White-Label Banking Platforms: Building a Bank Without a Banking License

⚡ Key Takeaways

• {'point': 'Three-layer architecture enables non-bank banking', 'detail': 'A licensed sponsor bank provides regulatory authority, a BaaS technology platform delivers APIs and infrastructure, and the brand manages the customer experience, allowing banking products without a charter.'} 𝕏
• {'point': 'Revenue sharing drives the economics', 'detail': 'Interchange fees, deposit interest, and account fees are shared among sponsor banks, technology platforms, and program partners, creating viable business models for all participants.'} 𝕏
• {'point': 'Regulatory scrutiny is intensifying', 'detail': 'Enforcement actions against sponsor banks and the Synapse bankruptcy have prompted regulators to develop stricter oversight requirements for BaaS partnerships and third-party risk management.'} 𝕏