BaaS vs. DIY: A practical guide for fintech founders choosing their infrastructure strategy
- Scott Bass
- May 12
- 3 min read
To build or not to build? It’s one of the biggest decisions you’ll make.
When launching a credit card or lending product, one of the first decisions you face is how to architect your infrastructure.
Should you choose a turnkey Banking-as-a-Service (BaaS) platform? Or should you DIY it, stitching together all the vendors yourself?
There’s no universally right answer. Both have pros and cons and how you weigh them is unique to your goals. But think carefully: your decision now will shape your flexibility, economics, and timeline down the road.
What Exactly Is a BaaS (or LaaS) Platform?
Over the past decade, a new wave of infrastructure providers has emerged, promising to help fintechs launch faster without needing to build every piece from scratch.
These Banking-as-a-Service (or Lending-as-a-Service (LaaS)) platforms generally offer:
Loan application processing
Account opening and ledgers
Interest calculation and billing
Loan servicing and payment processing
Compliance monitoring and reporting
Sponsor bank relationship management
Ancillary services like fraud, statements, and disputes
They aim to offer a one-stop shop: wraparound functionality that lets you focus on customer experience and distribution while they handle the plumbing.
So What’s the Catch?
The tradeoff is in control and economics.
BaaS providers operate full-stack infrastructure businesses, and their value comes at a cost. That cost often includes:
A material share of your program’s unit economics
Constraints on customization and roadmap flexibility
Less control over vendor choices, servicing workflows, and compliance posture
For many early-stage companies, the ease BaaS offers is worth the loss of flexibility, profit, and control.
The Alternative: Build Your Own Stack
Founders who choose not to go the BaaS route must assemble and manage their infrastructure directly. That usually involves integrating and orchestrating multiple systems, including:
KYC provider
Loan Origination System (LOS)
Loan Management System (LMS)
Payment processor
Card fulfillment and rewards
Customer support and back office BPO
Customer-facing UI and dashboards
This path takes more time and effort upfront. You need to source and sign contracts with many vendors and integrate them yourself. But you gain complete ownership of the customer experience and the economics.
You’re not locked into someone else’s roadmap. You can optimize for your specific product thesis. And you keep more of the value you create.
So Which One Should You Choose?
It comes down to one core question:
Is lending a primary revenue driver or is it a product extension?
If your credit product is a strategic layer (e.g., a rewards card to deepen user engagement), then a BaaS platform may be the right call. You’ll get to market faster and outsource the heavy lifting.
But if you’re relying on your lending product to drive meaningful revenue and margin, then you’re better off building your stack. It’s more work, but the long-term payoffs—in flexibility, control, and profitability—are significant.
How Ensemblex Helps
We work with fintech founders at both ends of this decision. Some come to us leaning toward BaaS but want to pressure test their assumptions. Others know they want to own their stack and need help building it right.
In either case, we help our clients:
Evaluate tradeoffs and vendor options
Design end-to-end infrastructure strategies
Launch credit products that are bank-ready and scalable
Align technology, operations, and compliance from day one
We’ve been building credit products for decades. We know what it takes to go from a blank slate to a live program. We can help you create exactly what you envision and avoid costly missteps along the way.
Figuring out your build vs. buy strategy?
Talk to Ensemblex.
We’ll help you map the infrastructure path for your lending product suited to your business goals, not someone else’s stack.