The news: Banks with certain fintech partnerships have faced a regulatory reckoning this past year, but their challenges are far from over.

Given the losses experienced by the average sponsor bank in a banking-as-a-service (BaaS partnership), financial institutions (FIs) must reevaluate the way their partnerships operate to minimize risk and navigate growing tensions with lawmakers.

BaaS best practices: Beyond prioritizing compliance, banks can minimize risks when forming these partnerships by: