The Risks and Rewards of Providing Banking as a Service

AS A PROFESSOR of Finance at Temple University’s Fox School of Business and chair of the Office of Finance at the Federal Home Loan Bank System, Jon Scott’s research focuses on community bank funding and technology strategies. Recently he has been studying Banking as a Service (BaaS) arrangements. In a recent interview, Scott discussed why offering BaaS is attractive to some community banks, what fintechs are looking for in potential bank partners, the role of connector…