With the release of Stripe Treasury, more people have been thinking about Banking as a Service, or BaaS for short. Why does it matter?
BaaS is a recent phenomenon. In the past, starting your own bank was nearly impossible. Aquiring a banking charter was a very long and difficult process. However, there were many technology companies that wanted to offer banking products or embed banking services within their products. This led to the growth of BaaS.
The space is changing rapidly. More players are entering the market and providing this service. Companies like Synapse, Unit, and others allow anyone to spin up bank accounts on behalf of users through an API.
It's not just challenger banks who can use BaaS. Gig economy platforms, sellers of big ticket items, or any company that needs to issue cards/hold money can leverage these new offerings.
At Lucky Card, we capitalized on this trend. Instead of focusing on the ins and outs of banking, we were able to focus on design and user experience.