Banking as a Service
Banking as a Service (BaaS) is a cloud-based platform model that allows non-bank businesses to integrate banking services directly into their products through APIs. It provides core banking functionalities such as payments, account management, lending, and compliance, enabling companies to offer financial services without building their own banking infrastructure. This model facilitates innovation in fintech by reducing regulatory and technical barriers to entry.
Developers should learn BaaS when building fintech applications, embedded finance solutions, or any product requiring banking features like payments or account creation. It's particularly useful for startups and enterprises looking to launch financial services quickly, as it handles complex regulatory compliance and backend operations. Use cases include neobanks, e-commerce platforms with integrated payments, and SaaS companies adding financial capabilities.