Bank as a Service (BaaS) and Software as a Service (SaaS) models for electronic money (EMI) and fintech businesses are among the most effective ways to quickly and legally enter the market with a competitive financial product. These models allow companies to focus on developing the customer experience and a unique offering, rather than building a complex technological or banking infrastructure from scratch.
What is BaaS in fintech?
Bank as a Service is a model in which a licensed bank provides non-banking organizations (e.g., fintech companies, startups, e-wallets) access to its banking functions via an API. This includes opening and maintaining accounts, issuing payment cards (debit or prepaid), direct access to SWIFT and SEPA banking systems, payment processing, KYC/AML checks, issuing IBANs, and much more.
Instead of obtaining their own banking or even EMI license, fintechs can use the license and infrastructure of a BaaS provider. This allows them to launch in months rather than years.
What is BaaS in fintech?
Bank as a Service is a model in which a licensed bank provides non-banking organizations (e.g., fintech companies, startups, e-wallets) access to its banking functions via an API. This includes opening and maintaining accounts, issuing payment cards (debit or prepaid), direct access to SWIFT and SEPA banking systems, payment processing, KYC/AML checks, issuing IBANs, and much more.
Instead of obtaining their own banking or even EMI license, fintechs can use the license and infrastructure of a BaaS provider. This allows them to launch in months rather than years.
Key BaaS providers in Europe and globally
Solaris (Germany) is one of the leading BaaS providers in the EU. It offers everything from IBANs, cards, KYC/AML, and loans. Suitable for both startups and large brands
Treezor (France) — a subsidiary of Société Générale, operates in the BaaS/EMI segment, supports SEPA, cards, AML, and multi-currency accounts
Railsr (UK) — a flexible platform with a focus on innovation, works with neo-banks and tech projects
ClearBank (UK) — the first clearing bank in the UK in 250 years, offers BaaS services with an emphasis on reliability and speed
Swan (France) — a young but rapidly growing BaaS provider, convenient for launching simple banking products
Bankable, Synapse, Unit (USA) — popular in the American market, offer similar services in the BaaS model
How Fintech Companies Use BaaS
For example, a fintech company wishing to issue a multi-currency card with a cashback feature can connect to Solaris or Treezor, integrate their API, and use their license and back-office for operations. This way, all processes—from identity verification to card issuance and payment processing—will be handled through the partner's infrastructure, while the brand and user experience remain in the fintech's hands.
What is SaaS in Fintech?
Software as a Service is a model for renting ready-made software running in the cloud. In fintech, this means you can rent a full-fledged banking platform or its individual modules: core banking (accounting system), card infrastructure, KYC and AML platform, billing, risk management, reporting, analytics, etc.
The largest SaaS platforms for fintech and EMIs
Mambu is a cloud-based core banking provider suitable for credit institutions, EMIs, and neo-banks. It supports account management, interest accrual, billing, and configurable product logic.
Thought Machine is a powerful platform with a programmable core, used by major digital banks (e.g., Lloyds, SEB).
Tuum (formerly Modularbank) is a flexible and modular core banking solution that easily integrates with any BaaS and payment systems.
Marqeta is an outstanding platform for card issuance and management. Supports flexible card transaction logic, tokenization, and virtual cards.
ComplyAdvantage, Sumsub, and Onfido are platforms for KYC/AML automation, integration with credit bureaus, and risk analysis.
Salt Edge, Tink, and TrueLayer are SaaS solutions for working with open banking (PSD2), connecting to customer accounts, receiving data, and initiating payments.
How to integrate BaaS and SaaS into your business
First, you need to define your business model and understand what exactly you plan to launch—a bank wallet, a neo-bank, a payment gateway, a cross-border transfer solution, or a B2B infrastructure.
Next, you need to analyze regulatory requirements. Depending on the country, you will need a specific license (EMI, PI, or banking). If you already have a license, you can connect only to the SaaS components. Otherwise, you can use BaaS with a partner model.
Next, it's important to select the right providers, considering jurisdiction, onboarding time, customization options, pricing, documentation, and SLAs.
The next step is to build the system architecture, test the solution in a sandbox environment, and enable the necessary modules and integrations.
After this, external services are connected—KYC/AML, risk analysis, BI, analytics, and support. Most of these services also operate on the SaaS model and are easily integrated via an API.
