Objectives On completion of this tutorial, you will be able to:

• Recognize Banking-as-a-Service (BaaS) and explain how it works
• Identify the risks associated with Baas and the regulatory considerations
• Compare the characteristics of BaaS against those of embedded finance
• Recognize Banking-as-a-Platform (BaaP), explain how it works, and list the benefits for the different participants

Tutorial Overview The provision of financial services has traditionally been the exclusive domain of banks. However, the arrival of open banking and the general availability of customer data opened the door for new business models. Banks saddled with cumbersome legacy systems but possessing years of banking experience are collaborating with FinTech companies that lack regulatory approval but possess the innovative financial technology to offer products and services that customers desire. These collaborations take the form of Banking-as-a-Service (BaaS) or Banking-as-a-Platform (BaaP). This tutorial delineates the characteristics of BaaS and BaaP and the relationship of both with embedded finance, as well as the roles and responsibilities of all parties in the value chain. It identifies the many benefits of these models and the regulatory and compliance challenges they create. Prerequisite Knowledge Open Banking & Open Finance Tutorial Level: Intermediate Tutorial Duration: 50 minutes