Banking-as-a-Service Version 2.0: A New Chapter in Bank/Fintech Partnerships

This session examines the regulatory challenges experienced by financial institutions in connection with fintech relationships. The model, commonly referred to as banking-as-a-service (aka BaaS), has been subject to increased regulatory scrutiny, to the point that BaaS-participants accounted for 13.5% of all regulatory enforcement actions in 2023. The speaker explores the prevailing themes of these enforcement actions, and identifies areas where commonsense changes could be made by FIs and their fintech partners in the current BaaS model. Attendees come away from the session with an understanding of how they might use technology to reshape BaaS and the fundamental fintech partnership structure as a means of improving oversight and control, preventing abusive or fraudulent activity, and better insulating an organization from regulatory criticism.