GLOSSARY: Banking-as-a-Service (BaaS)

What is Banking-as-a-Service (BaaS)?

Banking-as-a-Service (BaaS) enables regulated banks and financial institutions to provide financial products and services to non-financial businesses using APIs.

How does BaaS differ from Embedded Lending?

BaaS is the back-end technology stack that supports the financial service offering and regulatory compliance.

Embedded lending is the technological layer on top of the BaaS stack, enabling the end-user’s interaction with the financial product or service.

What are the benefits of BaaS?

  1. Speed to Market: Banks and financial institutions can quickly implement their financial services within no-financial journeys.

  2. Innovation: BaaS stimulates innovation in the financial services arena.

  3. Customer Experience: By integrating banking products and services into the customer journey, companies can provide customized and seamless customer financial experiences.

  4. Cost Efficiency: By leveraging the existing infrastructure of banks using BaaS, companies can minimize the cost and complexity of offering financial services to their customers.

Are you interested in the embedded lending component of BaaS? Explore our white-labeled embedded lending solution.

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