Banking As a Service

This book provides a comprehensive look at Banking as a Service (Baas), equipping readers with an understanding of the origins, evolution, future and applications of BaaS and the key differences across global markets. BaaS is a game changer in the financial services sector, radically transforming both how consumers experience financial products and organizational business models of delivering them. Banking as a Service cuts through the hype to provide a measured overview of BaaS, helping readers to demystify a complex, evolving field and understand its key opportunities, challenges and risks. It provides a framework for understanding where BaaS came from, how BaaS changes the economics and business models of banking products and services, its impact on key stakeholders and its key regulatory implications. Banking as a Service explains how business and operating models work, exploring different models such as interchange, deposit gathering, loan origination-to-distribute, legacy, API-first, own licence, match-making and bank service providers and offers a framework for thinking about whether or not they're sustainable. It explores how BaaS operating and business models compare in different global territories and is supported by real-world examples and cases profiling organizations such as Blue Ridge Bank and Unit, Goldman Sachs, Railsr, Starling, Solaris, Tweeq, Accendo Bank, Cacao Paycard, Flink, Airwallex, Nium, Anchor and Stitch. It also explains the differences between BaaS, embedded finance and open banking.