Erebor shifting toward API fee revenue

The strategic point is that API revenue lets Erebor earn more from customer activity than from customer cash balances alone. Deposit spread income rises only when Erebor gathers more deposits and reinvests them, but BaaS revenue can rise when fintech customers send more wires, move more ACH, issue more payments, or add more end users on top of Erebor’s rails. That makes revenue growth less tied to balance sheet growth and gradually makes Erebor look more like Column or Lead Bank than a pure deposit spread bank.1 2 3 4

• Today the base business is still deposit driven, with about 68% of Q2 revenue from interest on deposits and 32% from noninterest income. But the API layer already serves fintechs like Yellow Card, Infinite, and Internet Backyard, giving Erebor a second engine that scales with payment activity and account usage, not just deposit balances.1 2
• This is how vertically integrated BaaS banks change their mix over time. Lead Bank grew noninterest income to 45% of revenue in 2025, and that line grew faster than net interest income as it captured interchange, processing, and BaaS fees from programs like the Stripe, Bridge, Visa stablecoin card stack.3
• The mechanics are simple. In BaaS, the bank can charge account fees, program fees, payment fees, and a small share of transaction economics each time a customer product moves money. Those fees can compound as a fintech customer grows users and payment volume, even if the operating cash sitting at the bank does not rise in lockstep.4

If Erebor keeps adding fintech infrastructure customers, the business should become less constrained by deposit gathering and less exposed to the swings of a narrow, high balance depositor base. The next phase is a mix shift toward repeatable fee revenue, with deposits funding the balance sheet and APIs turning Erebor into a higher velocity banking platform.1 2 3 4