The advent of services offered through financing programs and technologies often developed by non-depositories, such as point of sales technologies to finance the purchase of retail goods and consumer services, has created niche markets for banks to partner in support of these programs, often as a source of reliable funding. Given the relentless competition from various non-depositories in traditional bank offerings, these services can help banks increase revenue. However, some of the programs bring high regulatory and reputational risk for banks if not properly vetted, monitored and controlled. Our attorneys have reviewed these banking as a service ("BaaS") programs to help the participants understand such potential risks before moving forward.

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