and eliminates the potential for theft and fraud with the self-service platform.

Supporting disaster preparedness and relief to ensure funds reach those in need is a critical focus for B4B Payments. Financial technology companies can simplify and expedite relief payments, ensuring a smooth customer experience and efficient distribution of funds, especially compared to manual or paper-based methods.

B4B Payments’ Comprehensive Solution

We offer a seamless prepaid card payout solution that considers the entire ecosystem, from funders to survivors, ensuring secure and efficient fund distribution. With our self-managed, instant issue platform, organizations and agencies can send physical and virtual prepaid cards to those in need, allowing for quick fund distribution while achieving full transparency, reporting capabilities, security, and guaranteed regulatory compliance.

Key benefits of working with B4B Payments include:

  • Instant issuing and delivery with activation timing control and funding flexibility, allowing agencies to choose when to activate cards, reload, and options to send either physical or virtual cards.
  • Secure, self-service platform offering full management and program control with the ability to set hierarchy-based access.
  • Real-time reporting capabilities to monitor programs, identify trends, and develop valuable insights, easing analysis access data within a specific time-period view transaction volume, merchant category spend, and ATM usage.
  • A simple mobile interface enables recipients to block their cards if they are lost or stolen and access accurate, real-time account information.

By leveraging our global payment solutions, our partners can better prepare for and respond to disasters, ultimately building stronger, more resilient communities.

B4B Payments’ Comprehensive Solution

B4B Payments is a proud member of Payments as a Lifeline (PaaL), and we are committed to transforming disaster relief efforts through innovative financial solutions. If your agency wants to improve its aid distribution methods and ensure rapid, secure, and transparent fund disbursement, we invite you to partner with us. Together, we can significantly impact the lives of those affected by natural disasters.


Visit our Disaster/Humanitarian Information Page for more information.



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Mastering Payment Management for Corporate Events: Simplified Solutions

By Susie Shyatt, US Business Development Executive

When it comes to corporate events, efficient financial management is critical. Whether you’re organizing a corporate retreat, an industry conference, or a large-scale public event, managing expenses smoothly and transparently is essential. Corporate-funded prepaid cards are transforming how companies handle event payments, making the process easier and more efficient.

The Pain Points of Traditional Payment Methods

The reality is that traditional payment methods like checks, ACH transfers, cash, and vouchers are riddled with challenges. Checks are costly, not just in terms of fees but also the time and resources required to process them. Someone has to be on-site to issue a check, and the recipient must have a bank account to access the funds.

ACH transfers, while more modern, still fall short. They’re slow, expensive, and offer no way to retract funds once they’re sent. Cash, on the other hand, brings its own headaches: manual handling, the risk of loss or theft, and high distribution fees.

Vouchers might sometimes work, but they’re limited in where they can be used and are often difficult to track. Issuing vouchers is usually a manual process, adding another layer of complexity to an already cumbersome system.

A Modern and Simple Solution

Corporate-funded prepaid cards offer a straightforward, effective solution to these issues. With these cards, you can load funds quickly and make them instantly available, simplifying the entire process of paying staff, covering event expenses, and distributing funds to attendees.

For example, when paying event crews or gig workers, self-issuing cards ensure that payments are secure and timely, eliminating the need for checks or cash. Managing expenses is equally simple. Staff can use the cards for rentals, deposits, transportation, per diems—whatever the event demands. And because every transaction is centrally recorded, budgeting for future events becomes much more manageable.

Attendees, such as members of President’s Clubs, can also benefit. They can receive cards to manage their own expenses without the limitations of traditional payment methods.

B4B Payments’ prepaid cards enable instant payouts, with funds immediately available. The platform is user-friendly, allowing you to manage all cards from a single dashboard, with features like freezing and reissuing lost or stolen cards. This doesn’t just save time; it provides peace of mind.

Additionally, these cards are inclusive, providing funds to underbanked or unbanked individuals and ensuring that everyone involved in your event is taken care of. Reloadable cards make recurring payments seamless, letting users meet their needs without disruption.

For companies with a global reach, our cards can be issued in multiple currencies, eliminating foreign exchange fees by transacting in local currencies. This global flexibility ensures your events run smoothly, no matter where they’re held.

Tailored Solutions for Key Stakeholders

Our solution isn’t one-size-fits-all; it’s designed to meet the needs of all organizational roles involved in event management:

  • Event Operations: Simplify logistics and vendor coordination.
  • Finance: Streamline payments and budgeting while ensuring financial transparency.
  • Human Resources: Ensure smooth, timely payouts to employees and staff.

By adopting corporate-funded prepaid cards, you’re not just simplifying your event management process—you’re cutting costs and enhancing financial transparency. Our solution directly addresses the pain points of traditional payment methods, providing a modern, efficient alternative tailored to the needs of today’s corporate finance leaders.


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The Nordic Opportunity for Fintechs

The Nordic banking industry is one of the world’s most technologically advanced, secure, and reliable.  

With high levels of digital adoption among consumers, coupled with comparatively high disposable income, it presents a potentially lucrative opportunity for fintechs looking for growth.  

In this blog post, we’ll explain what makes it unique and how you can capitalise on the opportunity.

The Nordic Banking Landscape 

The Nordic banking industry is one of the best in the world, headlined by Nordic giants such as Nordea Bank, SEB, and Swedbank. The combination of profitability, efficiency and risk management makes for some impressive reading, as shown below. 

Major Nordic bank results for Q4 2022, Deloitte. 

