How Treasury Prime Got BaaS Right

Treasury Prime's success stems from a clear vision and solid foundation. Our beginnings were running a large bank's fintech group, which showed the pitfalls that can ensnare tech companies and banks. We designed Treasury Prime from the start to sidestep these issues by implementing the following strategies:

1. Program Management and Compliance: The bank oversees program management, not us. This safeguards the bank's charter and ensures regulatory compliance. By letting the bank manage these critical areas, we avoid conflicts and maintain regulatory integrity.
2. Contracts: The contract is between the bank and the tech company, clearly showing regulators that the bank is in control. This arrangement ensures that we do not run the relationship, which helps to avoid potential conflicts and maintains the bank's authority.
3. Bank Network: A single bank cannot support all fintech needs. Our extensive network of banks ensures broad support and scalability for growing fintechs. This network is crucial for providing the necessary infrastructure to handle multiple fintech clients and their varied requirements.
4. Realtime Core Access: We integrate directly with bank cores for realtime reconciliation and settlement, unlike competitors who rely on end-of-day files. This direct integration is vital for maintaining accurate and up-to-date financial records, reducing errors, and increasing efficiency.
5. Separation of Funds: Each fintech has distinct accounts for deposits and settlements, simplifying reconciliation and ensuring accuracy. This separation prevents the common problem of co-mingled accounts, which can lead to reconciliation nightmares and financial inaccuracies.

Most people think of Banking-as-a-Service as program management. After all, "Service" is in the name. But Treasury Prime is fundamentally a software company that allows banks to run a BaaS program since banks are the only ones that can. By focusing on our technology and maintaining clear boundaries between us and the banks, we have created a robust and reliable system that stands out in the fintech industry.

Recent negative news about embedded banking and BaaS seems to question the entire ecosystem. Treasury Prime's unique approach in leveraging technology to create greater controls for banks makes us the clear winner in our space.