How We Work
Open banking enables third-party financial organizations to provide consumer or business transactions, banking, payments, credit, and other financial banking services.
This is done using modern, best-in-class technology such as APIs or application programming interfaces. The purpose of open banking is sharing bank-like functionality with financial technology (fintech) and non- financial companies so that experiences can be tailored to fit the diverse needs of end users. At Evolve Open Banking, we offer a secure banking as a service (BaaS) environment, which connects end users to platforms and third parties while complying with banking regulations.
Our mission is to enable the power of banking for innovators, entrepreneurs, and consumers.
Evolve Open Banking, a division of Evolve Bank & Trust, is recognized as a global leader in the payments and “Banking-as-a-Service” (BaaS) industry, delivering unique solutions and innovative technology strategies to our partners.
Our best-in-class experts understand the rapid advances in the financial industry and, most importantly, we know consumer needs change constantly. Today’s end users expect speed, efficiency, and security in every transaction and the flexibility to choose transaction methods that work for them.
Open Banking with Evolve
Open banking has gained popularity because it can increase the speed and efficiency of financial transactions and enables a variety of applications to organize and manage finances in new and engaging ways for end users.
Open banking relies on technology such as APIs, which enable one service provider’s software to speak to another. In most cases, this means securely communicating information from banks to the third party fintech company whose app is used by end users to manage finances and make payments. Sophisticated technology is essential for third parties to share the necessary information to the bank from their company.
Open Banking and BaaS are related. BaaS drills down further into the concept of Open Banking. BaaS is the products financial institutions offer to non-financial and financial companies to enable banking services. BaaS solutions allow the third-party company to access the functionality of the bank.
For this reason, open banking can solve many problems for consumers and businesses. The security of the digital economy in open banking addresses the issue of lack of trust in banks. It also can increase the speed to market of fintech businesses.
Card issuance is one component of a modern approach to financial management within Open Banking. Evolve’s Card issuance solution creates, issues, and manages credit and debit cards. These cards can either be completely digital or also have a physical card component.
A benefit of issuing a virtual-only card is the ability to prevent fraudulent transactions via dynamic card number provisioning or other digital fraud prevention features.
Benefits of Open Banking With
Evolve Bank & Trust
Open banking offers benefits that enhance financial literacy for end users and provide solutions for businesses. With the right tools, organizations can leverage open banking to improve financial management and deliver seamless service integration.
- More Effective User Experiences
- Customer-Focused Products and Services
- Improved Customer Service & Trust
- Customization Options
- Improved Financial Management
- Enhanced Security
- Retain and Engage End Users
- Faster and Smoother Transactions
- Opportunities to Diversify Offerings
- Engage and Retain Customers
- Data-Powered Personalization
- Increase Conversions
- Easier Checkout Flow
- More Payment Options
BaaS vs Open Banking
Banking services have changed a lot in a short time thanks to the ever-increasing rate of technological innovation. There are so many new terms that seem similar but have different meanings, especially relating to open banking. Learn about the similarities differences between open banking, embedded finance and banking as a service (BaaS). Plus, we break down some examples of use cases of BaaS and open banking so you can better understand the benefits.
Our BaaS Environment
All financial services are maintained by a secured environment. As a BaaS provider, we guide our customers through the steps of creating their own secured financial environment to support various use cases.
Our solutions are designed to be flexible, so they can be tailored to solving the financial needs of your End Users.
Third Parties have a direct relationship with Evolve.
May be any of the following types:
- ISOs (Independent Sales Organization)
- TPPs (Aggregator Payment Processor)
- TPSs (Aggregator Sender)
A company that wants to utilize Evolve solutions for their End Users.
May be any of the following types:
- FinTechs
- Merchants
Typically authorizes Evolve to open accounts through a Platform’s onboarding process.
May be any of the following types:
- Consumers
- Businesses
Forging powerful alliances to drive innovation and improve customer experiences.
Partnerships deliver financial solutions which are:
- Smarter
- Faster
- More personalized
Open Banking, Embedded Finance and Banking as a Service (BaaS): What’s the Difference?
Open Banking allows banks to host accounts and provide transaction methods for financial and non-financial businesses to embed into mobile applications. Banks provide a suite of Banking as a Service (Baas) products using technology like APIs. These technologies enable the capability for other organizations to embed financial functionality into other products and services
Let’s look at all three in more detail.
An example of open banking would be a personal finance app enabled by banking techonology that lets customers view insights into their monthly spending online.
For example, a department store would like to issue a branded credit card for their store with different features, rewards, and perks. The department store can partner with a bank to issue the card and obtain end users without becoming a financial institution themselves. The department store would still be heavily involved in compliance and regulatory obligations, but the banking piece is managed by the bank.
The concept of embedded finance can create a personalized financial experience for dedicated end-user bases of existing businesses that adds value to the customer.
An example of BaaS is a car company offering financing directly through its website in partnership with a traditional bank. It can provide all the necessary services under its own brand while maintaining compliance with banking regulations and without the burden of registering and maintaining its own financial institution charter.
BaaS Use Case Examples
There are four main users of BaaS and open banking: traditional banks, fintechs, non-fintech companies and end users. Traditional banks have the necessary licensure to provide core financial services which allows fintechs and non-fintechs to embedded BaaS functionality into their user experiences. Here are some use cases for BaaS.
Evolve is proud to be a principal member of both Mastercard and Visa and a Member FDIC.
MasterCard® is a registered trademark of MasterCard International Incorporated. Visa® and Visa Signature® are registered trademarks of Visa International Service Association and used under license.
Interested in becoming an Evolve Partner?
To find out more about how we can support your business and meet end users’ needs at Evolve Open Banking, contact us today.
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