The Biggest Small Banks

A decade ago, it was widely assumed financial technology companies posed a threat to the banking industry. No longer. A growing group of banks have figured out a way to turn a potential threat into a profitable venture. A once-nascent business line, banking as a service gives banks a potentially lucrative way to leverage their charter by partnering with fintechs and nonbanks that want to provide banking services to their customers. Several dozen sponsor banks now dominate the space, providing access and connections for companies that want to gather deposits, do business in the regulated financial services space, or use…