Within such a fertile environment, the future of the fintech landscape also looks excellent. For example, the number of people using digital payments is expected to rise to over 27 million by 2028, which is the entirety of the Nordic population. 

The players within the fintech startup ecosystem also have a high trust culture of sharing information, which is crucial for the rapid development of the industry. 

Mobile banking 

The Nordic region has high adoption rates when it comes to making mobile payments. The region as a whole has some of the lowest rates of cash usage globally. 


Sweden
Norway
Finland
Denmark 
Percentage of people who never use cash48%40%10% (rapidly increasing) 27% 

Nexi Group, 2023

Consumers are embracing mobile payments, with the Nordic region as a whole reaching adoption rates ranging between 83%-94%, 10%-15% higher than the European average. 

This is partly due to some incumbent banks, such as DNB, launching their own payment platform, Vipps, which has a penetration rate in the Nordics of over 75%. Another example is Mobile, from the central Nordic bank DNB, which has a market penetration of 93% in Norway. 

Sustainability

Nordic fintechs have been set to remain at the forefront of sustainable financial development. 

They’ve been exceptional at balancing the need for financial performance with environmental responsibility.  Those impressive numbers at the beginning of this blog post were achieved whilst being proactive about financial products such as carbon offset platforms and sustainable investment tools. 

A semi-recent example of this is Doconomy’s acquisition of Dreams Technology. 

Doconomy is a leading climate tech startup. It helps banks, brands, and consumers get insights about their spending habits and how they may affect the environment. This acquisition will enable banking customers to make more climate-conscious consumption decisions. 

Secure Payments

The Nordics’ robust banking regulations framework means that consumers have a high level of trust when it comes to using payment platforms. This supports the strong adoption rates, which are an excellent basis for new market entrants.

An example of this is the popularity of Sweden’s Trustly. Trustly is an open banking fintech that enables consumers to pay for products and services securely without sharing their bank details. This offers consumers valuable peace of mind as they don’t have to worry about their bank details being compromised when purchasing.

Partnerships and collaboration

In late 2023, Enable Banking, CRIF and Strands, three leaders in the Nordic fintech space, announced a partnership to bring Open Finance Solutions to the Nordic regions. 

The partnership will be pivotal to open banking APIs’ growth and connectivity to financial products such as loans, pensions, and credit facilities. Major banks, fintechs and other financial institutions will be able to collaborate by sharing data and delivering innovative products and services to consumers and businesses.

This is paving the way for new market entrants who may have missed the initial first-mover advantage at the start of the revolution started by PSD2.

Also, it makes up for the collapse of the hugely promising P27 initiative. This would have made cross-border transactions between the Nordic countries and their different currencies seamless. 

The opportunity

Fintechs have an opportunity to make essential inroads via innovators and early adopters of payment technology. 

There is less need to educate consumers about the benefits of payment tech. They already know it and have seen the benefits.  

The journey to market and profitability is being accelerated in the region. They’re a demanding population, but the rewards can be extensive if you meet their high standards. 

However, to access these rewards, fintechs must comply with some of the most robust banking regulations in the world, as it can be challenging to break into the Nordics via a banking licence. 

B4B Credentials

B4B enables fintechs to take advantage of lucrative opportunities. We do this via an infrastructure-based partnership with them. We provide back-end services so that they can serve their customers via card issuing or other financial products. 

Take one of our clients, Juni. We’ve been working with them since 2022 as their BIN sponsor. This was the engine behind their prepaid Mastercard card proposition and made it easy for businesses to keep track of their finances across multiple platforms. By partnering with B4B, they can ensure compliance, strengthen their presence in the UK, and enhance scalability. 

Samir El-Sabini, Co-founder and CEO of Juni, highlighted the benefits of partnering with B4B. 

“We have a long-standing partnership with B4B, primarily in the UK, that has enabled us to scale Juni and continue our fast-paced growth while, most importantly, giving our customers more value when using our platform. Through B4B, we’ve launched both new currencies and cards, and we’re looking forward to building out our offering in 2024.”

Conclusion

The Nordic region is a hotbed for fintechs to expand their presence. Partnering with B4B can make that process a smooth, stress-free experience for everyone involved. 

 

 

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Banking-as-a-Service (BaaS) vs. Open Banking: What’s the Difference?

The financial landscape is continuously evolving, propelled by innovation and driven by business demand for more accessible, efficient services. Two concepts leading this change are Open Banking and Banking-as-a-Service (BaaS). This blog aims to clarify these terms, explaining their distinct characteristics, benefits, challenges, and unique roles within the payments ecosystem.

Understanding Open Banking

Open Banking is a system where banks open up secure APIs to third-party developers. This innovation is a result of advancements in technology and changes in financial regulations, like PSD2 and PSD3, that mandate banks to share customer data in a secure manner.

Technical aspects of Open Banking

Open Banking operates using Application Programming Interfaces (APIs). APIs act as interfaces, allowing different software applications to communicate and share data with each other. In the context of Open Banking, APIs enable third-party developers to connect with a bank’s systems securely.

For instance, a financial management app developer can use a bank’s APIs to access account information or initiate payments on behalf of a customer, while maintaining the security and privacy of the customer’s data. 

It means that consumers can use third-party apps to manage their finances, make payments, or even apply for loans, without ever leaving the app’s environment. The central role of APIs in Open Banking highlights the importance of designing and managing APIs effectively for both security and the customer experience.

Benefits of Open Banking

The most significant advantage of Open Banking is its capacity to drive competition and innovation. By opening up access to financial data, it creates a level playing field where even smaller tech companies can develop and launch competitive financial products. 

