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Software-as-a-Service: A Win-win for Lenders and Customers

Discover how SaaS-based Analytics has become a trending choice for better lending in 2023

Banks and NBFCs have shifted towards the Software as a Service (SaaS) model, in which the software is licensed on a subscription basis. This service’s benefits include reduced deployment costs for new software, reduced time to market for new products, and improved customer experiences.

Banks and NBFCs need the service to improve business processes faster. Before the Covid19 breakout, SaaS was gaining popularity because of subscription-based trends. It provides greater flexibility and security.

The Trend of Subscription-based Services in Finance

Subscription-based software lets customers simplify procurement. Moreover, a lower cost of entry is highly attractive. NBFCs and Fintechs can now avail of advanced analytics systems at the lowest costs.

SaaS-based Asset Classification and Predictive Analytics can be a boon for Fintech and NBFC lenders with lower lending capacities. Data security is the only factor that downplays SaaS analytics solutions.

Easy-to-Implement Cloud-based Solutions

From a high degree of on-premise and manual efforts to install and manage applications, the SaaS model allows for software applications to be hosted in the cloud, eliminating the need for local storage.

The cost of acquisition and the need for software management is also minimized. At one time multiple users can use the model remotely and also offer more robust and secure data backups.

Pay Only for Data Analytics Services You Need Most

The lower cost of entry means that customers can categorize software investments as operating expenses rather than capital expenditures. Scalability benefits offered by SaaS mean that monthly or annual licenses can be easily customized based on changing business requirements.

Since most activity is done from the data center, a lender's ability to launch and scale digital applications as part of their digital transformation strategy, is gradually enhanced.

Yes, or No to SaaS?

There is a lot of activity and some hype surrounding SaaS, but it is not the only option in the market and is not an entirely straightforward service.

There are many factors to consider.

On the positive side, SaaS can help a large enterprise achieve greater goals like the speed and agility of a much smaller company; thanks to low upfront investments, rapid implementation, and easy scalability.

Also, it is a way to make a cost advantage in the short run, although the long-term cost savings are less clear. But, the same doesn’t stand for smaller lenders, NBFCs, PPIs, and Neobanks.

Yet perhaps the biggest obstacle in the journey to SaaS adoption in the large enterprise space is the capability gap between established enterprise applications and still-maturing SaaS applications.

Explore our cutting-edge SaaS-based advanced analytics products and connect with D2K fintech experts to discover the solution that best meets your banking needs.


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