THE global rise of Banking-as-a-Service (BaaS) has been a transformative force in the financial industry, reshaping the way institutions interact with customers.BaaS, powered by application programming interfaces (APIs), allows nonbanking entities to embed banking products into their platforms. This innovation has democratized access to financial services via inclusion and convenience for individuals and businesses worldwide.The shift is supported by increasing digitalization, open banking regulations, and a demand for more personalized and efficient banking experiences. Across the globe, the adoption of BaaS has enabled fintech (financial technology) companies and traditional banks to collaborate in ways that were once unimaginable.Open bankingIn Europe, for instance, the introduction of the Revised Payment Services Directive set the stage for open banking, compelling banks to share customer data with authorized third parties via APIs. This regulation spurred innovation and competition, enabling smaller fintechs to develop customer-centric solutions.In the United States, tech giants and startups alike have embraced BaaS to embed financial services into their platforms, allowing customers to make payments, apply for loans or manage accounts without physically stepping into a bank.Asia, with its booming digital economy, has seen a rapid uptake of BaaS as well, particularly in China and India, where the integration of banking services with super apps and digital wallets has transformed the way millions of people handle finances.Southeast Asia is emerging as a center for BaaS innovation. With a young, tech-savvy population and a significant unbanked demographic, countries like Indonesia, Vietnam and the Philippines present immense opportunities for digital transformation. Governments and financial institutions in the region are prioritizing financial inclusion through digital solutions.CollaborationIn the Philippines, where a large portion of the population remains unbanked, BaaS is increasingly seen as a means to bridge this gap and foster economic empowerment. A prime example is the collaboration between RCBC, APIwiz and Hungry Workhorse. These organizations have joined forces to redefine banking and financial services for Filipinos.RCBC, one of the country's leading financial institutions, has embraced a forward-thinking approach by leveraging APIwiz's technology to manage and govern APIs in real time. This enables RCBC to adopt a composable API model, allowing the bank to comply with regulatory requirements, compete in an evolving market and collaborate with ecosystem partners to deliver unprecedented services to customers.Lito Villanueva, RCBC executive vice president, and chief innovation and inclusion officer, emphasizes the transformative potential of these efforts. By leveraging composable APIs, RCBC aims to transition into platform banking, which allows it to act as a hub for various financial and nonfinancial services.Customers, in turn, benefit from a seamless and integrated experience, where they can access services ranging from loans and payments to wealth management on a single platform. This innovation aligns with RCBC's mission to make banking accessible to Filipinos globally, ensuring no one is left behind in the digital age.The foundation of this transformation lies in APIs, which by APIwiz founder and CEO Darshan Shivashankar describes as the "digital glue" of modern banking. APIs facilitate the integration of banking systems with external platforms, enabling an open banking ecosystem that fosters innovation and efficiency.However, as the number of APIs continues to grow, managing them effectively becomes a challenge. APIwiz addresses this by providing an end-to-end platform that simplifies, standardizes and automates API delivery, creating a robust infrastructure for RCBC's digital evolution.John Alabastro, RCBC IT shared services group head and CTO, highlights the role of service meshes in facilitating the bank's transition from legacy systems to microservices-based core platforms. This approach not only ensures smoother integration but also enhances scalability and flexibility.Over time, this shift to microservices will enable RCBC to fully realize the potential of platform banking, offering a more dynamic and responsive ecosystem for customers.The benefits to customers are manifold. For one, BaaS enables faster and more convenient access to financial services. Through RCBC's platform, customers can perform transactions, access credit or invest with just a few clicks, eliminating the need for physical visits to a bank.Moreover, the integration of various services on a single platform enhances user experience, providing a holistic solution to customers' financial needs. The open banking model also fosters competition, leading to better products, lower fees and more innovative offerings.In addition, BaaS contributes to financial inclusion by extending banking services to underserved populations. For millions of Filipinos without access to traditional banking, digital platforms powered by RCBC and its partners provide an entry point to formal financial systems.Kay Calpo Lugtu is the chief operating officer of Hungry Workhorse, a digital and culture transformation firm. Her advocacies include food innovation, nation-building and sustainability. Email her at kay.lugtu@hungryworkhorse.com.