In Canada, a challenger bank is a relatively new type of digital bank that competes directly with the big banks, operating without brick-and-mortar branches and offering banking services through a mobile app or website. Challenger banks are typically built on Banking as a Service (BaaS) technology platforms. This approach allows emerging challenger banks to partner with a pre-existing Schedule I bank in order to bypass the timely application process and regulatory obstacles associated with getting a full Schedule I banking license.