Banking-as-a-Service Providers

Both financial organizations and non-banking institutions are progressively taking advantage of Banking-as-a-Service that allow them to incorporate complete banking capabilities into their products without the need to establish a charter or build infrastructure from scratch. The entire process is made possible by the collaboration of specialized infrastructure providers and tech suppliers. In this paper, we delve into the role of Banking-as-a-Service providers, the manner in which they function, a brief overview of the most prominent players, and the regional advancements in Europe and the U.S.

What is a Banking-as-a-Service provider?

A Banking-as-a-Service providers  is a supplier that provides banking infrastructure (accounts, cards, deposits, payments, compliance) via an API or white-label interface so that a third-party business can Banking-as-a-Service providers financial products under its own name. Instead of applying for a complete banking licence and building all technology, a company connects with this backend system. What’s the outcome? Quick go-to-market, lower capital costs, and flexible product rollout.

Main characteristics are:

• Integration of bank services into apps or platforms through APIs.
• A situation where a non-bank brand provides financial services is referred to as embedded banking.
• White-label rollout of account and card programmes made possible by modular infrastructure.

Why this model matters

For fintechs, retailers, and service firms interested in increasing their monetisation, entering into the financial services business has the potential to Banking-as-a-Service providers new revenue sources, deeper customer engagement, and improved differentiation of their value proposition. 

The infrastructure collaborators take care of regulatory, compliance, risk, and technology burdens. One industry article pointed out that the transition from legacy banks to modern, API-first players is reshaping the financial-services landscape.

Top Banking-as-a-Service companies

Banking-as-a-Service providers a more specific context, a recent industry ranking has summarized ten major firms in the following table. 

Rank	Company	Headquarters & Notes
1	Engine by Starling (part of Starling Bank)	London – cloud native core platform enabling branded banking services.
2	Marqeta	Oakland, CA – API-first card-issuing and payment infrastructure globally.
3	Mambu	Amsterdam – SaaS core banking platform enabling rapid product deployment.
4	Green Dot Corporation	Austin, TX – US bank-holding company offering embedded banking via the Arc platform.
5	Solaris SE	Berlin – full German banking licence, modular services across Europe.
6	ClearBank	London – cloud-native clearing bank offering embedded banking via APIs.
7	10x Banking	London – API-first core-banking platform powering banks and their partners.
8	Treezor	Paris – part of Société Générale group, EMI licence, e-wallets, cards, SEPA.
9	Railsr	London – embedded-finance platform delivering BaaS + Cards-as-a-Service via APIs.
10	Griffin	London – UK-based BaaS provider with its own banking licence, targeting fintechs & brands.

This table provides the top-level picture of the infrastructure provider as the “best” view, which consists of those firms that allow others to deliver banking-like services.

The landscape of platforms and APIs

When such a service is selected by a business, usually, the platform with features like opening accounts, the card programs (whether physical or virtual), movement of money, compliance with regulations (KYC/AML), and monitoring of risk is the one chosen. The architecture at the back end is usually cloud-native, which means it is built for scalability, modularity, and “plug-and-play” use. The firms mentioned above illustrate how a core platform plus APIs can elevate a brand or a fintech to the status of a banking-adjacent player.

Embedded banking providers & white-label banking solutions

The major advantage of this model is that every brand retailer, travel company, or gig-economy marketplace puts banking features directly into the user experience. This is what embedded banking is all about. They do not redirect to a bank; the bank’s functionality is actually integrated inside their app. In lots of instances, the usage of white-label banking solutions means that the end-user still doesn’t know that there is an external bank or infrastructure provider colluding with the app or service.

To put it another way, Treezor and Solaris let their clients operate cards, set accounts and payments in various European markets, all with their clients’ brand.

Banking-as-a-Service fintech & startup scene

Start-ups that are applying the capabilities of these infrastructure providers are creating consumer or business-finance offers quite easily without the high cost of developing from scratch. Most of them are creating something new and providing it to the underserved segments, niche verticals, or their specific cases (such as gig-worker payouts or retail brand financial services). 

The infrastructure partners lead with the rails, and the fintechs then come in with user experience and customer acquisition. This interaction not only boosts the pace of innovation but also attracts more players to the fintech side of the financial services industry.

Regional focus: Banking-as-a-Service in Europe

In Europe, regulations such as PSD2 and EMI licenses have allowed many firms to provide services across borders. For example, Solaris is licensed to operate as a bank in Germany, which gives it the right to offer its services across Europe.

