Demystifying BaaS and Regulatory Exams – Activate at Money 20/20 Highlights

How banks with banking as a service (BaaS) programs can prepare for and ace regulatory exams.
Angela Bao
Angela Bao
November 14, 2023
BaaS and Regulatory Exams

Compliance and risk management were some of the hottest topics at this year’s Money 20/20. Treasury Prime’s user conference, Activate, held concurrently at the Venetian, gathered expert panelists to discuss fintech partnerships and banking as a service (BaaS) and how banks in this space can successfully navigate regulatory exams. 

Kimberly Monty-Holzel, partner at law firm Goodwin Procter, moderated a panel on  “BaaS and Regulatory Exams for Banks” with Senior Vice President of Bangor Savings Bank, Ryan Dumond; Executive Vice President and COO of BankProv Joe Mancini; and Director of BaaS at Grasshopper Bank, Lauren McCollom.

Preparing for bank regulatory exams top insights

The panelists shed light on invaluable strategies and best practices to effectively prepare for bank regulatory exams. 

  • McCollom shared details on how Grasshopper Bank incorporated banking as a service into their internal audit process. Their proactive approach ensures that everyone within the organization is well-versed in the intricacies of their BaaS contracts, respective roles, and the bank's risk management protocols. Consequently, when regulators do arrive, it transforms into a productive "conversation" due to the team's comprehensive understanding.
  • Mancini emphasized BankProv’s early engagement with experts and regulators as a cornerstone of their successful approach. By fostering collaboration with regulators and meticulously crafting a clear strategy, coupled with robust documentation and governance structures, they have navigated regulatory exams with confidence and competence.
  • Dumond shared Bangor Savings Bank’s experience of seamlessly integrating BaaS into the bank's core policies and procedures. This strategic alignment ensures that every stakeholder involved in banking as a service comprehends their roles and responsibilities, including those of the fintech partners. Such comprehensive clarity equips them to readily address any queries or concerns raised by regulators.

Watch the full panel video to hear detailed conversations on collaboration among banks to create standardized processes and the need for ongoing communication with partners and regulators. Here are a few highlights:

To watch the full panel on demand:

Want to see what happened at other Activate panels? Watch more video highlights.

Wondering how embedded banking could help your bank? Contact Treasury Prime — we have established fintech and embedded finance clients and extensive compliance experience. Read more about our $40 million Series C Funding and why Tearsheet named us the Best Banking as a Service company two years in a row. Talk to the best embedded finance team in the industry.

Related digital banking solutions content:

Future of Banking: Grasshopper Bank

How Banks Can Grow Low-Cost Deposits with Embedded Finance

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