These Digital Banks help Fintechs to offer banking services


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.

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