Banking-as-a-Service - opportunity and risk management

Banking-as-a-Service (BaaS) brings a whole host of opportunities to both banks and fintechs, writes Farnoush Mirmoeini of KYC Hub. Fintechs can go to market more quickly with new products and create applications that provide new services to their customers. Banks, for their part, have an extra distribution channel, the ability to acquire more customers and the opportunity to cement their position as an infrastructure provider, as well as being a regular bank. Yet while BaaS brings undoubted benefits to the financial services ecosystem, it is important to recognise that it also presents risks to BaaS providers, particularly around financial crime.

Farnoush Mirmoeini (https://www.linkedin.com/in/farnoush/) is co-founder of KYC Hub (www.kychub.com).

Banking-as-a-Service (BaaS) brings a whole host of opportunities to both banks and fintechs, writes Farnoush Mirmoeini of KYC Hub. Fintechs can go to market more quickly with new products and create applications that provide new services to their customers. Banks, for their part, have an extra distribution channel, the ability to acquire more customers and the opportunity to cement their position as an infrastructure provider, as well as being a regular bank. Yet while BaaS brings undoubted benefits to the financial services ecosystem, it is important to recognise that it also presents risks to BaaS providers, particularly around financial crime.