It results in a broader choice for consumers, higher quality services, better pricing, and, ultimately, improved customer experience.

Open Banking promotes transparency, as customers gain the ability to compare different financial products and services and make more informed decisions. It enables financial institutions to collaborate, leading to more integrated services and the potential to unlock new revenue streams.

Challenges of Open Banking

Open Banking is not without its challenges. While 84% of banks worldwide have embraced Open Banking, there are concerns about trust among consumers, which has held back mainstream adoption. New research has revealed that only 16% of UK consumers believe it is safe, with 58% still struggling to understand what it is.

Another challenge is regulatory compliance. Open Banking is subject to strict financial regulations that vary by region, like PSD3 in Europe.

PSD3 (the third Payment Services Directive) is the latest proposed regulation by the European Union, which is expected to enhance the security of transactions, improve consumer rights and further level the playing field between banks and non-banks.

PSD3 aims to clarify and reinforce the use of Strong Customer Authentication (SCA) in online and contactless payments, enhancing security for consumers.

With a broader scope and more stringent regulations, ensuring compliance with PSD3 will be a significant challenge for businesses and regulators. There is a risk that some businesses may struggle to meet the new requirements, leading to potential penalties or sanctions.

Understanding Banking-as-a-Service (BaaS)

BaaS is a model where licensed banks integrate their digital banking services directly into the products of other businesses. It emerged from the need for a more efficient way for companies, particularly in the tech sector, to incorporate banking services into their offerings.

Technical aspects of BaaS

As with Open Banking, BaaS hinges on the successful implementation of APIs. In a BaaS model, APIs enable a seamless connection between businesses and banks. These APIs allow the secure transmission of data between the business’s customer-facing applications and the bank’s services.

A typical example could be an online retailer that uses BaaS to provide financial services to its customers. Through APIs, the retailer’s website or app can connect directly to banking services, enabling customers to apply for credit, make payments, or even open a new account without leaving the retailer’s platform.

Benefits of BaaS

BaaS offers several compelling benefits. The most prominent is the ability it gives non-financial businesses to provide banking services. By leveraging BaaS, these companies can integrate banking services directly into their products without the need to build these systems from the ground up or navigate the complex process of obtaining a banking license.

BaaS can also enhance customer experience and loyalty. Companies using BaaS can provide a more holistic customer experience by embedding financial services seamlessly into their existing offerings.

BaaS offers scalability. Companies can add or remove banking services as needed without significant infrastructure changes. It makes BaaS a cost-effective solution, especially for start-ups and growing businesses.

Challenges of BaaS

Like Open Banking, BaaS faces several challenges. It’s subject to the same rigorous regulatory requirements, including data protection laws and financial service regulations. Compliance can be complicated and require substantial resources.

Another challenge is the considerable investment required in technology and security. While BaaS providers handle much of this, businesses using BaaS services must ensure their systems are capable of integrating with the BaaS platform securely and efficiently.

Comparing Open Banking and BaaS

While both concepts leverage APIs and aim to transform the financial services industry, their primary difference lies in their application. Open Banking involves third parties creating services that link to banks, while in BaaS, the banks integrate their services directly into third-party businesses.

The unique roles of Open Banking and BaaS in the fintech ecosystem

In the fintech ecosystem, Open Banking acts as a catalyst for innovation, enabling third parties to design new customer-centric solutions. BaaS serves as a foundation for businesses to incorporate banking solutions, thereby expanding their service portfolio and creating additional revenue streams.

Technical comparison between Open Banking and BaaS

From a technical standpoint, both use APIs for integration. However, the approach to data sharing differs. Open Banking usually involves read access to data with customer permission, while BaaS generally involves more comprehensive access and integration with the bank’s systems.

Both are shaping the future of financial services

The financial sector stands at the cusp of a data-driven era, with Open Banking and Banking-as-a-Service (BaaS) at the forefront of this revolution. Both concepts, while distinct in their applications, share a common goal: to redefine the way consumers and businesses interact with financial services. 

Open Banking democratises access to financial data, fostering innovation and competition, while BaaS provides a seamless integration of banking services into diverse business offerings. 

Despite the challenges that both technologies face, the potential benefits—enhanced customer experiences, increased service diversity, and new revenue opportunities—far outweigh the hurdles. It’s evident that both Open Banking and BaaS will play pivotal roles in shaping the future of financial services.

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Bank to the Future: Why banking is in flux?

Historically, banks have successfully monopolised the financial services market. They enjoyed a position as an absolute necessity for both consumers and businesses. However, in an increasingly digital world with new rules and regulations, traditional banking models have been disrupted. 

Fintechs have emerged in abundance in the last decade. They are offering innovative services and great user experiences that can adapt quickly to the constantly evolving demands of businesses and consumers.  

With so many new players entering the financial stage, competition is fierce. Traditional banks have been forced to adapt and invest in digital transformation to remain in the game. They are striving to adjust and innovate so they remain relevant in a new commercial landscape being driven by fintech innovation. Traditional banks are in a state of flux.

In this blog, we uncover what led the banks to this point and the development of new fintech business models that now allow licensed banks to integrate their banking services into businesses.  

Two sides of the banking story 

The modern definition of a bank has been subject to many changes over hundreds of years and varies depending on the region. The primary responsibility of central financial institutions is dealing with commercial and public monetary issues such as deposits, loans, and investments on a flow-by-flow basis between internal and external markets.

The need for comparing the two sides of the story is crucial for understanding why banking is in flux and their future position within the financial sector and wider cultural society. 

