Railsbank announces new products to help nonfinancial firms embed finance

• Railsbank is launching two new products to capitalize on nonfinancial firms’ demand for integrating financial products.
• And more Banking as a Service providers will likely follow suit.
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The UK-based Banking as a Service (BaaS) provider announced two new products at this week’s Singapore FinTech Festival, per a press release seen by Insider Intelligence.

Insider Intelligence

The new OpenRailz API will allow financial services providers to plug their products, such as bank accounts and payments, into the Railsbank platform. These products will then be available on the newly launched Houston no-code platform, where nonfinancial firms can simply point and click the financial products they want to integrate. 

With the launch, Railsbank can capitalize on nonfinancial platforms’ demand for integrating financial products, as BaaS providers shift to cater to this sector. BaaS providers originally focused on helping existing financial service providers add more products, like Solarisbank has done with challenger bank Tomorrow and trading app Republic.

But nonfinancial firms are expected to increasingly embed financial services to add client value and new revenue streams, with the embedded finance market set to increase 10-fold in the next five years, reaching $230 billion by 2025. Recent examples of embedded finance include Apple leveraging Green Dot for payments and Shopify launching merchant bank accounts.

By moving from helping fintechs and incumbents build additional financial products to positioning itself as the middleman between nonfinancial firms and financial service providers, Railsbank stands to capitalize on this rising demand. More BaaS providers will likely follow suit over the coming months and start targeting nonfinancial players. 

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