Introducing Wallets, a simple way for your customers to store and move money. Learn more.
Question

What is banking as a service?

Last updated:

March 5, 2024

2 minutes

Answer

Banking as a service is a way for tech companies to partner with banks in order to make the bank’s financial products (e.g., bank accounts, credit cards) available to their customers.

Under this partnership model, a chartered bank allows a tech company to market the bank’s products under the tech company’s brand name. For example, although it is not a bank, Apple makes the Apple Card (a credit card) available to its customers. In order to do so, Apple partners with Goldman Sachs, a bank. (article continues below)

Although it’s possible to partner directly with a bank, many companies that make financial products available to their customers choose to do so with the help of a banking-as-a-service (BaaS) platform, which facilitates the partnership between the bank and the tech company.

Originally published:
July 17, 2023

Recommended articles

How do companies make money from embedded finance?
How do I earn revenue from interest on my customers’ deposits?
What are the different ways to launch embedded finance?

Bring financial features to life and start building — today