Lesson 3 of 6
Banking-as-a-service: the licensed partner behind the brand
In banking-as-a-service, a non-bank brand offers the loan and a licensed bank or lender stands behind it with the licence and, often, the money. The work can be divided by contract; the responsibility to the borrower and the regulator stays with the licensed partner. The loss is divided too, and that division deserves the closest reading.
Published 12 October 2026 · Listen to this lesson
In this lesson
- What banking-as-a-service is
- How a lending arrangement works
- The licence can be shared; the responsibility cannot
- Who bears the loss: a worked example
- Risks the supervisors point to
- Questions for both sides