Banking as a service

The Tearsheet Guide to Non-Intuitive and Interesting Uses for Banking as a Service

  • Banking as a Service technologies have moved beyond powering upstart digital banks.
  • In Tearsheet's report, we look at various new use cases for the emerging technology.
The Tearsheet Guide to Non-Intuitive and Interesting Uses for Banking as a Service

As Banking as a Service emerges as the next big thing in fintech, most people consider challenger banks as the most relevant application of this new set of technologies. With some investigation and discussions with top industry players like Cambr, BBVA, Railsbank, and Clearbank, we’ve come to realize that there are a number of other less explored usages of BaaS which can actually be more significant than launching a challenger bank.

These non-intuitive uses of BaaS are great examples of the power of embedded finance and the changing nature of financial services. Please see Tearsheet’s Banking as a Service Buyers Guide for more in-depth information about the technology stack and the leading players.

Before we dive deeper into the subject, it’s worth defining BaaS. There are varying definitions, so what is banking as a service? Banking as a service enables the digital delivery of banking services via APIs. In this model, at least one sliver of the banking technology stack gets integrated into a third party app or website. Most of the time these technologies are delivered to a company that doesn’t have a banking license, embedding banking services in a non-bank. A retailer like Walmart can turn to a BaaS provider like Green Dot to launch a debit card that encourages shoppers to deposit their paychecks directly on the card, save a portion, and receive rewards.

Here are some compelling, yet less run-of-the-mill uses for banking as a service across various industries.

(Subscribers to our Outlier Membership Program have access to the full report).

Banking as a service

Considered as a challenger bank, Green Dot would be one of the biggest

  • Green Dot's consumer bank and BaaS are a 1-2 punch.
  • On an end-user basis, it could be considered the largest challenger bank in the world.
Michael Deleon | November 11, 2019
Banking as a service

Tearsheet Embedded Conference Preview: Dov Marmor, Green Dot

  • Green Dot works with brands like Walmart and Uber to create financial products.
  • The firm's head of banking as a service will speak at Tearsheet's Embedded Conference.
Michael Deleon | November 07, 2019
Banking as a service

Tearsheet’s Embedded Conference Preview: Ahon Sarkar, Cambr

  • Cambr marries StoneCastle's banking deposit network with Q2's banking technology.
  • VP Ahon Sarkar is speaking at Tearsheet's Embedded Conference.
Michael Deleon | November 01, 2019
Banking as a service

Tearsheet’s Embedded Conference Preview: Richie Serna, Finix

  • Finix lets software companies own, manage, and monetize their payments.
  • CEO Richie Sarna is speaking at Tearsheet's Embedded Conference.
Michael Deleon | October 30, 2019
Banking as a service

Tearsheet’s Embedded Conference Preview: Sankaet Pathak, Synapse

  • Synapse provides a banking as a service platform to hundreds of financial apps.
  • CEO Sankaet Pathak is speaking at Tearsheet's Embedded Conference.
Zoe Murphy | October 29, 2019
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