Banking-as-a-service (BaaS) is an end-to-end model that enables digital banks and financial technology or other third-party companies (fintechs) to directly connect with traditional bank systems via APIs and then build offerings on top of this regulated infrastructure.
In doing so, digital banks (such as Ally and Chime) and third-party fintech companies have the opportunity to completely reshape the landscape of the financial services industry.
To further combat online fraud, Nacha (the National Automated Clearing House Association) has changed the compliance standards for routing number and checking account verification for ACH (automated clearing house) debit transactions made over the Internet (WEB debits).