The Tearsheet Guide to Non-Intuitive and Interesting Uses for Banking as a Service

Banking as a service, Business of Fintech, Embedded Finance, Keys to growth

Looking back and moving forward: How fintechs will beat back the dark clouds of 2024, capitalize on trends like AI, and build resilient firms in 2025

• Last year was full of uncertainty for the fintech sector. VC winter did not ebb and at the same time regulators closed the parameter around sectors like BaaS, making these firms hyper-focused on compliance.
• In this new year we look at how fintechs fared in 2024 and explore what shifts we can expect from these companies in this new year. 

Banking, Banking as a service

“We are not just going to take on business for the sake of taking on business”: Fifth Third’s Dan Dall’Asta on how Newline structures BaaS partnerships

• Fifth Third's embedded finance play in the form of Newline has been yielding the firm results with the bank’s commercial payments revenue reported to have grown by 10% at the end of Q3 compared to the same quarter last year. 
• The secret to Newline by Fifth Third's success is prioritizing having a standardized compliance and oversight model and only working with clients that want to be in it for the long haul.

Banking, Banking as a service, Creating win-win partnerships, Embedded Finance

The embedded finance playbook: Partner banks need quality not quantity 

• As consumer demand grows, sponsor banks—especially smaller ones—face intensified FDIC enforcement actions on third-party relationships.
• By prioritizing a "quality over quantity" mindset, Grasshopper Bank is navigating complex regulatory demands while realizing embedded finance growth.

Banking as a service, Creating win-win partnerships, Embedded Finance

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

• How can financial industry participants rethink their strategies to manage risk and compliance effectively while maintaining healthy relationships in the BaaS ecosystem?
• Industry experts weigh in on whether this is the right moment for FIs to become partner banks, how businesses can choose the right BaaS provider, and how providers can deliver satisfactory BaaS services.

Banking as a service, Business of Fintech, Creating win-win partnerships, Embedded Finance

How to run a BaaS relationship, a guide for fintechs and banks

• The biggest problem in the current intermediary-reliant BaaS set up is that it makes it very hard to isolate who is responsible for what, and in so doing, complicates risk mitigation strategies.
• These relationships have now come home to roost and are forcing sponsor banks as well as fintechs to build partnerships that are clearer and more stable from the outset.