What is Banking as a Service (BaaS)
Banking as a Service (BaaS) is where financial institutions extend their banking infrastructure to fintech companies, enabling non-bank organizations to offer regulated, compliant, and secure financial services.
What is Fintech?
Fintech, the word, is a combination of financial technology. Fintech companies look to improve and automate the delivery and use of financial services. At their core, fintech companies help organizations, business owners, and consumers better manage their financial operations, processes, and lives by utilizing technology.
How does Banking as a Service (BaaS) work?
BaaS banks partner with fintech companies to extend banking services to unique financial services. The fintech company provides the product, marketing, and servicing, while the bank provides the banking services and compliance required by an FDIC-approved financial institution.