Banking as a Service (BaaS) is a business model that allows non-bank businesses to offer banking services without needing a banking license.
How it works
Licensed banks and fintech companies provide banking infrastructure, products, and services to other businesses. These businesses can then offer banking services to their customers through their own applications and brand.
What it allows
BaaS allows businesses to offer services like bank accounts, cards, and loans.
How it's facilitated
BaaS providers supply the technology stack and licenses needed to offer banking services. They also handle compliance, risk, and know-your-customer (KYC) requirements.
Benefits
BaaS offers opportunities for innovation and growth. For example, an airline could offer a debit card to its customers and award loyalty points when they use it.
An example of a BaaS platform is MetaCoun, which combines rounding, matching, and cashback rewards to transform everyday purchases into financial success.
