SaaS or BaaS?

Updated on 29 Jun 2023

The SaaS (Software as a Service) version of is sometimes confused with BaaS (Banking as a Service), hence the expectations of financial licensing and compliance services along the software itself. So let us clarify the distinction between the two models in question.

SaaS (Software as a Service)

It is a software distribution model in which a third-party provider hosts and delivers applications over the Internet to customers. 
In the case of, our customers can use the software application hosted on a cloud server and maintained by the team instead of spending their own resources on it. The main databases are still under the full control of the customer team and are hosted on their own servers, which are not accessible to the software or team members.

SaaS is beneficial if you need:

  • A lot of customizations
    SaaS offers businesses the flexibility to customize the software according to their specific requirements. It allows for tailored branding, user interfaces, and integration with existing systems, enabling businesses to create a unique and personalized user experience.
  • Control over data and infrastructure
    With a SaaS version of Platform, customers retain control over their data and infrastructure. They can choose to host their data on their own servers or through a trusted cloud provider, ensuring security and compliance while maintaining control over sensitive customer information.
  • Scalability and cost-effectiveness
    A SaaS model offers scalability, allowing businesses to easily adjust resources based on demand. This scalability eliminates the need for upfront infrastructure investments and provides cost-effective pricing models, as businesses only pay for the resources they utilize.

BaaS (Banking as a Service)

The banking-as-a-service (BaaS) model involves licensed banks sharing their infrastructure and services with third-party providers, who then offer them to fintech companies. BaaS providers usually offer a complete package that includes regulatory compliance, licensing, and access to banking partners. 

BaaS software is beneficial if you need:

  • Quick time-to-market
    BaaS enables companies to bring their fintech products to market quickly by leveraging existing infrastructure and services offered by licensed banks. This eliminates the need to build banking capacity from scratch, accelerating the product development and deployment process.
  • Easier regulatory compliance
    BaaS providers often take care of regulatory compliance and licensing requirements, allowing companies to focus on developing their core product capabilities. By relying on the infrastructure and expertise of BaaS providers, companies can ensure financial compliance and reduce the complexity associated with acquiring and maintaining licenses.
  • Banking partnerships
    BaaS software provides access to established banking networks and partnerships. This allows businesses to leverage the banking relationships of the BaaS provider, enabling them to offer a broader range of financial services and tap into existing banking infrastructure without the need for individual partnerships. is not a BaaS provider, so it cannot assist its customers in obtaining a financial license.

So, if speed to market, regulatory compliance, and access to established banking partnerships are crucial for your venture, you should look for a BaaS provider that can take care of these things. In this case, is unfortunately not the best choice.

But if customizability, data control, and scalability are important, and you can handle the licensing and compliance on your side, the SaaS version of is right for you.