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