First International Bank & Trust brings Giftly onto BaaS platform

First International Bank & Trust (FIBT) has onboarded digital gifting platform Giftly onto its bank-direct Banking-as-a-Service (BaaS) platform, Kavinu, in a move that reflects shifting dynamics in embedded finance towards greater regulatory control and operational resilience.

The programme, delivered through FIBT’s payments division Kotapay, integrates Giftly’s payout capabilities with cloud-based infrastructure and ACH processing, enabling the FinTech to scale disbursements while operating within a bank-led framework. The transition included the migration of an active programme from a previous banking partner, with over $21.8 million in balances transferred at launch highlighting the increasing complexity and scrutiny associated with switching sponsor banks in the BaaS ecosystem.

Kavinu is positioned as a bank-direct alternative to traditional middleware-heavy BaaS models, allowing FinTechs to establish closer relationships with regulated institutions. This approach aligns with a broader industry shift, as regulators and financial institutions push for clearer accountability, stronger compliance controls, and more transparent operating structures across embedded finance programmes.

For FIBT, the partnership supports growth through deposit expansion, fee-based income, and increased ACH transaction volumes, while reinforcing its risk and compliance frameworks. For Giftly, the move provides a consolidated infrastructure combining bank sponsorship and technology capabilities, supporting its plans to expand payout options and scale operations.

Trent Sorbe, Chief Payments Officer at First International Bank & Trust, said the platform is designed to support FinTech growth without diluting bank oversight. “Kavinu was built for FinTechs that need to scale without outgrowing their banking foundation,” he said, adding that the model enables embedded finance use cases while keeping control mechanisms within the bank.

Giftly CEO Timothy Bentley pointed to the importance of aligning with a banking partner that combines infrastructure with regulatory backing. “Giftly has an aggressive growth strategy and plans to expand payout options, and it helps to have a single provider that brings both the bank charter and the technology,” he said.

The development comes amid increasing regulatory focus on BaaS arrangements, particularly in the US, where concerns around programme oversight, onboarding practices, and risk management have prompted closer scrutiny of FinTech bank partnerships. As a result, bank-direct models such as Kavinu are gaining traction as institutions seek to retain greater control over compliance while still enabling FinTech innovation.

By consolidating payments processing, compliance oversight, and API-driven infrastructure within a single platform, FIBT’s Kavinu offering reflects an evolving BaaS landscape—one that prioritises scalability alongside stricter governance standards.