Banking, Member Exclusive

Banking briefing: Partners in peril

  • BaaS is in trouble. Regulatory storm clouds are gathering and it seems partner banks are about to find it a lot harder to dive into (and maintain) BaaS relationships than they did before. 
  • It seems like BaaS players like banks, middleware companies, and fintechs had time to bloom and are now experiencing a regulation-induced contraction.
close

Email a Friend

Banking briefing: Partners in peril

BaaS is in trouble. Regulatory storm clouds are gathering and it seems partner banks are about to find it a lot harder to dive into (and maintain) BaaS relationships than they did before. 

What’s going on with BaaS? 

Recently two BaaS-related enforcement actions came out, one which detailed that Blue Ridge bank is now deemed to be in “troubled condition” and second, which stated that Choice Bank violated the Bank Secrecy Act.

In the case of Blue Ridge Bank, regulatory tensions have been brewing for some time: In 2022, the OCC demanded that Blue Ridge Bank better its oversight protocols for third-party fintech relationships. Due to the order, the bank was prohibited from starting new contracts with fintechs or providing any additional products to its current partners.

2024 has not made things any easier for the bank, with the most recent move by the regulators stating that it failed to right the wrongs of its fintech partnerships. However, CEO of Blue Ridge Bank, Billy Beale, says that the OCC’s findings are based on the bank’s activities till June but are not representative of its work since then

So, what has Blue Ridge been doing to right the ship?


subscription wall for TS Pro

0 comments on “Banking briefing: Partners in peril”

Member Exclusive

Letter from the editor: Banks don’t have a Gen Z problem – they have a major issue with UX

  • As the largest generation in history, getting Gen Z right is an existential issue, particularly for plain-vanilla financial institutions. 
  • But shifting the goalposts can be an effective way forward for banks and other FIs as they build for the future.
Zachary Miller | April 17, 2024
10-Q, Member Exclusive

On all things Jamie Dimon

  • In his annual letter to shareholders, Dimon shared his perspectives on a range of subjects. However, he placed a distinct focus on JPMorgan's efforts to advance its capabilities through AI.
  • On the same day, the company's annual proxy statement was also made public. Besides zeroing in on the growing significance of AI in banking, it highlighted the board's priority of planning for an orderly CEO transition in the medium term.
Sara Khairi | April 15, 2024
Member Exclusive, Payments

Payments Briefing: Exploring JPMorgan’s approach to payments through embedded banking solutions

  • JPMorgan identified a demand for the offering based on requests from its corporate clients, who highlighted the need for comprehensive financial solutions embedded into their own ecosystems. 
  • This year, JPMorgan has actively expanded its presence in the payments sector, aiming to develop new growth opportunities and deliver a broader range of interoperable products and services.
Sara Khairi | April 10, 2024
10-Q, Member Exclusive

A closer look at JPM’s Chase Media Solutions

  • JPMorgan Chase has introduced its newest endeavor, a retail media network named Chase Media Solutions. 
  • Breaking away from its traditional banking methods, Chase has embraced a rather unexpected and contemporary approach by stepping into a market already under the sway of major retailers.
Sara Khairi | April 08, 2024
10-Q, Member Exclusive

Who stands to benefit [or suffer] from the Visa and Mastercard settlement?

  • While the Visa-Mastercard settlement news is still fresh and unfolding, understanding the degree to which different players —  merchants, banks, or consumers — truly benefit or stand at a disadvantage in the value chain will necessitate clarity once the dust settles.
  • Currently, it remains an intricate conundrum to unravel.
Sara Khairi | April 01, 2024
More Articles