Fintech startups are pivoting from product-centric to service-as-a-service (aaS) models to maintain SaaS margins while expanding into verticals beyond their origin segment. Sifted reports that this shift unlocks cross-sell opportunities with existing customer bases and reduces customer acquisition costs relative to traditional software licensing.
The aaS model allows fintech founders to compete with larger incumbents on agility while maintaining pricing power. Early examples show fintech players adding compliance, risk, and data layers to core product offerings, creating modular stacks that Fortune 500 institutions can adopt incrementally.