Navigating the BaaS Revolution

In Banking and capital markets

With decades of banking and FinTech experience and a team of over 4,000 dedicated industry professionals and technology specialists, EY BaaS bespoke solutions are designed to align with your bank’s needs, while alleviating such burdens as regulatory response, risk identification and management.

How EY can turn BaaS risk and compliance challenges into operational success

In the rapidly evolving Banking as a Service (BaaS) landscape, regional and community banks are uniquely positioned to make a significant leap forward. Leveraging existing infrastructure and banking expertise, these banks are forging invaluable partnerships with FinTechs to innovate, diversify, and grow their businesses. The result? An expansion of innovative, seamless digital finance services offered to a wider customer base.

Yet, the emerging promise of BaaS is not devoid of hurdles. The scale of a bank’s activities is not measured by the size of its balance sheet, but by the perceived complexity of their FinTech partnerships, relating to technology, operations and compliance. Venturing deeper into BaaS has its rewards, but banks must contend with intense regulatory pressures and heightened scrutiny, leaving many feeling unprepared to successful manage the challenges across their risk management and operational functions supporting their BaaS business.

This necessitates a robust and coordinated risk management approach across the enterprise to demonstrate the bank’s identification, understanding and mitigation of risks, commensurate with its activities. Enter EY – our teams collaborate with BaaS banks across the maturity spectrum to support their risk transformation journey, commonly in three distinct phases. Click on each tile to know more about the phases:

Banking as a Service: Access our full report

Regulators view Banking as a Service (BaaS) partnerships differently than traditional banking, requiring additional expertise and supplementary supervisory procedures. The Fed’s recently announced Novel Activities Supervision Program signals its commitment to responsible financial innovation in the BaaS realm. Clear guidance for BaaS providers’ risk management programs will enable banks to grow responsibly and serve consumers in innovative and more efficient ways. Download our full report to learn more.

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Our suite of accelerated risk and compliance remediation solutions

At EY, we acknowledge that the journey your bank takes is as unique as your institution. Hence, our approach is tailored to align with your bank's specific needs, delivering effective risk and compliance solutions. Our teams help you drive operational and regulatory efficiencies, cultivating credible, trusting relationships with regulators, while enabling cost-savings – factors vital for nurturing your growth aspirations.

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