Thread Bank, Unit Collaborate to Expand Banking-as-a-Service [PYMNTS.com]

Thread Bank, Unit Collaborate to Expand Banking-as-a-Service [PYMNTS.com]

Originally posted on PYMNTS.com

Banking-as-a-Service (BaaS) platform Unit has teamed up with digital-first bank Thread Bank to allow companies to embed banking services into their products.

According to a Wednesday (Aug. 10) news release, those services include accounts, cards, payments and lending, all of which can be added in weeks using a single platform.

“In collaboration with Thread, Unit will be able to empower more companies to offer unique banking solutions based on industry-leading technology and partners,” said Unit CEO and co-founder Itai Damti.

Thread CEO Chris Black added: “We believe the future of banking is digital, connected, contextual, and customer-first. Through meticulously-selected partnerships and technology, our unique and differentiated banking strategy will vastly improve the way individuals and small business customers manage everyday banking tasks.”

As PYMNTS noted recently, 67% of consumers in the U.S. access their bank through digital channels, whether that means checking balances, paying bills or monitoring transaction alerts. And Bank of America CEO Bryan Moynihan said recently that 85% of deposits are handled or enabled digitally, with just 15% even involving a teller.

Unit and Thread Bank say the partnership has already been rolled out to a number of companies, who are set to launch banking and credit products in the coming weeks.

“Thread Bank is one of four bank partners powering Unit’s Banking-as-a-Service (BaaS) platform,” the release said. “While most BaaS providers rely on a single bank partner, Unit maintains multiple bank relationships to support the widest range of financial products and expand capacity for clients.”

The partnership comes three months after a major milestone for Unit. In May, the company announced it had raised $100 million in a Series C round, bringing its valuation to $1.2 billion. That made Unit the first BaaS company to reach unicorn status, a term for when a private company is valued at more than $1 billion.