What will BaaS look like in a year?
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Klaros Group is an advisory firm and investment business focusing on innovation, financial services, and regulation. It specializes in helping clients navigate regulatory frameworks related to financial services and drafting strategies within those frameworks to scale businesses compliantly. Founded in 2019, Klaros’s leadership includes former regulators as well as former executive officers with expertise leading banks and fintechs.
Onsite at Fintech Meetup, The FR met with Michele Alt, Co-Founder and Managing Director of Klaros Group, and a former regulator at the Office of the Comptroller of the Currency. Alt outlines:
How Klaros Group advises clients on bank entry for fintechs, and builds risk and compliance management systems helping banks and fintechs work together;
Her thoughts on recent BaaS enforcement actions, including the role of board governance in compliance, the onus of compliance on banks, and the requirement of due diligence related to third-party partners;
How small banks have reacted to growing compliance requirements;
Why she anticipates some small banks will exist the BaaS space due to regulatory developments;
How a compliance-first BaaS solution will become a competitive advantage over the coming year; and
How a potential change in presidents could affect BaaS regulation.
