Banking as a Service: what is BaaS?

Even if you have a strategy in place, managing the process often becomes a low priority for internal IT teams. Today, businesses need a backup plan with easily accessible recovery points and efficient restore times. Learn how Backup as a Service helps protect information and keep businesses running, even when unexpected events occur. Celebrating two decades of innovation, Acronis has more than 2,000 employees in 45 locations. Acronis Cyber Protect solution is available in 26 languages in over 150 countries and is used by 18,000 service providers to protect over 750,000 businesses.

When she’s not writing, Barbara likes to research public companies and play Pickleball, Texas Hold ‘em poker, bridge, and Mah Jongg. Banking as a Service seamlessly provides essential services and financial products to customers, contributing substantially to economic growth. As Global Head of Sales, Kevin is responsible for leading i2c’s business development initiatives and cultivating strategic alliances across North and South America. Kevin is a seasoned international payments executive with more than 25 years of experience designing and executing successful growth strategies for global technology and professional services organizations. Increased fraud and identity theft is putting an enormous strain on businesses, which often results in the need to use more sophisticated identity verification solutions.

Banking-as-a-Service (BaaS) Market Size and Forecast

They take full responsibility for preserving the integrity of your data, so it can be recovered whenever required. Before implementing a Backup as a Service solution, you must identify essential data for your organization. Typically, critical data is deemed necessary for the company’s success or is information you must retain for regulatory purposes. A data backup policy is a set of procedures and rules used to describe your organization’s strategy for creating backup copies and storing data securely. A robust Backup as a Service solution offers flexible backup options.

What is BaaS and how does it work

Like when completing an eBay purchase by paying with your PayPal account. It’s no surprise that Banking as a Service APIs are the heart and soul of the model. After all, the system is only as good as the solutions it offers for day-to-day operations.

Who are the main BaaS providers in the UK?

Commvault backup and disaster recovery systems alerted Colorado’s CIO to a new server coming online and accumulating data in February 2018. The server was quarantined, and when the state’s data team revealed they hadn’t stood it up, it became clear they were in the first stage of a ransomware attack. Above all, it would also help prevent cyber threats because of technology’s abiding nature. With the business world becoming more competitive by the day, many industries are looking for ways to stay ahead of the curve. In some of these industries, traditional revenue streams alone are proving to be insufficient.

For instance, the BaaS provider should be willing to alter the frequency of backup and extend the retention period as per your request. While considering a BaaS provider, ask about the customer blockchain-as-a-service (BaaS) definition support that they offer. In the case of an accident or disruptive event, the support executives should be able to provide speedy recovery of your data from the offsite location.


On-premises backup infrastructure requires purchasing and maintaining physical storage media – tape, external hard drives, orNetwork-attached Storage . It enables quicker backups but requires additional staff and costs to maintain it properly. On the other hand, a cloud backup doesn’t require companies to keep storage hardware in their offices. A robust BaaS provider can streamline your backup process via comprehensive online backup, enhanced security features, automation, and storage space optimization.

When a consumer engages with a BaaS integrated financial solution in their customer journey, this is often the only brand the consumer will see. This level of integration gives brands complete control over the customer experience—everything from product selection to financing and even payment. Owning the entire customer journey gives brands more opportunity to promote brand engagement, reward customer loyalty, and reinforce brand recognition.


In the past, introducing banking functionalities would have cost millions of euros, demanded a dedicated team and involved years of regulatory approval. With BaaS, it can be completed with smaller capital, in a few months, and with just an API. Banks that use BaaS will be able to segment their product offer and satisfy different customer needs with multiple solutions that suit them better, while having a single powerful back-end. In this day and age, every business has gone digital by adopting the latest technological trends. However, this also means that the business process can be affected by various internal and external events related to the IT infrastructure hosting it.

What is BaaS and how does it work

While BaaS providers use a closed architecture, platforms are all about sharing APIs with customers. BaaS offers an external service provider to set up all the necessary blockchain technology and infrastructure for a fee. Once created, the provider continues to handle the complex back-end operations for the client. Tech-savvy legacy firms can fend off the encroaching threat of fintechs by moving into the BaaS space to share their data and infrastructure. In a matter of years, access to this level of information will become table stakes for digitally native customers — so banks that begin now will be ahead of the curve, and likely rewarded with high demand.

Industry impact of Banking as a Service

You have now taken a glance at just the smallest part of procedures that should be run for a simplest banking task. Banking-as-a-Service simplifies access to banking functionality for developers and allows fast and easy building of new products. Julie is a dynamic professional with over 16 years of rich experience as a VDI and Application Hosting expert. Backup as a Service is being welcomed by businesses of all types and sizes due to the convenience and cost benefits it offers. However, while opting for BaaS, it is important to choose a competent provider.

  • A Banking as a Service provider is a FinTech or other third-party company offering businesses a software platform solution for embedding BaaS financial services for customer use.
  • Marqueta issues physical, virtual, and tokenized credit cards, debit cards, and prepaid debit cards providing customized rewards, card controls, and customer preferences.
  • For instance, if there is a power outage between backups – can you afford to lose a few hours’ worth of data or even an entire day?
  • Most bank license holders use a banking software platform, and it’s usually delivered as a service.
  • BaaS makes it easier for agencies to move on-premises data to the cloud and manage the resulting hybrid, multicloud environments while also ensuring availability and rapid recovery from downtime.
  • And third, the two-way flow of user data in the system allows financial institutions to gain new insights into their customers’ buying and investing habits.
  • Deep within the bank’s system there is an actual BaaS module, built to be used solely by the same bank.

This is how the fintech in our example can connect to the bank’s feeds to offer banking services to its customers. Neobanks are online-only banking platforms without branches or a banking license, according to a Forbes Advisor article (What is a Neobank? ). Ultimately, the BaaS model means you no longer have to be a bank in order to offer traditional banking services. This doesn’t mean you don’t have to worry about security or compliance or regulation or anti-money laundering or all of those complex legal elements that banks have to worry about. It just means that you’re going to need a partner that will take care of all that for you—and that partner must be a federally regulated bank with a banking license.

What Is Banking as a Service – BaaS?

The processes, along with the complex infrastructure, end up creating gridlocks. Finally, the Bank-as-a-Service model allows financial institutions to multiply their direct revenue sources. Non-banking companies that rely on banks to provide financial services become customers of their partner banks. BaaS terminology uses brand to mean businesses in multiple industries, including retail, that introduce ebbed finance products to customers within the same online channel in which they offer goods to customers. With Banking as a Service, customers don’t need to seek these financial services or products separately through a traditional bank’s website, mobile app, or branch location. BaaS is based on an API software connection between banks and non-banks, including FinTech companies.

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