New research from Datos Insights reveals how building vs. buying a core platform has unlocked a competitive advantage for the fintech
Current, a leading consumer fintech banking platform transforming financial access for everyday Americans, announced the publication of a new case study from Datos Insights, an advisory firm providing mission-critical insights on technology, regulations, strategy, and operations, which concluded Current’s strategic decision to build its own core banking technology has created a sustainable, competitive advantage in the market.
The study, titled “Foregoing BaaS: How Owning the Core Fuels Current’s Success”, identifies and details how Current’s proprietary cloud-native core banking platform enables the fintech to develop innovative products faster than competitors, maintain lower operating costs, deliver superior member experiences, and provide an unmatched ability to efficiently scale as well as a faster path to profitability.
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“Getting a fintech company to market is faster when you rely on financial infrastructure partners, but it becomes much harder to scale or differentiate that way,” said Trevor Marshall, CTO and Co-Founder, Current. “To achieve scalable growth in this industry, focusing on your own technology is critical. By doing so, we not only gain operational and financial efficiencies but, more importantly, deliver greater value to our members. With full control over our tech stack, we can design products that seamlessly work together, ensuring the best possible experience for our members, who are at the heart of everything we do.”
Key insights from the study include:
Datos Insights concluded Current’s decision to build its core banking technology has created a competitive advantage.
- Core Technology Will Become an Investment Priority: The success of Current’s approach could drive increased investment in proprietary core banking technologies across the industry
- Owning Financial Infrastructure Creates a Technology Moat: As successful companies like Current demonstrate the advantages of owned infrastructure, the gap between market leaders and followers is likely to expand
- Real-Time Processing is a Differentiator: Current’s platform enables instant updates across all accounts and products, contrasting with traditional batch processing systems
- Advanced Data Architecture and AI-Powered Decisioning Are Critical for Managing Risk: Initiatives like the implementation of ISO 20022 for card processing allow for richer data exchange and more sophisticated risk modeling than legacy systems. Integration with Google Vertex AI enables instant, accurate predictions for risk management and fraud prevention
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The study also highlights Current’s Build Card, developed in collaboration with Cross River Bank, as an example of how real-time data processing and a compliant, technologically innovative approach to the bank-fintech relationship model, enables responsible products that truly expand consumer access. The card’s dynamic credit limit updates instantly as transactions occur across multiple accounts, allowing full access to deposited funds while maintaining security—a feature impossible with traditional banking infrastructure.
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“The proprietary core banking technology that Current has built and its capabilities really stand out in the market,” said David Shipper, Strategic Advisor at Datos Insights. “Their experience demonstrates that while building a proprietary core platform requires significant upfront investment, it can deliver compelling long-term advantages in cost structure, innovation capacity, and member experience. We could see a stratification in the market, with companies that own their technology stacks enjoying sustained competitive advantages.”
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source – businesswire