Treezor has an EMI license that allows it to operate in more than 25 countries. ClearBank concentrates on UK payment schemes (Faster Payments, Bacs, CHAPS). These firms illustrate how European companies are setting up the necessary infrastructure for embedded finance across different markets.

Regional focus: Banking-as-a-Service in the US

In the U.S., it’s common for the model to match fintech brands with bank-partners or banks that have charters holding companies. One such case is the Arc platform of Green Dot: it provides the partners with branded banking and card programmes. The U.S. model tends to make it necessary to go through the charter/bank-partner channel, state and federal regulations, and deposit-insurance requirements. 

Non-financial companies are gradually getting to the point of offering “banking-lite” services across their brands; thus, embedded finance is flourishing in the U.S.A.

Real-World Examples

• A retailer provides debit and prepaid cards bearing the store’s brand with one of these platforms (white-label).
• A gig-platform connects bank accounts from the gig workers, so they get payments and manage their money through the accounts with embedded features.
• A fintech company provides “buy-now-pay-later” through accounts and cards that are supported by one of the infrastructures above.

These are examples of how banking infrastructure can be taken as a service, as the heavy front-end burdens are removed and the clients are allowed to concentrate on the user journey.

Benefits and Challenges

Benefits

• Fast deployment of financial services under your own brand.
• No or little need to set up a complete banking infrastructure or get a license.
• Flexibility in scaling and adapting offerings (cards, deposits, payments, wallets).
• Greater customer engagement and monetisation opportunities.

Challenges

• Regulatory complexity still exists (licensing, deposit insurance, AML/KYC).
• Rely upon the provider’s stability and compliance reliability.
• Traditional banks and fintechs need to robustly vet partner viability, fees, and service levels.
• Data security and risk oversight always remain important.

How to Choose a Provider

When considering an infrastructure partner, think about:

• Their regulatory status (license, jurisdiction).
• API documentation and integration difficulty.
• Available options (cards, accounts, wallets, payments, lending).
• Ample chance for platforms to scale and spread across different countries.
• Price, trouble with training, and control of the whole process.
• The level of service provided, the record of compliance, and openness.
• Willingness to provide the brand’s product white-labeled versus allowing the brand to host the product or co-branding.

Outlook and Trends

The loom of the future is such that the banking features will be embedded within the ecosystems by more of the non-financial brands. The new entrants, along with the incumbents, have all been provided with the “banking-in-a-box” model to compete. The move of the global players to the cloud, the easing of the regulations, especially in Europe, and the creation of alliances among fintechs, Embedded banking providers, and brands will still be the main reasons for the rapid adoption of the technology. 

The infrastructure will be increasingly utilized by the specialized verticals like healthcare payouts, supply-chain finance, and gig-worker banking as the space matures.

Conclusion

BaaS is creating a new way of consuming and, hence, is changing the whole financial services delivery system. The traditional banking operations are not a necessity anymore; hence, the brands and fintechs are installing the accounts, cards, payments, and lending capabilities of the companies that they are using. 

Embedded banking providers companies in Europe that have been able to grow and make a mark very fast are the ones among the top tier of this ecosystem. Aiming at providing the Embedded banking providers products under their own brand, the businesses have to make of platform selection that will be of strategic significance and highly impactful.

FAQS

Q1. What is the distinction between a BaaS provider and a regular bank?

The BaaS collaborator gives the backend technology and the infrastructure, both the licensing and the adjacent area, so that the financial-service products can be offered by third parties, while a traditional bank, on the other hand, not only possesses the complete license but also constructs the entire stack and interacts directly with the end customers.

Q2. Is it possible for any Banking-as-a-Service to make use of a BaaS platform?

Yes, in principle, non-bank brands, fintechs, or companies can use such platforms as long as they comply with the partner’s onboarding requirements (compliance, risk, integration), and the regulatory regime fits their operations.

Q3. What are the functionalities that you will be able to introduce through a BaaS platform?

Features like opening bank accounts, issuing debit/credit cards (physical/virtual), enabling Banking-as-a-Service, wallets, lending, or running reward programmes can all be launched under your brand, but the licensed infrastructure will be the one powering them.

Q4. Is this model exclusively for fintechs and startups?

No way. While startups gain from quick deployment, the established brands (retailers, platforms, banks) can utilize these services to innovate quickly, create new products, and remain in the race.

Q5. What are the risks of picking up a BaaS partner?

The Banking-as-a-Service of the provider’s regulatory non-compliance, operational malfunction, or vendor lock-in, concealed expenses, integration difficulty, or limited geographical/regulatory coverage are among the risks. It is very important to perform exhaustive due diligence.