nbkc bank has applied to the FDIC to assume the consumer Banking-as-a-Service portfolio of LSBX, Lincoln Savings Bank’s BaaS division.
US-based nbkc bank expects the transaction, which is subject to regulatory approval, to close in early 2027, increasing the scale of its BaaS business and its deposit base. Financial terms were not disclosed. The LSBX programmes will be merged into nbkc’s BaaS business and offered under the nbkc brand. The deal follows Lincoln Bancorp’s announcement in September 2026 that it will merge into Equity Bancshares.
How Banking-as-a-Service works
Through BaaS, banks allow fintech companies without banking charters to offer products such as deposits, current accounts, debit cards, and personal loans to their customers. Customers use the fintech’s app, while their accounts are opened with the partner bank, typically on a private-label basis. Fintechs gain the ability to offer banking products, while banks gain access to the fintechs’ retail customers.
nbkc bank has around 13 BaaS relationships with fintech companies, approximately 3.6 million BaaS customers, and 30 employees dedicated to its BaaS business. The bank, which has operated for more than 25 years, is a community bank with a nationwide online presence, offering mortgage, consumer, and business banking alongside its BaaS services. It also founded Fountain City Fintech, an accelerator for fintech startups.
Continuity for LSBX customers
Michael Bartkoski, President and CEO of nbkc bank, described the transaction as a natural fit and an opportunity to keep growing the bank’s BaaS business. According to Bartkoski, it will strengthen nbkc’s deposit base and build on an established programme, and the bank’s investment in its BaaS offering means it can take on a transaction of this scale with confidence in the customer experience it can provide.
Sean Willett, CEO of Lincoln Savings Bank, stated that nbkc is a suitable successor for LSBX customers, noting that the bank is known for combining technology with personal service. According to Willett, Lincoln Savings Bank is confident that this approach will serve LSBX customers well. Under the agreement, the LSBX programmes will move to nbkc rather than remain with Lincoln Savings Bank as its parent completes its merger with Equity Bancshares.
