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The various services of Banking-as-a-Service

Banking-as-a-Service covers all services traditionally offered by a bank. For example, Treezor helps you manage the entire payment chain: from issuing cards to creating digital wallets, to issuing IBANs and to managing mobile payment solutions. This can also include other payment methods, such as credit or check collection.

In addition, BaaS platforms allow you to draw on not only an API technical foundation, but also on a regulatory foundation, meaning you can benefit from the BaaS institution’s licence and strong partnerships. For example, Treezor has an electronic money institution licence and a status as a BIN Sponsor and Mastercard Principal Member.

There are three benefits that BaaS offers its customers:

  • Purely technical services – drawing on the API of the BaaS (e.g., the Treezor API or the Treezor Connect service)
  • Regulatory services and partnerships – drawing on the BaaS licence and privileged status with Visa, Mastercard, Apple and Google.
  • BaaS industry expertise – drawing on knowledge of business models such as those of the marketplace, challenger banks (B2C, B2B), different niches, etc.

A technical platform

Banking-as-a-Service platforms such as Treezor are primarily technical platforms. Thanks to a central API, and the endpoints it reaches which extend to all banking services, the entire payment chain is covered. Treezor offers over 70 events and 27 endpoints.

This means that Treezor’s clients, those using this platform to provide accounts and payment services to their customers, can connect to the API, for example to:

  • Issue payment cards and create rules for managing these cards
  • Issue IBANs
  • Create digital wallets (e-wallets)
  • Manage inward and outward payments
  • Support SEPA transfers and direct debits

And that is a tiny number of the possibilities. In fact, the sky is the limit when it comes to the services companies can create by drawing on this innovative and easy-to-use infrastructure.

A regulatory partner

Banking-as-a-Service is practically synonymous with regulation and licences. Indeed, a real Banking-as-a-Service platform will not only be a technical platform. The regulatory part is often the most difficult obstacle to overcome for young companies (funds to set aside, management of the relationship with the regulator, KYC, etc.) but also for large companies wishing to launch a new payment service quickly.

Therefore, a partner can rely on the BaaS institution’s licence and become an electronic money distributor or a payment service agent. In Treezor’s case, it is an electronic money institution licence (electronic money should not be confused with cryptocurrencies).

This brings direct benefits, starting with less demanding cash flow and cash reserves requirements for the company using these services, and strengthening of fund security and of robustness of regulatory coverage for their clients. Finally, this saves a significant amount of time because the BaaS platform will do the reporting for the company using its services, rather than the company having to follow procedures to obtain a licence.

This model can also benefit institutions that already have their own licence, for example as part of the BIN Sponsorship that Treezor offers. The company can rely on its own licence while delegating the service management to Treezor, as part of a regulated relationship.

BaaS experts to support you

Banking-as-a-Service platforms are made up of teams of experts who can cover all regulatory and technical issues. These experts therefore play an extremely important advisory role in helping companies looking to launch offers involving payment services.

At Treezor, there are currently more than 150 talented people dedicated to this activity. These include:

  • A legal team that advises on which approach to take when launching a service (payment service agent, electronic money distributor, etc.).
  • An implementation team that supports companies step-by-step to connect to Treezor’s API, shares best practices and helps a project come to life.
  • Account Managers and Technical Account Managers in charge of day-to-day management of relationships with clients, in all areas relevant to the relationship with Treezor.
  • A dedicated operations team that handles KYC of end customers, litigation and fraud management.
  • Developers who are constantly improving the API and adding new services.
  • A compliance team that is constantly in contact with the regulator (in France this is the ACPR) in order to implement best practices.

Key takeaways:

  • Banking-as-a-Service platforms are technical solutions that simplify and digitalise banking services.
  • Banking-as-a-Service platforms have licences which companies launching their own products and applications can rely on.
  • Banking-as-a-Service platforms are made up of experts who ensure everything runs smoothly for the companies that rely on them.

Banking as a service

Would you like to know more about what BaaS is and how it is beneficial? Find out here.

Find all our Banking-as-a-Service articles right here on the Treezor blog.