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

Non intuitive use case for Banking as a Service: Autonomous Finance

  • After the advent of digital, banking is still, at its core, a ledger.
  • Autonomous finance offers a reimagined idea of banking.
Meir Leff | October 11, 2019
Banking as a service

Non intuitive use case for Banking as a Service: Payroll Management

  • Payroll Management might not be a field that springs to mind when discussing Banking as a Service.
  • There's a strong use case payroll firms can adopt by using modern fintech.
Meir Leff | October 10, 2019
Banking as a service

BBVA Open Platform powers Catch’s new banking services

  • This tie up exemplifies a growing number of Banking as a Service implementations.
  • BBVA's Open Platform is looking to do more than just power challenger banks.
Zoe Murphy | September 19, 2019
Banking as a service

BaaS Company Spotlight 7/8: BankMobile — A complete white label banking solution

  • BankMobile is one of the biggest digital bank brands in the US.
  • With T-Mobile MONEY as its first BAAS client, the company wants to do more partnerships.
Meir Leff | August 08, 2019
Banking as a service

BaaS Company Spotlight 6/8: Cross River — A Regional Bank Providing Specialized BaaS Services

  • Cross River's roots are in community banking.
  • With a banking license, the company has emerged as a leader in banking as a service.
Meir Leff | August 06, 2019
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