Metropolitan Commercial, a leading financial institution, has announced that it will be winding down its Banking as a Service (BaaS) programme. The programme, which allowed third-party companies to offer banking services using Metropolitan Commercial’s infrastructure, will be phased out over the next few months.
What is BaaS?
Banking as a Service (BaaS) is a model that allows non-banking companies to provide financial services to their customers. By partnering with a traditional bank, these companies can offer services such as payments, loans, and savings accounts without having to build their own banking infrastructure.
Reasons for winding down the programme
Metropolitan Commercial cited a shifting regulatory landscape and increased competition as key factors in its decision to wind down the BaaS programme. The company stated that it wants to focus on its core banking business and ensure compliance with evolving regulations.
Impact on current partners
Current partners who are using Metropolitan Commercial’s BaaS platform will be given a transition period to find alternative banking partners. Metropolitan Commercial has assured partners that they will receive support during this transition phase to minimize any disruptions to their services.
Future plans
Although Metropolitan Commercial is winding down its BaaS programme, the company remains committed to innovation and exploring new partnerships in the financial services industry. It is actively seeking opportunities to collaborate with fintech companies and other non-banking entities to drive digital transformation and improve customer experiences.
Conclusion
The decision to wind down its BaaS programme is part of Metropolitan Commercial’s strategy to streamline its operations and focus on its core banking business. While this may come as a disappointment to current partners, the company is dedicated to supporting them through the transition period and remains open to future collaborations in the financial services sector.