In the banking-as-a-service (BaaS) middleware sector, the concept of “going direct” is evolving amid a landscape of regulatory concerns and shifting business models. While definitions vary, there’s a consensus that financial institutions require greater oversight of their partnerships. Providers like Synctera, Treasury Prime, and Unit are adjusting their approaches, with some moving away from tri-party agreements to facilitate more direct communication between banks and fintechs. This shift reflects a broader trend of banks seeking greater control and visibility over their fintech relationships, driven by regulatory pressures and changing economics. Meanwhile, new entrants like Braid and Infinant offer alternative solutions, emphasizing the importance of giving banks full control over technology and relationships. As the industry adapts, providers are reevaluating their strategies and business models to meet the evolving demands of the market.
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