Synctera Publishes 'Getting BaaS Right' Compliance Guide for Sponsor Banks

On April 17, 2024, BaaS middleware provider Synctera published a comprehensive guide titled 'Getting BaaS Right,' laying out six principles for building compliant sponsor bank and nonbank partnerships. The guide was released in direct response to the rising number of regulatory consent orders issued to BaaS sponsor banks, including recent FDIC actions against Piermont Bank and Sutton Bank. Synctera's framework addresses key areas including third-party risk management, BSA/AML compliance, consumer protection, and operational resilience.

The guide positions Synctera as a thought leader in the BaaS compliance space and underscores the company's middleware platform as a solution for managing regulatory complexity. By codifying best practices, the publication aims to help both banks entering the BaaS space and fintechs seeking compliant banking partnerships navigate an increasingly demanding regulatory environment. The release reflects a broader industry shift toward compliance-first approaches in embedded finance, moving away from the growth-at-all-costs mentality that characterized earlier BaaS expansion.