Sponsor Banks Discover That Deposits Don’t Have to Sit Still

Banking-as-a-service has traditionally had sponsor banks for doing everything themselves: issuing accounts, holding deposits, processing payments and financing lending. But latest earnings from two sponsor-bank operators suggest some flexibility in the model, where deposits can be managed independently from the FinTech relationship itself. First Internet Bancorp indicated that its banking-as-a-service fee revenue increased 172% from a year earlier while approximately $2.4 billion of FinTech depo