Jan 6, 2023

Unpacking BaaS Roles and Responsibilities: Compliance and Tools

Unpacking BaaS Roles and Responsibilities: Compliance and Tools

Unpacking BaaS Roles and Responsibilities: Compliance and Tools

Unpacking BaaS Roles and Responsibilities: Compliance and Tools

Banking as a Service (BaaS) brings together financial institutions and fintech startups, providing a comprehensive process that allows other businesses to create their own banking services. In this post, we'll take a look at the roles and responsibilities in BaaS, focusing on regulatory and program management, governance, oversight, and compliance.


Regulatory Management in BaaS: KYC, BSA/AML, Fraud Monitoring, and More

Regulatory management is a pivotal part of BaaS roles and responsibilities. The program enforces and oversees systems to make sure they are in compliance with laws including KYC, BSA/AML, fraud monitoring, and others.

  • Hummingbird: This RegTech startup offers solutions for AML, KYC, and BSA compliance.

  • Ascent: This AI-driven platform tracks changes in regulatory requirements and guidelines.


Program Management in BaaS: From Card Distribution to Customer Service

Program management covers a variety of tasks, from maintaining bank memberships, generating account statements, managing card distributions and tax reporting, to handling customer service.

  • Marqeta: Marqeta offers an API for card issuance and management that simplifies card distributions and cancellations.

  • Gladly: A customer service platform that can help manage and record customer complaints and disputes.


Governance in BaaS: Ensuring Smooth Operations

Governance within BaaS roles and responsibilities includes managing an operating account at the bank, managing servers and networks, and developing disaster preparedness and recovery plans.

  • LogicMonitor: This tool offers cloud-based network monitoring to keep operations running smoothly.

  • Datto's SIRIS: Provides disaster preparedness and recovery planning to minimize disruptions.


Oversight in BaaS: Data and Security Management

Oversight in BaaS is crucial to ensure adherence to regulations and safeguard customer data. Both the bank and the program must use customer account data solely to perform their duties and not for marketing or sales.

  • DataGrail: This platform helps businesses maintain data privacy compliance.

  • Cognigo: Provides AI-powered data protection and privacy solutions.


Compliance in BaaS: Meeting Regulatory Standards

Finally, compliance forms a fundamental part of BaaS roles and responsibilities. This involves creating a compliance management policy, developing a training program, creating a complaint management policy, and ensuring data retention as per regulations.

  • WorkRamp: Helps in the creation of comprehensive training programs.

  • ComplyAdvantage: Their compliance-as-a-service solution automates risk processes and streamlines workflows.


In sum, BaaS revolves around the clear understanding and division of roles and responsibilities between the bank and the program. By efficiently managing regulatory and program management, ensuring solid governance and oversight, and maintaining strict compliance, an effective BaaS system can be rolled out. The journey becomes even smoother with the help of the right compliance tools for BaaS.

Next Article

Slicing Fintech Compliance: Insights from First Fed Bank's FDIC Order

Slicing Fintech Compliance: Insights from First Fed Bank's FDIC Order

Slicing Fintech Compliance: Insights from First Fed Bank's FDIC Order

Slicing Fintech Compliance: Insights from First Fed Bank's FDIC Order

Better compliance and product insights now

Gain insights and take actions to make your financial institution compliant and increase customer happiness

Better compliance and product insights now

Gain insights and take actions to make your financial institution compliant and increase customer happiness

Better compliance and product insights now

Gain insights and take actions to make your financial institution compliant and increase customer happiness

Better compliance and product insights now

Gain insights and take actions to make your financial institution compliant and increase customer happiness

© Copyright 2024, All Rights Reserved by Sway Technology, Inc. DBA Tennis Finance

© Copyright 2024, All Rights Reserved by Sway Technology, Inc. DBA Tennis Finance

© Copyright 2024, All Rights Reserved by Sway Technology, Inc. DBA Tennis Finance

© Copyright 2024, All Rights Reserved by Sway Technology, Inc. DBA Tennis Finance