We are at an inflection point in the evolution of value chain financing—and SaaS is no longer just an enabler; it’s the strategic engine powering the next generation of financial services.
Banks are being asked a fundamental question: Can you finance the real economy at the speed and scale it demands today? For too long, traditional infrastructure and fragmented systems have created friction—especially in servicing the financing needs of small and medium-sized enterprises (SMEs), the lifeblood of global trade.
SaaS platforms are rewriting that narrative. And forward-looking financial institutions are taking note.
From Support Tool to Strategic Driver
The old view of SaaS—as a back-office efficiency play—is outdated. Today, SaaS platforms are central to how financial institutions engage clients, assess risk, deliver products, and scale innovation. In a report by Mckinsey, the industry’s average product release time has ranged from nine to 24 months—a glacial pace compared with that of fintech companies, which can deploy code daily and run dozens of A/B tests a month. SaaS platforms offer the agility, embedded intelligence, and interoperability that legacy core systems simply cannot match.
With financial services SaaS projected to surpass US$130 billion by 2027 (up from US$54 billion in 2022), this is not just growth—it’s a structural shift. The most agile banks are already evolving from lenders into ecosystem orchestrators with the potential to achieve a 40% increase in profitability, leveraging SaaS to build smarter, connected financing journeys.
Embedding financing directly: A $5 Trillion Opportunity
The global SME financing gap stands at over US$5 trillion. That’s not just a market failure—it’s a missed opportunity. SaaS platforms allow banks to close this gap not by taking on more risk, but by making better decisions faster, and embedding financing directly into supply chain workflows. 44% of SMEs now prefer digital-first financial solutions, often integrated into their existing business platforms.
We’ve seen what this looks like in practice: faster onboarding, smarter credit analytics, and financing models that adapt to dynamic supplier-buyer relationships. In a report by Mckinsey, banks that implement an end-to-end automation in their lending processes can reduce operating expenses by up to 20-40%.
Compliance as a Competitive Advantage
The most underrated strength of a SaaS platform is its ability to embed local regulatory requirements seamlessly into global workflows. This transforms compliance from a cost center into a strategic differentiator. In a study done by Thomson Reuters Institute in 2023, nearly two-thirds (65%) of respondents believe streamlining and automating manual processes would help reduce the complexity and cost of risk and compliance. By integrating with local tax, KYC, and data systems, SaaS enables financial institutions to scale with confidence—without being slowed by complexity.
Building Intelligence into the Fabric of Finance
This is not just about speed—it’s about intelligence. The integration of AI and machine learning into SaaS platforms is enabling financial institutions to move from reactive to predictive decision-making. We’re no longer asking, “Is this borrower creditworthy?” We’re asking, “How will this borrower behave six months from now?”
The Experience Economy Comes for Banking
We are in an experience economy where corporate clients and SMEs expect the same ease, transparency, and immediacy from their banks that they get from consumer platforms. Companies leading in customer experience achieve 190% higher three-year revenue growth compared to their peers.
SaaS platforms allow financial institutions to deliver banking that feels modern, intuitive, and embedded in the client’s business flow.
Platform Thinking Requires Partnership Thinking
The next leap will not be made alone. Banks must partner with fintechs not as vendors, but as co-creators. This shift in mindset—from procuring technology to co-building solutions—is what separates market leaders from the rest.
At TASConnect where co-creation is at the core of what we do with our enterprise and banking clients, we see this transformation firsthand: banks who embrace platform thinking are able to move faster, experiment more boldly, and capture new value streams in supply chain finance.
Don’t Digitise the Old—Redesign the Future
Here’s the truth: digitising outdated models won’t solve tomorrow’s problems. Financial institutions need to fundamentally rethink their role in the value chain. This means reimagining how capital flows, how risk is shared, and how trust is built—using the power of SaaS.
Those who lead this charge will not only serve the market better—they will shape it.
Aditya Sharma is a financial services expert with over 25 years of international experience in banking, consulting, and digital transformation. As Head of South Asia and Financial Institutions at TASConnect, he focuses on building strategic partnerships and integrating financial institutions to enhance supply chain and working capital solutions.
With inputs from Parvez Murshed, Senior Project Advisor-FIs and Banks at TASConnect. Parvez is a seasoned banker with more than 25 years’ experience, specialising in trade and supply chain finance as well as transaction banking through various leadership roles within Citigroup in Asia.
