Coastal Community Bank Joins New BaaS Association as Founding Member
On June 9, 2022, Coastal Community Bank announced it had joined the Bankers Helping Bankers (BHB) Banking-as-a-Service Association as a founding member. The BHB BaaS Association was newly launched to support sponsor banks engaged in BaaS through legislative advocacy, sharing of experiences, and connecting banks with fintech partners. Coastal Community Bank's CCBX division provides BaaS services to broker-dealers and digital financial service partners, enabling them to offer banking services to diverse customer segments.
CEO Eric Sprink emphasized the importance of developing best practices for consumer and business experiences in the BaaS space. The association focuses on promoting responsible delivery of BaaS by federally insured institutions, a growing concern amid rapid fintech-bank partnership expansion. The membership signals Coastal's commitment to shaping industry standards as regulatory scrutiny of BaaS relationships intensifies.
The initiative provides a collaborative forum for sponsor banks to address common challenges in compliance, risk management, and partner oversight.
- Growing industry recognition that BaaS sponsor banks need collective advocacy and shared standards as regulatory scrutiny increases
- Formation of BaaS trade associations signals the maturation of the sponsor bank ecosystem and may influence future regulatory frameworks