Origins of traditional banks

The first private and communal money service dates as far back as 1,800 BC in Babylon. Ancient merchants would deposit money and imported goods within temples. 

Traditional banking was first evidenced within the Greek and Roman Empires, where private individuals and businesses would invest and lend money. The upper class of the Roman Empire chose to manage their money through pious officials, who established lending with interest and kept track of finances with written records. 

Conventional banking practices were established in the fourteenth century in Venice, Florence and Genoa. The Venetian Republic created the first official central financial institution in 1587, driven by the need to fund ongoing war efforts. They forced a loan, creating the first official central financial institution. As a result, banking developed out of necessity as an efficient way to pay for war expenses, as well as goods and services worldwide.

Fractional reserve banking and the issuance of banknotes emerged in the 17th century through central banks and national financial institutions. This can be seen as the point where banks established themselves in a central and unique position in the economy. Their role was to maintain the stability of currency (attempting to curb inflation) and stabilise the general economy by offsetting shocks.

Massive rewards of the traditional banking market

Many years later, the banks had established themselves as an immovable force in the world’s economic, political, and even social affairs.  

The banks also enjoyed a virtually impenetrable commercial landscape. New competitors were effectively kept out of the market. This was due to stringent requirements, such as high collateral demands and tough approval processes.  

These high barriers to market entry meant incumbent banks had no real competition. Customers needed to visit a local branch where all the bank’s financial services could be purchased (after much paperwork) in a self-contained financial ecosystem. Banks, therefore, didn’t see the need to invest in advancing their services to retain and grow their customer base, as would be expected in other industries.

This lack of choice resulted in customer ‘loyalty’ and low attrition for years. Ultimately, the lifetime customer relationships and strong brand awareness resulted in the banks reaping huge profits for decades.

Origins of fintechs 

Fortunately, this lack of competition in the financial services sector did not go unnoticed.

New regulations implemented by the European Union were introduced with the explicit purpose of stimulating fresh competition and innovation in the financial services market. 

This came at a time when social, political, and demographic influences converged with new technology. Smartphones, apps, high-speed internet, and cloud computing made it possible to offer financial services online and through apps. 

This paved the way for the birth of fintech with its brand-new technology and a focus on great user experience to fill the huge gap left by the banks. 

The economic crisis of 2007-08 created a climate of distrust in traditional financial institutions. This also helped pave the way for fintech alternatives with a more transparent attitude and customer-centric approach. 

A wake-up call for legacy banks

The growth of the fintech industry was a major challenge to the financial services sector and sent the long-established banks into a state of flux. 

They could see how customers were migrating away from high street services to apps on their smartphones. The number of bank branch closures mirrored this shift, with 14,689 branches in 1986 to just over 8,000 by 2022. 

The first target of the new fintechs was the foreign exchange and currency conversion services of the banks. Fintechs such as Transfer Wise (now Wise) were launched to specifically target this market, which had been overcharged and underserved for years. 

The banks could see how their service model could be unpicked by the fintechs.  

Breaking banks – the outcome

Some incumbent banks started spending billions on digitising their existing business models to try and keep pace with the fintechs. They hoped this would help maintain their market share and demonstrate an ability to innovate. Many banks are still struggling with this process ten years later.

Other incumbents tried to replicate the fintech approach of breaking their service down into component parts and developing their own technology that could be offered as a Banking as a Service (Baas) solution. Some banks chose to partner directly with fintechs to develop this technology. Essentially, it is a new fintech front end that is still reliant on legacy bank processes and policies.

Other fintechs decided to invest in their own banking licence. That way, they could cut out the legacy banks completely. They would have the latest BaaS technology without having to rely on the slow processes and approval policies of the legacy banks to underpin their solution.

The Future with BaaS (Banking as a Service)

Banking as a Service (BaaS) enables non-financial businesses such as retailers and telecom companies to ‘subscribe’ to the financial services they want to offer their own clients. Those businesses now don’t need licences or regulatory compliance to offer financial services that were previously only available via banks. 

The new reality for banks

Some banks are struggling to find their way in the new competitive environment. They are seeing some big names adopt the BaaS model.

Amazon, Apple, Samsung and Ikea are using BaaS to improve conversion rates and add new revenue streams. Alipay uses BaaS to offer a range of financial services, including savings accounts, insurance, and investment products to its customers. 

Among those fintechs that invested in their own banking licence were Monzo, Starling and Atom, who set themselves up to compete directly with legacy banks. B4B Payments was one of those who have been awarded a banking licence for their BaaS solution. 

What’s next for banks?

The banks have had change forced on them. Legacy technology is a big part of the problem, but they also have policies and procedures that are slow and outdated compared to today’s fintechs. Some banks are still wrestling with digital transformation projects, while others are partnering with fintechs. 

The trend towards payment and service convenience is clear and irreversible. Banks once enjoyed a situation where their customers had to visit their branches where all their services were available to purchase in one place. Through regulatory changes, new technology and fintech challenges, this benefit can now be enjoyed by non-financial service companies who want to build customer loyalty and increase profitability through BaaS. 

Banks need to adjust to a future where they don’t hold all the cards.

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5 Benefits of Banking-as-a-Service (BaaS) for Fintechs

Picture this: a small fintech startup fuelled by bright ideas but weighed down by the mammoth task of building a banking infrastructure from scratch. The clock is ticking, competitors are surging ahead, and every day spent tangled in red tape feels like a missed opportunity.

Now, imagine a solution that sweeps these obstacles aside, laying down a golden pathway straight to the heart of the financial market. That solution is Banking-as-a-Service (BaaS), the game-changing strategy that’s turning fintechs from contenders into champions.

