Working with FinTech partners

Determine your FinTechs goals and risk appetite

Synctera will work with the Sponsor Bank to understand its key goals as it pertains to its BaaS program and FinTech partnerships. This will support Synctera in understanding the Sponsor Bank’s operational and risk capacity for FinTech partnerships. Synctera will meet with the Sponsor Bank to discuss the following topics:

• General strategic goals - Goals surrounding income, deposit growth, and industry / product exposure
• Financial capacity - Goals and limitations around leverage ratios, balance sheet growth, and any other capital or liquidity requirements
• Operational capacity - Ability and capacity to onboard FinTechs in a given month, quarter, or year
• Product / Industry - Targets and constraints surrounding FinTech products and industries e.g. crypto, cannabis, deposit products, international remittance, lending
• Customer base - Targets and constraints surrounding FinTech customer base such as US vs. non-US, B2B vs. B2C, acceptance of alternatives to Social Security Number
• Regulatory - Any regulatory constraints or issues that we should be aware of

The Sponsor Bank may provide any BaaS strategic plans or risk appetite documents that can help Synctera understand the bank’s goals or help provide feedback on.

Onboarding FinTechs

Once the Sponsor Bank onboarding is complete, it will be regularly onboarding FinTechs. When a new FinTech is onboarded to the Sponsor Bank, Synctera will arrange the following steps:

1. The FinTech will be introduced to the Sponsor Bank, and will demo the Application it has built.
2. The FinTech will open accounts or Cost Centers with the Sponsor Bank:
   1. FBO DEPOSIT-BAAS
   2. BAAS-ACH CLEARING - if using ACH services
   3. BAAS-CARD CLEARING - if using debit cards
   4. Reserve
   5. Fraud Loss
   6. Operational Account
   7. Profit & Loss (P&L)

We recommend that all FinTechs are under one FBO account and each FinTechs has a separate Cost Center.

Launching FinTechs

Once a FinTech is ready to launch, FinTechs will demo the product to the Sponsor Bank and provide a copy of the policies, procedures, and disclosures before going live. This allows you to see the final product that will be going to market!