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, Podcasts

On Open Platform, BBVA’s banking as a service offering, with Susan French

  • BBVA's Open Platform is a competitive banking as a service offering in the U.S.
  • Head of product Susan French joins us to discuss what products and services the platform powers.
Zack Miller | February 27, 2020
Banking as a service

Research: List of top sponsor banks and the products and services they offer

  • Launching a financial product often requires the help of a sponsor bank.
  • Tearsheet created a list of the most active sponsor banks in the U.S. market.
Zoe Murphy | February 26, 2020
Banking as a service

Goldman Sachs is entering into the banking-as-a-service market

  • Goldman's recent investor day highlighted just how big a bet on consumer the bank is making.
  • Marcus will offer additional financial products to Goldman clients and act as a platform for other companies' products and services.
Zoe Murphy | February 03, 2020
Banking as a service

Radius Bank is the first bank to offer a savings account within NerdWallet’s mobile app

  • NerdWallet now offers a Radius savings account to its users.
  • Radius Bank partnered with the personal finance manager on this product launch.
Michael Deleon | December 06, 2019
Banking as a service

The investment case for Embedded Finance

  • Embedded finance offers a new paradigm for the future of financial services.
  • Anthemis partner David Galbraith provided his firm's view on how to best invest in the changes.
Michael Deleon | November 26, 2019
More Articles