In this blog, we will explore how BaaS offers tangible solutions for high-level decision-makers and technical individuals within the fintech industry. We’ll highlight the five key benefits of BaaS, using some real-world examples to illuminate how BaaS is shaping the future of financial services.

1. Speed and Efficiency

The first benefit of BaaS we’ll consider is its ability to enhance operational speed and efficiency, which is vital for fintechs seeking a competitive edge. 

BaaS enables fintechs to leverage pre-existing banking infrastructure, speeding up their time to market. For decision-makers, this means a quicker return on investment and the ability to implement a more agile business strategy.

The integration of BaaS APIs into fintech platforms facilitates faster and more efficient development. APIs serve as the building blocks for digital services, eliminating the need for lower-level infrastructure development. 

As an illustration, let’s consider a use case with a Nordic fintech start-up wishing to become a fully licensed entity.

Typically, most small businesses in the Nordics opening a corporate bank account will face lengthy processes and high costs.

The start-up wished to simplify corporate payments for small businesses but had significant challenges due to the highly regulated environment. They were able to achieve their goal by collaborating with a trusted BaaS provider.

The BaaS provider gave the fintech start-up access to its embedded finance services and API integration. This linked the fintech’s financial platform with the BaaS provider’s banking services to offer DKK, SEK, EUR, USD, and GBP accounts. Through these accounts, the BaaS provider has payment services in both local rails and 25+ currencies through SWIFT and NACHA.

The BaaS provider helped the fintech find a speedy route to market. The fintech navigated the complexities of regulations and payment technologies, while ensuring compliance and ethical conduct.  

2. Scalability

Another major advantage of BaaS is scalability. 

Typically, fintechs looking to grow can face the daunting task of expanding their in-house banking infrastructure—this is a complex and costly process. BaaS simplifies this by providing access to scalable banking services that can adapt to a fintech’s growth trajectory.

From a technical standpoint, the modular nature of APIs facilitates scalability. APIs allow services to be expanded or reduced based on demand. As a fintech’s customer base grows, they can easily add more services or scale existing ones. Conversely, if they need to scale down, APIs can be deactivated with minimal disruption to the overall system.

Chime, a neobank that provides consumer banking services, leverages this feature of BaaS to extend its services and cater to its rapidly growing customer base, all without needing to make hefty investments in infrastructure.

3. Innovation and Product Development

Traditionally, a significant portion of a fintech’s resources would be consumed by the task of building and maintaining a banking infrastructure. BaaS changes this equation dramatically. It allows fintechs to delegate the complexities of infrastructure to a third-party provider, thereby freeing up internal resources.

For decision-makers, this strategic shift is transformative. It means that teams can pivot from being bogged down with compliance and infrastructure management to focusing on designing competitive, unique offerings that resonate with their target audience.

The API-centric nature of BaaS is a boon for product development teams. APIs are like the building blocks of the digital world; they enable fintechs to quickly assemble, test, and iterate on new products and features. This environment of rapid prototyping is essential in a sector where being first-to-market can confer a significant competitive advantage.

With BaaS, fintechs are not just innovating on their existing products—they are in a position to expand their product portfolio altogether. Whether it’s adding new payment options, launching investment products, or integrating wealth management services, BaaS provides the tools and services necessary for fintechs to diversify their offerings.

4. Cost Reduction

BaaS can have a significant impact on a fintech’s bottom line. 

Instead of investing heavily in building and maintaining in-house banking infrastructure, fintechs can leverage BaaS to access necessary banking services. 

Navigating the complex world of financial regulations can be a costly affair. Compliance requires dedicated personnel, continuous monitoring, and frequent updates to systems to align with changing regulations. 

BaaS providers, being specialists in the banking domain, manage these compliance aspects as part of their core services. For fintechs, this means that the burden—and cost—of regulatory compliance is significantly reduced. They can operate with the assurance that their BaaS partner is keeping them on the right side of the law, without the need to invest heavily in compliance teams and tools.

5. Enhanced Customer Experience

Improving the customer experience is a strategic priority for any fintech, and BaaS can play a pivotal role in achieving this. 

BaaS allows fintechs to integrate financial services seamlessly into their own platforms, creating intuitive and convenient services for their customers.

BaaS providers invest heavily in security protocols and compliance, and by partnering with them, fintechs can assure their customers that their data is in safe hands. This trust is fundamental to customer retention and is a significant aspect of the overall customer experience.

BaaS’s streamlined approach extends to operational efficiency, which has direct implications for customer satisfaction. By leveraging pre-built banking services, fintechs can execute transactions and process requests at a much faster rate. This means quicker loan approvals, instant account updates, and real-time payment processing – key factors that contribute to a positive customer experience.

Raisin UK offers its customers a savings marketplace without having to develop the underlying banking infrastructure. Instead, they leverage BaaS APIs to open accounts, collect deposits, and interact with other banks.

Conclusion

Banking-as-a-Service (BaaS) offers powerful benefits to fintechs, driving speed, efficiency, scalability, innovation, cost reduction, and an enhanced customer experience. It empowers decision-makers to enact strategic business advantages and fosters a fertile environment for technical individuals to innovate. 

The integration of BaaS APIs provides an array of new possibilities in product development, operational efficiency, and customer engagement. 

BaaS is more than just a technical solution—it’s a strategic business model that helps fintechs to compete in the financial landscape. With the continued growth of the digital economy, the role of BaaS in the fintech industry is set to be a defining factor in shaping the future of finance.

