For years, Banking as a Service (BaaS) was sold as a silver bullet for community banks to solve their deposit problems and grow non-interest income. Through its evolution, the industry has learned that it is not enough for BaaS to simply be programmable. For innovation in banking to flourish, without sacrificing the safety and security of the banking ecosystem, BaaS must also be governable.
With the bankruptcy of Synapse and the resulting consent orders, sponsor banks have been forced to prove their control over outsourced operations.
This week on Breaking Banks, Jason Mikula, who wrote the book on BaaS, literally!, and is publisher of FinTech Business Weekly; Ellen Linardi, Chief Product and Technology Officer at Synctera; and Reid Whiting, President of Lincoln Savings Bank join Jason Henrichs to talk about sponsor banking. Is it growing up or catching up?
Interested in learning more? Check show notes for a link to a paper, a blueprint really, for the choices a bank that wants to play in sponsorship banking will need to make.
White Paper Link: Orchestration, Control, and Observability: A New Framework for Sponsor Banking https://alloylabs.docsend.com/view/gs8925x8yeii5vxg