BANKING-AS-A-SERVISE У ТРАНСФОРМАЦІЇ СУЧАСНОЇ БАНКІВСЬКОЇ СИСТЕМИ, BANKING-AS-A-SERVISE IN THE TRANSFORMATION OF THE MODERN BANKING SYSTEM

<jats:p>The article examines the essence of the Banking-as-a-Service (BaaS) concept as a key area of the banking system's digital transformation. It analyzes modern approaches to organizing banking services based on open APIs, cloud technologies, and fintech partnerships. A comparison between traditional banking and BaaS is presented, and the competitive advantages of the BaaS model for banks, fintech companies, and end consumers of financial services are identified. The study outlines the key components of Banking-as-a-Service (BaaS)—a new type of bank business model emerging in the era of digitalization—which include a banking license and infrastructure, integration APIs, cloud technologies, risk management and compliance systems, and a platform for developing and testing financial products. An analysis of international experience regarding the implementation of BaaS by leading global banks leads to the conclusion that BaaS is gradually becoming a fundamental operating model for the modern banking system, with its development facilitating the transition from traditional banking to the platform economy. Based on this international experience, the prospects for implementing Banking-as-a-Service in Ukraine are identified. It is highlighted that the practices of Ukrainian banks indicate they currently implement primarily individual components of Banking-as-a-Service rather than a full-fledged BaaS model; the main focus is placed on developing digital service channels, integrating banking services with clients' business systems, utilizing open APIs, and implementing digital identification and the automation of financial operations. Particular attention is paid to the potential for utilizing BaaS within the Ukrainian banking system, taking into account digital transformation processes, the development of open banking, and intensifying competition from the fintech sector. Directions for the further development of BaaS are proposed, focusing on upgrading banking digital infrastructure, enhancing API integration, strengthening cybersecurity and regulatory frameworks, and deepening cooperation between banks and fintech companies.</jats:p>