Banking As A Service: What Are The Risks And Who Owns The Customer?

OBSERVATIONS FROM THE FINTECH SNARK TANK

Embedded finance—where non-chartered companies like fintechs and consumer brands provide financial services from chartered financial institutions—is projected to reach $7 trillion in transaction value by 2026.

Banking as a service (BaaS)—the services that banks (or other chartered financial institutions) provide to the fintechs and brands who want to offer financial services—is the flip side of embedded finance. Cornerstone Advisors estimates that BaaS will become a $25 billion opportunity for banks by 2026.