Banking as a Service (BaaS)

Banking as a Service (BaaS) refers to the practice of offering banking services through an Application Programming Interface (API) model. It allows non-banking entities, like fintech companies or businesses in other sectors, to integrate banking functionalities into their own products or services, without having to become licensed and regulated banks themselves. BaaS providers, typically established financial institutions, expose their banking infrastructure via APIs, providing access to core banking services such as account management, payments, transactions, and compliance.

By leveraging BaaS, companies can enhance their customer experience by seamlessly integrating banking services into their platforms. This offers customers the convenience of performing banking tasks within the same ecosystem they are already engaged with, eliminating the need to switch between different applications or platforms. BaaS also enables businesses to build innovative and customized financial solutions that cater to specific market needs. Furthermore, it reduces the time and costs associated with building banking infrastructure from scratch, allowing companies to focus on their core business while benefiting from the expertise and security provided by established banks.