Provident Bancorp in Amesbury, Mass., is the latest bank to report traction in its Banking-as-a-Service (BaaS) platform.
The $1.8 billion-asset company said in a press release Friday that deposits with BaaS customers increased by 58% in the first quarter from a quarter earlier, to $94.3 million.
Provident said its portfolio of digital asset loans decreased by 7% from a quarter earlier after a client paid down a $35 million credit line. The company originated $29.1 million in new digital asset loans during the first quarter.
Other banks are making progress with BaaS.
Coastal Financial in Everett, Wash., said total loans in its BaaS division increased by 49% in the first quarter from a quarter earlier, to roughly $515 million. BaaS-related deposits at the $2.8 billion-asset company rose by 26% to $900 million.