Modak Partners with Legend Bank as BaaS Sponsor Bank

On August 14, 2025, Modak announced a Banking-as-a-Service sponsor bank partnership with Legend Bank, N.A., with the relationship effective since June 2025. Under the arrangement, Legend Bank serves as Modak's regulated sponsor bank, providing the core banking infrastructure for the fintech's parent accounts and youth debit card program. Modak is a financial app designed to help families build financial literacy for kids and teens.

CEO Madhu Yalamarthi cited Legend Bank's transparency, security, and daily ledger reconciliation capabilities as key factors in the selection. Legend Bank is a Texas-based community bank with over $1.1 billion in assets and 14 branch locations across North Texas. The bank supports fintech partnerships through its dedicated embedded banking solutions division, branded as integratelegend.bank.

The partnership underscores the continued demand among consumer-facing fintechs for reliable BaaS sponsor bank relationships amid heightened regulatory scrutiny of the space.