Banking as a Service

About Banking as a Service

Banking as a Service allows non bank companies to offer banking products through licensed banks. BaaS providers handle regulatory compliance, KYC, and transaction processing while brand partners handle customer relationships. Companies including Stripe, Plaid, and Synapse provide BaaS infrastructure. Fintech companies like Chime, Robinhood, and Affirm use BaaS partners to offer accounts and cards without their own bank charters. The model has democratized financial services but creates regulatory challenges. Regulators have increased scrutiny of BaaS arrangements after compliance failures. The line between banks and technology companies continues to blur. BaaS represents the unbundling of banking: products are delivered by different companies while the underlying license remains with a regulated bank.