Small-to-Mid-Sized Banks have two choices: Innovation or Obsolescence. To survive and thrive, banks must stay ahead of peers in terms of products, services, channels, CX, efficiency, process transformation, and an ecosystem that attracts new & younger customers where they are (which is not the branches). Embedded Finance and BaaS offer an exciting new business line to traditional banks. There are many ways to do it wrong, increasing operational risk and regulatory scrutiny.
Do it right. Empower your board & C-suite to make informed decisions about whether, when, and how to launch a BaaS program. Put the right systems, processes, reporting and governance frameworks into place from day zero. Make sure every aspect of your business line is “regulator ready”. Early BaaS pioneers learned many lessons the hard way. Build on their experience and launch your BaaS line of business in a more mature, sustainable and compliant model.