What Types of Businesses is BaaS For?

BaaS benefits any brand that wants the fastest, easiest and most secure route to offering its customers financial services.

What Types of Businesses is BaaS For?

BaaS works for businesses of all shapes and sizes – here’s why.

BaaS is for any business with a strong brand and customer base, for whom more value can be leveraged by offering banking products, from lending and credit card services to simple payment transactions. In short: BaaS benefits any brand that wants the fastest, easiest and most secure route to offering its customers financial services.

“Embrace Banking as a Service and Help Unlock New Revenue Streams”

Gartner Research

Despite the evidence that digital banking is the future, there are significant gaps in the market. Current offerings have overlooked two key areas:

  • The provision of BaaS on a white labelled (branded) basis for large corporates or Associations as an extended offering to their client or membership bases. 
  • The provision of functional and affordable banking services to Small to Medium-Sized Enterprises (SME’s).

This – and particularly the former – represent enormous potential for the BaaS model.

BaaS: Not Just for the Big Guys

Major international brands are leading the way when it comes to embedded finance through the BaaS model. Take Uber. The rideshare company’s aim has always been not only to be a source of income for its drivers, but to be a partner in their success. To do that, it partnered with Barclays and Green Dot on a BaaS model that added functionality to its app that allows drivers to deposit, manage, move, and track money. Drivers get an easier, more seamless, end-to-end experience, with detailed, real-time insights into their financials, and Uber benefits on its bottom line and from the wealth of data that comes with it.

…But that doesn’t mean a BaaS model only works for large corporates.

Take an SME-sized yachting brokerage that has leveraged a BaaS platform’s prepaid card management capabilities to streamline its payments and generate new net revenue. 

Benefits have included the elimination of cash, better visibility of financials via real-time reporting, and real-time control of financial transactions. The solution means yacht brokers can segregate accounts and cards for each yacht while still being able to manage all cards centrally. 

An association such as the RAC or AA. Airlines, luxury goods companies and high-end travel brands are also all candidates. Crucially, under the BaaS model, a provider like Techcap then has a single customer relationship, who might in turn have many thousands of underlying customers, who become banking customers. The result is a better level of customer service for all.

For example,  a car manufacturer that wishes to offer a banking service as an extension to its vehicle financing offering to its new car customers: Customers get manufacturer-branded banking and card services, integrated with a vehicle finance package, and it is managed as a service for the manufacturer by a regulated banking partner. 

Want to find out how to make BaaS work for you and your customers? Contact us today.


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