The BaaS market evolving rapidly, as are the options for businesses that want to quickly launch new financial services by leveraging these Bank-in-a-box APIs.
We recently took a look at who are the ideal clients and partners for banking as a service startups… And today we’re going to dig deeper into the different flavors of BaaS offerings and how they rank.
Some of the BaaS players in the market have partnered with banking partners to offer API access to their services, others are offering software and using a market model to match community banks and fintechs, and at least one startup has bought a bank to build its Customers of their own banking API can access.
If you are looking to build a new fintech app, or if you want to add banking, debit cards, or other financial services to your existing business, knowing how each of these competitors is positioned to work with customers is critical. and banking partners.
Turnkey banking as a service
The simplest – and most common – BaaS offering is one that brings together everything a business might need to deploy financial services and makes them available through an API. Companies providing these types of services include Synapse, Unit, and Bond, among others.
Typically, these BaaS providers earn their money by charging platform fees to customers and / or sharing the interchange revenue or other fees generated by the customer’s end product or service.
For new fintech companies or vertical SaaS players looking to launch financial services without creating a whole new fintech team, connecting to their API or a set of APIs can be an inexpensive way to build, test and deploy with little hassle.