Imagine that virtually any type of business you can think of could offer banking services to their customers, without having to apply for a banking license or directly bear the costs of regulatory compliance. This is “banking-as-a-service” (BaaS), write CGAP’s Peter Zetterli and Ivo Jenik.
While still new – with only a few players globally- the authors say it has the potential to create an enabling ecosystem where diverse players can deepen financial inclusion without the need to acquire their own banking license.
