Lesson 3 · Practitioner · Both · 22 min
Embedded Finance & Banking-as-a-Service
What BaaS really provides—licensed balance sheet and rails behind a brand’s UX—and how responsibilities split.
Objectives
- ▸Define embedded finance vs standalone fintech apps
- ▸Explain BaaS / sponsor bank models
- ▸List controls banks expect from platforms
- ▸Design customer disclosures about who holds the account
Embedded finance places financial products inside non-bank customer journeys: checkout lending, wallets in ride apps, payouts in marketplaces. The brand owns UX; a regulated partner often owns deposits, cards, or lending licences.
Key terms
Embedded financeBaaSSponsor bankProgram managerKill switch