BaaS platform Swan to expand internationally on $16 million funding round

In 2014, Nick Ogden and I drew up what we felt was true Banking-as-a-Service (BaaS). This was a bank that had full banking capabilities, was not dependent on any other financial service provider and would have the capabilities for other regulated businesses (fintech, banks, credit unions, building societites) to provide true banking services. As a BaaS provider, having the actual ability to hold the funds, to provide FSCS protected accounts and capabilties and be the ones with the liquidity to move around for payments was key. It meant customers would have all the capabilties of one of the big incumbent banks without 95% of the overhead in costs or operational complexity. It meant the market could become far more competitive and that innovation could flourish. We called the vision ClearBank and built Banking-as-a-Service (BaaS).

Since 2014 BaaS has morphed into something much wider, most implementations are missing the underlying deposit taking banking license. For me, this is not true BaaS, no, its all about simplifying access to banking services. But a puriest definition really doesnt matter.

The story here is that there is massive value in simplifying access to banking services. It's a problem that is global, it needs solving and is a highly valuable proposition. This all leads to richer platforms, better solutions, the term embedded finance is possible and ultimately better customer outcomes.

I think this is fab news and I welcome the continued growth of providers of BaaS in all the variations BaaS now means...Big congratulations...