The book finally arrived about three weeks ago after incessantly checking with the publisher on ETAs and tracking numbers. I read the first eight chapters in one sitting—it felt like a walk down banking memory lane.

This book is well-researched, to say the least. It covers a wide range of topics—from the popularization of retail banking and the early days of banking technology to how various banking products profit from customers. It also delves into the ever-changing landscape of banking regulations, equipping readers with knowledge that extends beyond the basics.

I particularly enjoyed the chapters on the early days of banking technology, where fintechs and banks were digging tunnels from both ends—some meeting great success like the Great Continental Railway, while others faced a quick demise. Some may argue that, collectively, we are still struggling with the disconnect between how banks view fintech relationships and how fintechs hope those relationships will evolve.

At the center of this book, of course, is the topic of Banking as a Service. If you’ve read the book and are now nosing around for my take, chances are you already know what BaaS is all about and are familiar with some of the headline-grabbing fiascos unfolding before our very eyes.

My personal stance on BaaS? It’s a necessary evil. The big banks are busy with bigger plays, like Apple Card with Goldman Sachs (which is also looking shaky), and their innovation mostly stops at co-branding airline credit cards. Nothing in the past 50 years has really forced banks to change.

So why innovate when big-bank lobbyists have done, and continue to do, a great job maintaining the status quo? And why Banking as a Service? Well, it’s capitalism. Money talks, and venture capitalists saw an opportunity amid inaction and shifting consumer expectations. With the rise of the internet and mobile phones, consumers’ demand for digital services has skyrocketed. Online banking, payments, and peer-to-peer transactions have collectively attracted hundreds of billions of dollars into fintech.

However, one thing VCs can’t buy is our current banking regulatory framework (at least in the U.S.—other regions have adapted more intelligently). To truly enable fintech innovation, delivering on the promise of instant credit and payments, you either need to be a bank or partner with one.

Big banks aren’t exactly eager to hand over their clients to fast-moving fintechs. So, fueled by venture money and consumer demand, a new breed of banks emerged. Most consumers have never heard of these banks—many of which are listed in Jason’s book.

These banks exist solely to serve well-funded fintechs.

To bridge these new banks (whether a single-branch institution or a struggling bank acquired by new management), they must employ technology to export banking products digitally or work with intermediaries. Almost all of these tech companies emerged within the past seven or eight years—some well-built, others not.

Blinded by customer acquisition, triple-digit year-over-year growth, and a sense of mutually assured success, banks and their technology partners dove headfirst into the deep end—hoping revenue and profit would be the ultimate cure-all. Some emerged with battle scars, while others crashed and burned—taking hundreds of thousands of consumers as collateral damage.

Jason’s Banking as a Service reminds us that banking innovation is inevitable, and technologists worldwide are watching how BaaS unfolds in the United States. But the innocent bystanders caught in the crossfire when these relationships collapse face real, painful consequences. Missing deposits, irreconcilable ledgers, and blocked access to hard-earned money aren’t just simple SQL errors that can be wiped away. Real and lasting consequences should be considered—both by fintech-friendly banking executives and fintechs themselves.

Whether you’re new to the industry or an old guard, this book is for you. I’m in the process of reviving my FinTech Fundamentals class at a local university, and this book will definitely be on the syllabus as required reading.

To get your copy, head over to LendAPI’s Fintech Business Weekly, and be sure to follow Jason Mikula on X and LinkedIn, and subscribe to his weekly newsletter. We wish him well.