BaaS Compliance
Banking as a Service Compliance Trends 2023: Marketing Compliance
Navigate marketing compliance in the BaaS ecosystem
Published
Jan 11, 2023
Reading Time
11 min
Author
AskDegree Team
Banking as a Service (BaaS) is a fast-growing financial services trend that is rapidly changing the way financial products are delivered. This series explores the compliance trends we are seeing in the BaaS ecosystem and tips on how banks and fintechs can adapt their compliance programs to successfully manage evolving regulatory expectations.
What is Banking as a Service?
BaaS allows banks, fintechs, and other financial institutions to create an ecosystem of shared processes, responsibilities, and oversight to meet customer needs efficiently.
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Regulatory Foundation
The marketing compliance framework is built from regulations and enforcement agency examination guidelines that providers must follow when marketing products.
- •UDAAP (Unfair, Deceptive, or Abusive Acts or Practices)
- •TILA (Truth in Lending Act)
- •ECOA (Equal Credit Opportunity Act)
- •FCRA (Fair Credit Reporting Act)
- •CAN-SPAM Act for electronic marketing
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Critical Point
In a BaaS model, both the bank and the fintech share responsibility for marketing compliance. Clear contractual agreements defining compliance responsibilities are essential.
Conclusion
Marketing compliance in the BaaS ecosystem requires a collaborative approach between all parties. By implementing robust compliance frameworks and maintaining clear communication, you can navigate the regulatory landscape successfully.