Diverse, flexible, powerful … and evolving
Risk as a service (RaaS) is on the rise. Most customers now expect risk technology providers to offer a RaaS option – in some financial sectors and geographies it is ubiquitous. The evolving nature and
structure of markets in different jurisdictions has also had a considerable influence on the take-up and adoption of RaaS. US institutions, for example, have tended to use it more than their European or Asian counterparts.
The range of RaaS solutions – and the providers offering them – is diverse. Most vendors offer some form of RaaS, depending on their size and business focus, but not all offerings are the same: some work, some don’t. Even in its most basic form RaaS offers Financial Institutions (FIs) important advantages over on-premise software, including flexibility, shorter implementation times, and the chance to offload maintenance responsibility to the RaaS provider.
For vendors, RaaS is a growing opportunity and a requirement – demand is pushing those that
don’t already offer a RaaS option to develop one to avoid losing business. But this isn’t necessarily a straightforward task: simply making on-premise offerings available as cloud-based applications – the path taken by many vendors – can result in solutions that scale poorly. Partnerships and acquisitions are vital so that vendors can address any weaknesses and develop truly competitive products.
This report gives an overview of the RaaS landscape – looking at the types of RaaS that are available, where and why they are popular, and what FIs should consider when selecting a RaaS solution. It then considers the rich and varied vendor landscape, looking at some of the mistakes that vendors make, and how partnerships with other entities, including FIs themselves, could shape the future of this diverse and expanding market.