The October 2022 Aite-Novarica Group report on the bifurcation of Banking-as-a-Service (BaaS) and embedded banking explores how these models differ in scope, integration, and customer experience. BaaS provides banks’ infrastructure via APIs, often for domestic purposes, while embedded banking integrates financial services directly into non-bank customer journeys. The study notes that poor BaaS performance can cause operational issues, leading partners to switch providers. Success requires partnering with regulated, bank-licensed entities, leveraging full-stack APIs, and balancing revenue growth with compliance to maximize speed to market and long-term scalability.

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