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Rewarding Employees with Cash-Christmas

It might be too early to talk about Christmas, but it’s not too early to think about rewards and incentives for your employees.

Christmas is the perfect time to express your appreciation for your team’s hard work throughout the year. This festive season, B4B Payments offers a simple yet meaningful way to spread cheer among your employees – our prepaid gift cards. 

These cards provide your employees with the freedom to choose their own reward and are a testament to our 17 years of expertise in payments and our global recognition as a trusted provider of card issuing and embedded payment services, now as part of the Banking Circle group of companies.

The pain points of Christmas rewards

Selecting the perfect gift can often be a challenging and complex process. It’s a delicate balance of aligning the recipient’s preferences, interests, and needs with your budget constraints. You might also need to consider the uniqueness of the gift, its relevance to the recipient, and its potential longevity. Moreover, organisational considerations such as budget, ease of distribution, and the message the gift conveys must also be taken into account.

Even after putting careful thought into these factors, there’s no guarantee that the chosen gift will hit the mark. It could be the wrong size, colour, or simply not to the recipient’s taste. This uncertainty can turn the joyful act of giving into a stressful endeavour.

That’s where B4B Payments card services step in as the ultimate solution. They are universally appreciated because they offer the gift of choice. Using prepaid cards as a form of reward, the recipient has the freedom to select something that truly resonates with them, something they genuinely need or have been eyeing for a while. It’s an empowering gift that respects individual tastes and preferences. 

B4B Payments – offering unrivalled rewards and incentives

Let’s delve into some of the benefits of choosing B4B Payments for your corporate gifting this festive season:

1. Simplify management with our Cardholder app

Our user-friendly Cardholder app allows employees to manage their card balances and more easily. Plus, our dedicated support team is always on hand to assist with any queries.

2. Spend at millions of locations worldwide

Whether you’re rewarding a workforce that’s working from home, back in the office, or never stopped throughout lockdown, B4B Payments has got you covered. Our prepaid cards can be used anywhere Mastercard is accepted, including in their Google Pay or Apple Pay wallet!

3. Flexible, sustainable, and globally accepted

B4B Gift Cards offer the flexibility of being single-use or reloadable for incentives, payroll, payout, or expenses. They are made from 75% recycled plastic materials, offering a sustainable choice.

4. Expert team, advanced products, trusted global provider

Our expert team boasts a market-leading level of experience in setting up successful card programs, and we offer advanced end-to-end payment solutions to help you grow your business. As an FCA and Bank of Lithuania Authorised E-money institution, a Principal Member of Mastercard, and a partner provider to Mastercard Fintech Express Program, we are a trusted global provider of card issuing and payment services.

A gift from B4B Payments this Christmas

It’s not all about your employees this Christmas. There’s something for you, too. At B4B Payments, we’re offering FREE delivery on our cards to make your gift-giving that bit easier (and cheaper).

The minimum order value for our gift cards is £1,000, and this applies only to non-branded cards. The offer is limited to a single bulk order to a UK office address, with each card carrying a minimum load of £10. This special offer is available until October 31st, 2023.

Want to know more about rewards and incentives

Rewards and incentives can be offered all year round to improve employee retention. Take a look in more detail into how B4B payments use 17 years of experience in the payments industry to offer seamless rewards and incentives for businesses around the globe.

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BIN Sponsorship Company News Newsroom

Maximising Efficiency for Regulated EMIs with Scheme Permissions

Firstly, congratulations on navigating the complex process of acquiring your Electronic Money Institution(EMI)-regulated status and scheme permissions. It is a significant achievement in the FinTech sector, where many startups in the $245 billion industry are still struggling to reach. But what’s next?

You may feel overwhelmed at the thought of transitioning from using a BIN Sponsor to managing your own scheme memberships. New settlement processes and increasing demands on your resources can seem like a daunting challenge. Embracing your new status requires strategic planning and partnership. You’re poised to redefine your customer experience, increase autonomy, and drive growth. Yet, you must also consider the operational complexities this transition entails. How do you maintain continuity of service during the switch? How do you deal with new compliance requirements? These are critical questions to answer.

B4B Payments’ BIN Sponsorship 2.0 can seamlessly address these challenges. Our service can facilitate this transition, providing comprehensive support, industry expertise, and innovative solutions to set you on the path to success. Let’s explore how we can help your FinTech venture thrive.

Benefits of an EMI with Scheme Permissions

Your new status as a regulated EMI with scheme permissions brings several benefits, including enhanced security, increased compliance, and bolstered customer trust. 

Let’s take a look at those benefits in a little more detail

1. Increased security and compliance

As a regulated EMI, you’re under the strict supervision of financial authorities, which necessitates adherence to high standards of security and compliance. This brings a host of benefits, particularly in terms of corporate payments. For instance, under the regulation of the Financial Conduct Authority (FCA) allows you to issue e-money and provide associated payment services, such as transfers and foreign currency payments.

Your new status also fortifies your defence against fraudulent activities and reduces the likelihood of compliance violations. Thereby, it fosters a safer and more trustworthy business environment. It’s like having a shield that protects your business while enhancing its reputation in the market.

Additionally, as a FinTech startup, you’re now in a position to extend partnerships as a regulated EMI. This means you can help other businesses benefit from your expertise in maintaining secure and compliant payment infrastructures, further solidifying your standing in the industry.

2. Enhanced customer confidence and trust

As an EMI-regulated FinTech with scheme permissions, you’re in a position to enhance customer confidence and trust. By partnering with major issuers such as Mastercard and Visa, you can issue your own unique card numbers to cardholders. Coupled with branded cards, this strategy can supercharge customer loyalty and attract new business.

