Media Coverage
Source: S&P Global
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
02.28.24
While consumer fintech in which banks provide deposit accounts, loans and payment products to users of neobanks, trading platforms or digital wallets, has long been the pillar of banking as a service (BaaS), recent reports suggest that those margins are thinning due to compliance requirements. As a result, some banks are shifting to business-to-business (B2B) fintechs to conduct fewer but larger transactions with commercial organizations.
“Managing a smaller number of larger relationships is easier from a compliance perspective,” Regulatory senior counsel Brian Montgomery told S&P Global. “It’s easier for banks to figure out how to think about that and be prepared to deal with them.”
Click here to read the full article.