HUMBL Inc (HMBL)

[OMOLIVES]

Here...learn something:

Banks offering Banking as a Service

When TransferWise wanted to enter the US market early in its life, it was confronted with the requirement to get regulated in every US state which would have taken both a great deal of time (several years) and millions of dollars in cost. Since gaining a foothold in the US market was more important at that time - i.e. speed to market - it partnered with a small regional bank called Community Federal Savings Bank (CFSB) based in New York. CFSB had been taken over a few years earlier in 2012 and was regulated by the Office of the Comptroller of the Currency and had a Federal (read national) banking license. Seeing a gap in the market, CFSB was able to sponsor TransferWise, becoming the regulated entity in the provision of TransferWise’s core international payments product. TransferWise was technically a servicer (similar to an introducing agent) of the bank and for many years, CFSB was the one offering TransferWise’s services.

As TransferWise grew, it made the decision to obtain the state by state licenses it required to offer its payment services itself. CFSB still provides some services to TransferWise and has itself become a platform for Fintechs and payment companies to offer their services in the US with clients such as payments enabler Currencycloud.

And whilst TransferWise was on its way to its own licensing for its core cross-border payments product, it had bigger product ideas - namely launching a multi-currency account sitting on top of a debit card which it called a Borderless Account. In the UK, an EMI license was sufficient and the company was already into the Faster Payments network. The US was another matter.

It's worth noting that a number of other relatively small US regional banks also serve other Fintechs in cross-border payments such. For instance, Metropolitan Commercial Bank works with Revolut and Sunrise Banks N.A sponsors Remitly, which facilitated the recent launch of Passbook, a bank-like checking account product. These banks also allow for FDIC insurances to be passed through to customers, protecting the funds held on deposit. Only a handful of the legacy (read older) banking players such as Goldman Sachs GS +0.7%, Greendot and BBVA have made major efforts to offer similar services.

https://www.forbes.com/sites/danielwebber/2020/07/30/how-payments-fintech-is-using-banking-as-a-service-to-drive-growth/?sh=23c2977b4b9b

Said institution has been noted as taking on very risky business and a lot of it.