# Banking as a Service

*Banking & Payments — Finicade finance glossary*

Banking as a service lets a non-bank offer accounts, cards and payments on a licensed bank's infrastructure. It's what makes embedded finance possible — a retailer offering a branded account without becoming a bank. The regulatory weak point is accountability: the sponsor bank remains responsible for compliance it doesn't directly perform, and several US enforcement actions have followed exactly that gap.

**Also known as:** BaaS, embedded finance, sponsor bank

**Related terms:** [Neobank](https://finicade.com/glossary/neobank), [Bank Charter](https://finicade.com/glossary/bank-charter), [Open Banking](https://finicade.com/glossary/open-banking), [Know Your Customer (KYC)](https://finicade.com/glossary/know-your-customer), [Deposit Insurance](https://finicade.com/glossary/deposit-insurance)

Source: https://finicade.com/glossary/banking-as-a-service