At B4B Payments, for instance, we offer our customers the ability to send payments via various channels like SWIFT, Faster Payments, CHAPS, SEPA, and local clearing in the USA (ACH) and DKK to over 20 different countries. This wide range of services offers freedom for businesses dealing overseas, or looking to grow overseas, to ensure that their needs are met efficiently and effectively.

We also leverage state-of-the-art security measures to protect cardholder information and transactions, ensuring peace of mind for users. Furthermore, our dynamic business model allows for scalable solutions that can adapt to your evolving business needs. We also provide customised reporting and analytics, offering insights into spending patterns that could optimise business operations. With B4B, businesses can not only streamline their payment procedures but also transform them into strategic tools for growth and development.

Leveraging B4B Payments to Stay Efficient

Whether you’ve used B4B’ BIN Sponsorship 2.0 to reach this point in your journey or are looking for additional support, we have a range of services that can offer significant benefits.

As an entity authorised and regulated by the Financial Conduct Authority (FCA) and holding an EMI licence, B4B is well-positioned to offer further support with compliance, security, settlement, and platform integration.

Our compliance and security measures are enable to protect businesses and their employees’ data and funds. As a regulated EMI with scheme permissions, you can continue (or begin to) offload your safeguarding requirements to us. It frees up internal time to concentrate on scalability and business growth. With 17 years of industry experience, we ensure that customer funds are held separately from your company’s other funds, and that you’re covered by the appropriate insurance policies that meet industry standards.

Our platform is also designed with compliance in mind. It ensures all transactions comply with regulations such as Payment Services Directive (PSD2) and Anti-Money Laundering (AML).

Furthermore, we offer a ‘Settlement Only’ package that allows you to leverage our issuing capabilities while you develop your own customer interface to manage client accounts.

B4B Payments – Your Partner in the Payments Journey

No matter where you are in your payments journey, B4B can help you strengthen your proposition. With our expertise and customer-centric services, we can optimise your operations and make the most of your new status as a regulated EMI with scheme permissions.

Explore more about B4B’s BIN Sponsorship 2.0 service, and our other payment services, including embedded cards, FX, and more. By partnering with us, you can maximise efficiency, ensure compliance, and bolster your business’ growth in the rapidly evolving FinTech landscape.

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Company News Expense Management Newsroom

Out with the Old: A Better Way to Manage Ad Buying with Prepaid Cards

Advertising and marketing agencies can struggle to manage budgets and gain greater control over ad spending while working to meet the demands of multiple clients. 

The ad purchasing challenges agencies face commonly stem from the use of credit cards and legacy payment processes (e.g. bank wires). Using credit cards for managing ad campaigns creates the chance of overspending and predefined credit limits being hit unknowingly, resulting in the account being frozen and campaigns jeopardized. The same holds true should a credit card be reported for suspected fraud or as being lost or stolen. In such cases, the credit card account must be frozen, with few ways to resolve issues until a replacement card is presented. 

The risks are higher for agencies using a single, company-wide credit card to manage multiple client accounts. Some agencies have painfully learned that single credit card use opens the door to fraud and other issues due to the challenge of tracking various transactions on a single account. 

In any of these scenarios, an issue with a credit card can challenge payment obligations and affect an agency’s relationships. 

A Simple and More Efficient Approach to Account Management

In the digital age of doing business, more and more agencies are using virtual prepaid cards (accounts) to overcome long-standing issues tied to traditional payment methods. These advanced payment products offer a more flexible and effective way to manage accounts, simplify ad buys, improve transparency, remove tedious reconciliation processes, and present real-time reporting and payments.

Prepaid virtual accounts are just like debit or credit cards but are pre-funded account-based payment solutions that use a secured 16-digit number instead of a physical card. Virtual cards work just like traditional cards but without going through the process of ordering cards and waiting on the production and shipping of a physical card. 

Additionally, virtual card numbers can be programmed with custom parameters such as expiry dates, spending limits, and category information. Credit cards do not allow for the same level of customization or caps and require more time-consuming due diligence to ensure spending stays within budgeted amounts. 

Virtual prepaid accounts can be created instantaneously by the agency and used immediately. An agency can create as many virtual card accounts as they need for their business, and there is no connection with an agency’s business banking account. These self-funded solutions enable expense managers to easily decide the amount of funds allocated to each virtual card and make it easy to automate media buys and handle affiliate commissions and payables to vendors and suppliers.

Conveniently, virtual accounts can easily be reloaded in real-time at any point or set for automated, scheduled reloads. If needed, a virtual account can be frozen immediately, and a replacement account can be created instantly, giving agencies the ability to scale security to the maximum. 

Control At Your Fingertips

B4B Payments’ all-in-one, intuitive management platform gives agencies full control and the power to instantly create multiple virtual card accounts and allocate sums efficiently for different teams, campaigns, and accounts. Agencies gain a new level of transparency in tracking each account and payment made, alleviating issues associated with account reconciliation. 

The interfaces typically used for managing company credits are often clunky and do not seamlessly integrate with in-house accounting software. B4B Payments is a technology-first company, and we have designed an easy-to-use platform that flawlessly integrates into existing AR and accounting software.

Additionally, you may be interested in reading our Case Study to learn how B4B Payments partners with Imperious Media to streamline media buying and standardize reconciliation.

To find out how our solutions can help your company, contact us today!

