Banking-as-a-Service is a model where a licensed bank exposes its regulated services \u2014 accounts, cards, payments, and lending \u2014 to other companies through APIs, so those companies can offer financial products under their own brand. It is the infrastructure behind many neobanks and the embedded finance features that appear inside non-financial apps.<\/p>\n\n\n\n
BaaS lets a startup launch a financial product without applying for a banking license, which can cut the time to market from years to months. The trade-off is dependency \u2014 regulators have tightened their oversight of sponsor banks and their fintech partners, so a product tied to one provider carries real continuity risk.<\/p>\n\n\n\n