What is the value chain of the banking-as-a-service industry?

The infrastructure model and business proposition of banking-as-a-service is that BaaS providers can offer services to small businesses, which include fairly well known neobank that provide services to small businesses in the States.

Let's just say a coffee shop, they want to have a small business bank account, but if they don't want it to get fleeced for $25 a month from Bank of America or someone, they will go to this particular neobank and open up a small business bank account, they'll go through a similar onboarding process: name, company name, company, EIN, and company address, director’s name as a more beautiful user experience. 

BaaS platforms tell them what KYC information to capture. And then BaaS platforms provide that underlying banking platform for them to open up bank accounts. So at that point we will then help them issue a branded card, so the bit of plastic, or a virtual card that can be tokenized into Apple Pay or Google Pay, et cetera.

All these BaaS platforms, the likes of Unit, Synapse, Galileo, will then provide Fintechs the ability to extra out that branded Mercury. So Mercury, the small business neobanks want to receive a payment into their routing and account number, then that would be via a code number.

If that small business user was using an online website and was working with a Stripe, for example, Stripe would be taking the payment from the website and they would be sending it to the bank account that Synapse etc is facilitating for them. 

So the value proposition of BaaS platforms is that they allow you to open up deposit accounts, savings accounts, clearing accounts, debit cards, credit cards, loans, and basically any financial product that you can get from a bank, they will offer it to a developer via APIs.