BAS market is rapidly evolving and therefore has options for companies that want to rapidly spin up new financial services by taking advantage of these bank-in-the-box APIs.
We recently took a look at who the ideal customers and partners are for banking-as-a-service startups… and today we’ll take a deeper look at the different flavors of BaaS and how they stack up. Huh.
Some BaaS players in the market have partnered with bank partners to offer API access to their services, others offer software and are running marketplace models to match community banks and fintechs, and at least At least one startup has bought a bank to build it. Customers can access own Banking API.
If you’re looking to build a new fintech app or add banking, debit cards or other financial services to your existing business, it’s important to know how each of these competitors works with customers and bank partners.
Turnkey Banking as a Service
The simplest – and most common – BaaS offering is one that brings together everything a company needs to launch financial services and makes it available through an API. Companies that provide these types of services include synapse, Unit And deeply concerned, among others.
Typically, these BaaS providers make their money by charging customers platform fees and/or sharing revenue from interchange or other fees generated by the customer’s end product or service.
For fintech companies just starting out or vertical SaaS players looking to launch financial services without building a whole new fintech team, build, test, and deploy with little hassle from getting into their API or set of APIs. may be a low cost method.