What is BIN Sponsorship and Why Do Fintechs Need It?
BIN sponsorship is a partnership between a licensed bank or principal card issuer and a fintech or non-bank entity that wants to issue cards. The licensed bank provides access to its Bank Identification Number (BIN), allowing the fintech to offer card services without holding a full card scheme licence. This is essential for fintechs aiming to launch card products quickly, manage compliance, and access global card networks without building infrastructure from scratch.
Through BIN sponsorship, the sponsor bank oversees regulatory compliance, risk management, and transaction processing, while fintech focuses on innovation, customer experience, and program management. BIN sponsors provide access to payment rails, authorisation, and settlement capabilities that fintechs could not manage independently.
Monavate plays a crucial role in this ecosystem. It enables fintechs to operate BIN-sponsored programs efficiently by managing card issuance, transaction routing, spend controls, reporting, and compliance. This allows fintechs to scale globally while maintaining transparency and operational efficiency. By acting as the bridge between fintechs and licensed networks, Monavate makes card programs accessible, secure, and manageable, turning a traditionally complex process into a streamlined, user-friendly solution.