Guides and reports
Banking as a service: What is it and how to select the right provider?
Discover what banking as a service (BaaS) is, how it enables platforms to meet the financial needs of small and medium-sized businesses, and how it can drive revenue and loyalty.
The financial landscape has shifted for small and medium-sized businesses (SMBs) thanks to platforms and marketplaces. Without the necessity to become a bank, they are able to offer their SMB users financial services and support themselves thanks to banking as a service (BaaS).
With BaaS, platforms can integrate financial services into their offerings - something which is in high demand. 64% of SMBs in 2022 alone wanted platforms to offer business accounts, cash advances, and issued cards rather than turning to banks.
Rather than taking the one-size-fits-all approach often adopted by banks, which isn't well suited for lower margin SMBs, platforms can cater to their dynamic needs with BaaS. And they’re better equipped to do so. They can leverage the relationships they’ve already nurtured with their SMB users and their in-depth understanding of user challenges to deliver highly tailored and efficient solutions.