2024 has been a challenging year for banking-as-a-service (BaaS). The collapse of Synapse served as a prime example of what can happen when banks do not adequately assess the risk they take on from outside fintech partners.

Tuesday began like any other late summer workday. I dropped my daughter off at school and arrived a little late to my office at Bank of America Securities in midtown NYC about 8:30. From our perch on the 48th floor of 9 West 57th, we had a sweeping view of Central Park on one side of the building and a clear view of the twin towers about 4 miles to the south.

Incredibly, some of the world's largest lending institutions are being called on to halt new financing for livestock production.

As a report from the International Maritime Bureau (IMB), which is part of the International Chamber of Commerce’s (ICC) commercial crime division, reveals, a new trade finance threat is emerging to shake the high seas — with logistics providers and exporters increasingly joining forces to manipulate shipping documents and swindle banks.

Basel endgame is elusive and uncertain.

As banking continues its digital transformation, partnerships between traditional banks and BaaS providers will likely become even more prevalent. The key to success in this new landscape lies in striking the right balance between innovation and risk management.

The Banking-as-a-Service (BaaS) model is under pressure right now. Synapse declared bankruptcy, while Evolve Bank and Trust was issued a cease-and-desist order, which in part requires the company to get approval from the Federal Reserve to set up any new FinTech partnerships. Ingo Payments Chief Revenue Officer Lydia Inboden told PYMNTS in an interview that the BaaS industry might be going through a period of upheaval — but there’s long-lived staying power.