When you think of banking, you picture branches, tellers, and vaults. But behind the scenes, Banking as a Service, a model where licensed banks provide their infrastructure to third parties via APIs. Also known as BaaS, it lets fintechs, apps, and even retailers offer checking accounts, payments, and loans without becoming banks themselves. This isn’t science fiction—it’s what powers Chime, Revolut, and the virtual cards your small business uses today.
Banking as a Service works by connecting non-bank companies to real banking licenses through secure API finance, application programming interfaces that let software talk to bank systems. Think of it like a power outlet: the bank is the power plant, and the app is the toaster. You don’t need to build a power plant to make toast. That’s why companies like Stripe and Synapse can offer business accounts without holding a single dollar in deposits. This model ties directly into Open Banking, the regulatory framework that forces banks to share customer data with authorized third parties. Open Banking gave us the permission; Banking as a Service gave us the tools to build on it.
What does this mean for you? If you run a small business, Banking as a Service is why you can get a virtual card in minutes, track every expense in real time, and avoid paper checks. It’s why apps like Cash Flow Dashboards and Procurement Cards exist—they’re built on top of bank infrastructure, not in place of it. And if you’re curious about neobanks, CBDCs, or cross-chain finance, you’re seeing the same pattern: traditional finance is being unbundled and rebuilt using software. The companies behind these tools aren’t banks. But they’re banking—just differently.
Below, you’ll find real examples of how this plays out: from how virtual cards cut fraud risks to how Open Finance expands beyond bank accounts into crypto and investments. No fluff. No jargon. Just clear, practical insights from people who’ve built and used these systems.
Embedded finance integrates payments, loans, and insurance directly into everyday apps like Shopify, Uber, and ride-sharing platforms - making financial services seamless, invisible, and everywhere. Learn how it works, where it’s used, and why it’s changing money forever.
