The extension of financial functionality into nonfinancial applications and the variety of money movement offerings now available are creating a significant shift in financial services, which will likely increase in volume rapidly over the next several years. A new business category, Banking-as-a-Service (BaaS), has emerged to support demands for money movement capabilities and the provision of financial services in nonfinancial businesses through sponsor banks. The BaaS space has evolved to incorporate nearly every aspect of money movement, and new use cases continue to emerge.
This report defines the sponsor bank ecosystem and identifies opportunities and risks for sponsor banks and their partners entering the space. It is based on interviews with 15 bank and market player executives in the U.S. from leading sponsor banks, data from Datos Insights’ internal data set, and third-party resources.
Clients of Datos Insights’ Retail Banking & Payments service can download this report.
This report mentions Affirm, American Bank, AMG National Trust, Atelio, Axiom BankBlue Ridge Bank, Choice Financial Group, Cross River Bank, Evolve Bank and Trust, First Federal Bank, FIS, Lineage Bank, Mastercard, Metropolitan Commercial Bank, Piermont Bank, Synapse Financial Technologies, Thread Bank, Uber, Unit, Vast Bank, Victorfi, and Visa.
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