An MVP is launched with a limited group of users. Following successful testing and audit, the product is scaled to the full version.
A legal infrastructure is implemented, including contracts with providers, data protection documentation, and compliance with GDPR and local requirements.
Advantages of BaaS and SaaS in Fintech
Rapid time to market – full launch in 3-6 months
Significant savings on development, infrastructure, and licensing
Ability to flexibly scale and quickly modify products
Focus on customer experience and marketing, rather than building a banking core
Reduced technological and legal risks
The integration of BaaS and SaaS allows even small companies to launch bank-level financial products and compete with major players. This is especially important for startups, licensed EMI companies, marketplaces, and large brands looking to launch their own fintech solution under their own brand.
Solaris (Germany) is one of the leading BaaS providers in the EU. It offers everything from IBANs, cards, KYC/AML, and loans. Suitable for both startups and large brands
Treezor (France) — a subsidiary of Société Générale, operates in the BaaS/EMI segment, supports SEPA, cards, AML, and multi-currency accounts
Railsr (UK) — a flexible platform with a focus on innovation, works with neo-banks and tech projects
ClearBank (UK) — the first clearing bank in the UK in 250 years, offers BaaS services with an emphasis on reliability and speed
Swan (France) — a young but rapidly growing BaaS provider, convenient for launching simple banking products
Bankable, Synapse, Unit (USA) — popular in the American market, offer similar services in the BaaS model
How Fintech Companies Use BaaS
For example, a fintech company wishing to issue a multi-currency card with a cashback feature can connect to Solaris or Treezor, integrate their API, and use their license and back-office for operations. This way, all processes—from identity verification to card issuance and payment processing—will be handled through the partner's infrastructure, while the brand and user experience remain in the fintech's hands.
What is SaaS in Fintech?
Software as a Service is a model for renting ready-made software running in the cloud. In fintech, this means you can rent a full-fledged banking platform or its individual modules: core banking (accounting system), card infrastructure, KYC and AML platform, billing, risk management, reporting, analytics, etc.
The largest SaaS platforms for fintech and EMIs
Mambu is a cloud-based core banking provider suitable for credit institutions, EMIs, and neo-banks. It supports account management, interest accrual, billing, and configurable product logic.
Thought Machine is a powerful platform with a programmable core, used by major digital banks (e.g., Lloyds, SEB).
Tuum (formerly Modularbank) is a flexible and modular core banking solution that easily integrates with any BaaS and payment systems.
Marqeta is an outstanding platform for card issuance and management. Supports flexible card transaction logic, tokenization, and virtual cards.
ComplyAdvantage, Sumsub, and Onfido are platforms for KYC/AML automation, integration with credit bureaus, and risk analysis.
Salt Edge, Tink, and TrueLayer are SaaS solutions for working with open banking (PSD2), connecting to customer accounts, receiving data, and initiating payments.
How to integrate BaaS and SaaS into your business
First, you need to define your business model and understand what exactly you plan to launch—a bank wallet, a neo-bank, a payment gateway, a cross-border transfer solution, or a B2B infrastructure.
Next, you need to analyze regulatory requirements. Depending on the country, you will need a specific license (EMI, PI, or banking). If you already have a license, you can connect only to the SaaS components. Otherwise, you can use BaaS with a partner model.
Next, it's important to select the right providers, considering jurisdiction, onboarding time, customization options, pricing, documentation, and SLAs.
The next step is to build the system architecture, test the solution in a sandbox environment, and enable the necessary modules and integrations.
After this, external services are connected—KYC/AML, risk analysis, BI, analytics, and support. Most of these services also operate on the SaaS model and are easily integrated via an API.
An MVP is launched with a limited group of users. Following successful testing and audit, the product is scaled to the full version.
A legal infrastructure is implemented, including contracts with providers, data protection documentation, and compliance with GDPR and local requirements.
Advantages of BaaS and SaaS in Fintech
Rapid time to market – full launch in 3-6 months
Significant savings on development, infrastructure, and licensing
Ability to flexibly scale and quickly modify products
Focus on customer experience and marketing, rather than building a banking core
Reduced technological and legal risks
The integration of BaaS and SaaS allows even small companies to launch bank-level financial products and compete with major players. This is especially important for startups, licensed EMI companies, marketplaces, and large brands looking to launch their own fintech solution under their own brand.
Obtaining BAAS and SAAS