Canada-based Zum Rails has launched an AI-powered Banking-as-a-Service (BaaS) project to offer enterprise clients comprehensive banking services. This offering will enable companies to provide a suite of banking services directly to their customers, utilising the same platform that currently powers their flexible payment capabilities.

The newly appointed head of BaaS at Zum Rails will lead the initiative of introducing North America’s first AI-powered BaaS platform that leverages Open Banking and helps businesses stay ahead of regulatory requirements. Unlocking BaaS potential The introduction of BaaS presents a significant opportunity for consumer-facing companies by enabling them to offer bank-like services such as card issuing, transaction settlement, and real-time fraud assessment. These services can enhance customer experience and drive revenue growth.

However, implementing BaaS poses challenges, including the need for multiple integrations and managing risk at payment speed. The company’s new BaaS head will oversee the development and rollout of Zum Rails’ BaaS product roadmap, focusing on transaction settlement, identity validation, and real-time fraud assessment. His goal is to integrate these functionalities with Zum Rails’ existing payments offerings, allowing companies to comply with Open Banking timelines and leverage AI for risk management.

Since 2019, Zum Rails has demonstrated that companies can adopt any payment rails, including instant payments, without waiting for regulatory infrastructure. Now, they aim to extend this capability to bank-like services. With their new hire's expertise, Zum Rails plans to address key challenges in the North American market, specifically regulatory delays in Open Banking and the need for multiple vendors.

By overcoming these hurdles, they aim to help non-banks harness BaaS, personalise client experiences, enhance customer relationships, and accelerate revenue growth. .