YES Bank has partnered with Banking-as-a-service (BaaS) start-up, Falcon, to foray into the embedded finance market.
The BaaS model is reconfiguring the banking value chain by enabling third-party distributors to offer banking products and services.
"The partnership with Falcon will enable YES Bank to provide customers with tailor-made financial solutions by leveraging Falcon's wide suite of products, backed by state-of-the-art technological infrastructure," said Falcon in a media statement.
"Our partnership with Falcon aligns with this approach as it empowers the Bank to create innovative propositions within shorter time periods without compromising on the quality and convenience that the Bank is known to bring forth across all its offerings,” added Anita Pai, chief operating officer (COO), YES Bank in a statement.
Founded by entrepreneurs Priyanka Kanwar and Prabhtej Bhatia, the BaaS start-up offers a stack to build bespoke cards, payments, accounts, and lending products to financial institutions and tech companies. Backed by investors from the US, India, and the Middle East, it aims to tap into the $30 billion market opportunity.
“We’re already working with the bank on introducing several innovative use cases and product lines,” Prabhtej Bhatia, co-founder of Falcon added.
Yes Bank reported a 32 per cent year-on-year (YoY) increase in the net interest income (NII) for the second quarter of the current financial year (FY) 2023.