Banking as a Service, or commonly referred to as “BaaS,” is an ever-expanding sector of the financial world. You may be wondering just exactly what BaaS is. Banking as a Service has essentially enabled the modernization of banking. Through the latest technological advancements, BaaS solutions enable third-party financial organizations to provide consumer or business transactions, banking, and other financial services from banks. Like the way that websites are hosted on the internet, financial services offered by apps are hosted by banks like Evolve. Rather than hosting website data, we host, store, and maintain financial data to ensure tech startups or industry titans are sending and receiving your money in a way that is compliant with federal regulation.
As a financial “host” our role is to provide the technology and banking industry knowledge to allow companies, like fintechs, to quickly add financial services to their new or existing app and focus on a seamless user experience. Each company has unique expertise and industry knowledge – but banking can be complex due to its high levels of regulation. BaaS banks like Evolve offer products such as debit cards, accounts, transactions, etc. and partner companies can choose and combine solutions fit their use case.
You may not have noticed it, but technology powered by BaaS is all around you. Do you use a budgeting app – one that connects to your accounts or has financial tools? Likely powered by BaaS. Have you ever bought something online using a Buy Now Pay Later feature? Powered by BaaS. How about paying for your rideshare to the airport? Powered by BaaS. You probably never noticed that you’ve been a part of the BaaS ecosystem for years, but here you are – you’re what in industry terms is known as the “end user.” Thousands of decisions go into making your experience the best it can be.