I used to advise that the BaaS model was the way to get to market fastest, but if you wanted the best economics you should try to have a direct relationship with your infrastructure partners.
Now that I've seen the power of the BaaS platform firsthand, I'm changing my mind.
4/ *#2: Rent the bank and rent the service*
The BaaS partner model. Rent a bank charter & service from a BaaS firm that is a bank or partners w/ banks.
(+) Fastest launch, BaaS handles FDIC and product compliance.
(-) More expensive to rent both. Rely on BaaS for products.— #Interspace (#@heyinterspace)
12:37 PM • Nov 1, 2021
We have an ability to use platform scale to get great economics for our clients, from day one. We have negotiating power that you don't unlock on your own until much later. I now think that leverage makes it so BaaS makes sense for all but the mega fintechs. It's awesome.
And at least at @unit_co_ we're just getting started. I am genuinely excited to use our aggregated forecasts to go to bat for our clients and drive platform-level unit economic improvements that support all of our clients.
