Let’s start simple.

You may be wondering if this is just another article discussing the partnership opportunity between community financial institutions (CFIs) and fintech. Rest assured, we have a different approach. Our objective is to offer practical and simplified guidance on aligning the world of BaaS with CFIs (with assets less than $10 billion). This raises an important question: Is such a partnership the ideal strategy for your community-focused organization? To find the answer, continue reading as we provide the necessary insights.

For the people. By the people.

We actively collaborate with CFIs in executing, exploring, and addressing the challenges associated with implementing a BaaS strategy. Our goal is to provide CFI-driven content that draws from our experience working with CFIs and the expertise we bring from our team members who have spent 25 years building open banking solutions and the past three years researching and developing BaaS offerings before joining Vitex Inc.

This multi-part article series will cover a range of specific topics aimed at guiding you through the journey of fintech partnership, leveraging our experience and expertise.

It is specifically designed for you if you represent a financial institution (FI) that falls into one of the following categories:

  • Haven’t yet considered BaaS as an opportunity.
  • Have considered it but have made limited progress.
  • Are interested and actively pursuing it but feel overwhelmed.

In this article we will discuss:

  • What is BaaS?
  • Why is it a big deal, and what are the opportunities for CFIs?
  • How can CFIs decide if it’s the right fit for them?
  • What is needed to participate in the opportunity?

What is BaaS for CFIs?

Simply put: CFIs enable fintechs to offer financial services that they otherwise cannot offer due to regulatory requirements.

With BaaS, CFIs can leverage their:

  • Charter:
    Giving the fintech access to the fed’s payment system, allowing fintechs to take deposits and lend money on behalf of the bank
  • BIN Sponsorship:
    Enabling the fintech to issue, process, and service debit cards
  • Compliance expertise and infrastructure:
    The CFI can leverage their existing compliance oversight structure and subject matter expertise
  • Market access:
    Access to its existing market and customer base

Why a fintech partnership with BaaS is a great opportunity for CFIs?

While some fintechs are competing directly with FIs, remember there is a partner FI behind those fintechs; sometimes multiple FIs.

Partnering with fintechs can help CFIs in many areas. Some are:

Monetization of the FI charter, existing processing and compliance infrastructure exists today. This is platform sharing business just like:

Airbnb – monetize vacation home/rooms when not in use.

Uber – monetize existing vehicles.

Expand beyond the geographic boundaries that exist today. System, process, and infrastructure exists already; why not get more out it?

Create a new recurring revenue stream at a fraction of the cost and reduce dependency on the traditional FI model.

Stay relevant and connect with demographics that may not otherwise engage with the FI directly.

Working with fintech’s will help CFIs challenge the status quo to provide superior innovations; even in the traditional brick-and-mortar FI services.

Partnering with fintechs will help to mitigate the threat to an FIs existence from other fintechs.

Success stories in BaaS and fintech partnerships

These partnerships are already happening, and many CFIs have seen rapid growth through fintech partnerships. There are many examples of successful partnerships between CFIs and fintechs. You will find a listing with the links at the bottom of this article.

Intrigued? Does this seem like a great opportunity? Is it the right fit for your organization?

Let us help you with a step-by-step process to guide you through.

Current, Lively, Lili

Bluevine, Prosper, Greenwood

Acorn, Insurtech, Upstart


Affirm, Rocket Loans, Upstart, Upgrade


Walmart, Intuit

Toast, Prosper, Lending Club


Stash, Lyft


Robinhood, Ramp

The start of your BaaS strategy is just four steps away.

We hope you found this article helpful! Stay tuned for the next one, you don’t want to miss it!