Banking as a service - Glossary

Banking as a Service (BaaS) is a transformative concept that allows fintech companies and other third-party providers to offer financial products and services without having to establish a bank from the ground up. By partnering with traditional banks that provide secure and regulated infrastructure BaaS enables businesses to integrate financial services directly into their platforms creating seamless and convenient customer experiences. For instance consider a ride-sharing app that offers its drivers a specialized bank account equipped with instant payments savings options and financial management tools. By leveraging BaaS the app can effortlessly provide these banking features enhancing driver loyalty and satisfaction. This approach not only democratizes access to banking services but also fosters innovation in financial offerings ensuring that businesses can focus on meeting their customers' needs with agility and precision.