Facing the new normal: How BaaS players can meet rising industry standards and still maintain strong relationships - Tearsheet

The recent failure of the BaaS fintech Synapse highlights the critical need for both banks and fintechs to prioritize robust compliance and risk management in their partnerships.

Banks must always understand their customers and take full responsibility for compliance, reflecting a risk-averse culture that is crucial for consumer protection.

Fintechs share reponsibility by assessing their sponsor bank's capabilities, ensuring alignment in priorities between both entities to sustain their partnerships amidst increased scrutiny.

The heightened regulatory landscape signals that both parties must act proactively to avoid future failures, emphasizing that compliance and risk management must be a top priority.

Read at Tearsheet