Banking as a Service, BaaS, allows a Financial Technology (Fintech) company to offer banking products and services.
Financial Institutions partner with Fintechs to provide the ability to utilize the benefits of their FDIC Bank Charter to offer checking accounts, savings accounts, debit cards, credit cards, and more.
The Fintechs offer digital banking services to their clients without acquiring a banking license of their own. The Fintechs communicate to the bank operating systems via API and/or SFTP.
Banks benefit from the acquisition of customers and their deposits. The Fintechs are the front line and create the marketing strategies to obtain customers.
The BaaS model entails fintechs, digital banks, or other third-party providers (TPP) paying a fee to access the BaaS bank platform provided by a financial institution.
The financial institution opens its APIs and/or SFTP access to the fintech or TPP by granting access to the systems and information necessary to develop banking products and offer white-label banking services.
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Acts 19:25
These he gathered together, with the workmen in similar trades, and said, “Men, you know that from this business we have our wealth.