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Incentives & Perks Newsroom

How to incentivise remote employees with prepaid cards

Even as COVID restrictions are rolled back, the likelihood is that for many people, the future of the workplace is remote.

82% of employees who currently work from home want a hybrid approach in future, and increasing numbers of businesses are redesigning office spaces, or even shifting premises entirely, to adapt to a new normal where offices are collaborative spaces, not vast banks of workstations.

Outside of the physical implications of a hybrid or remote office working approach, there’s a HR challenge to be solved: if you’re not seeing your employees in person as often (or at all), how do you keep them engaged?

It goes without saying that good management, excellent communication and a strong employer brand are important no matter where your employees are based, and a lot of these things haven’t changed much in the wake of remote working. However, many of the tools that formed the basis of pre-pandemic employee wellbeing and engagement strategies – fridges full of snacks, office pool tables and in-person team building days – aren’t as effective when your team is spread across multiple locations and are rarely all in the same place at once.

Bringing in cake for a team member’s birthday just doesn’t have the same impact it once used to. So how do you help remote employees feel part of a team, and how do you keep them engaged from a distance?

Bring office treats to your employees wherever they are

A fridge full of drinks and snacks was a common site in pre-pandemic offices, and many companies found that going beyond the basic tea and coffee station was a great way of keeping their teams happy and engaged.

For remote workers, it’s harder – they’re responsible for buying their own tea bags, and while most wouldn’t complain (particularly if they no longer have to keep their oat milk under 24 hour surveillance), it’s difficult to find a direct replacement for such a simple office perk.

Prepaid cards can be a great way of treating your employees wherever they’re based – by loading a regular “tea kitty” budget onto a card for each team member, they can choose their favoured drinks and snacks on you. Go further by offering a monthly “staff lunch on us”, or whatever other perks you provide for office-based staff, safe in the knowledge that your cards can be limited to prevent funds being spent on inappropriate things like alcohol or gambling.

Put teams in control of their equipment

If your employees work remotely, you have a responsibility to ensure they have everything they need to do their job – from a comfortable desk and chair to the right computer equipment and accessories.

Kitting out an office is enough hassle, but arranging home deliveries of equipment for large teams can be an absolute nightmare. Not everybody’s working spaces are the same, and they might benefit from slightly different equipment to make their working days more productive and less stressful.

Instead of shipping out the same equipment to each employee’s address, or managing individual orders on behalf of every employee, consider giving them control over their own equipment. Giving them a technology budget on a virtual or physical prepaid card allows them to choose the equipment that’ll work best in their space, and ensure they’re happy and comfortable wherever they work. Best of all, it’s easy to set controls on a prepaid card to ensure they’re shopping with approved suppliers.

Send perfect gifts without the guesswork

Buying gifts for colleagues is a minefield – you can sit next to somebody for five years and still know next to nothing about their personal preferences. If you’re only seeing them a day per week or less, chances are you have no idea what to pick out for them, leading to disappointment or potentially even offence.

Even “universal” gift options like food and drink can fall flat if they don’t fit a team member’s dietary or religious preferences, not to mention the risk of selecting something based on what you know about their interests (or trying to guess their clothes size!).

Even vouchers can be difficult for remote employees – buying something that can only be used in a specific chain of shops or restaurants assumes they have one nearby, and even the broadest voucher schemes limit the recipient’s choices in a way that might make picking out a gift difficult.

Instead, consider a prepaid card – funds can be loaded onto a physical or virtual Mastercard that your employees can use in millions of locations online or in store. With no limitations, each member of your team can choose a gift that’s perfect for them, with no stress and next to no admin compared to wrapping and shipping physical presents.

Give amazing rewards and incentives

Incentivising your team members with the gift of choice means they can reward themselves with whatever is most important to them. A prepaid card makes it easy to reward your team members for meeting targets, completing training, referring in new clients, or just about any other achievement you can think of.

Your prepaid cards can be branded for the specific incentive you’re running, and employees can receive their rewards instantly to spend wherever they’d like.

For larger companies, partnering with specific retailers can also help land your employees a discount when they use their prepaid card in specific stores, giving them an extra bonus on top of the money they’ve received but if far less likely to be spent on mundane stuff, like groceries!

Make office processes a breeze

While we all love a good office perk, sometimes the most effective way of engaging your teams is by making their day-to-day lives easier. This means giving them the autonomy to control how they work, supported by well-designed, efficient processes where they’re needed.

If an employee’s job requires them to make purchases on behalf of the business, convoluted procurement processes can cause unnecessary stress and hassle and reduce the mental energy they have to focus on more important projects. Similarly, staff who incur expenses when they travel for work shouldn’t have to struggle with claiming back their funds before their credit card bill is due.

A prepaid card scheme can give your teams control over their own spending whilst ensuring that your finance team remains on top of overall company spending – cards can be activated or frozen, loaded or unloaded with the click of a button.

Departmental budgets can be loaded onto a pre-paid card, either virtual or physical, so teams can handle their own specialist software subscriptions or equipment purchases, with the ability to restrict them to only using approved suppliers if required.

For employees who need travel and subsistence expenses, pre-paid cards can be loaded to a predefined top-up limit automatically, so they’ve always got available funds for fuel, food and other necessities while they’re on the road. Better still, they can upload receipts instantly through a cardholder app, so keeping on top of reconciliation is a breeze.

Launch your own company card scheme with B4B Payments

Launching your own branded prepaid card scheme is easier than you think – B4B Payments offer everything you need to get started in weeks, with a powerful management platform, physical or virtual branded cards and a user-friendly cardholder app.

To find out more about how we can help, get in touch today.