Orchestration, Control, Observability: A New Framework for Sponsor Banking

The BaaS industry's central challenge has evolved from quickly launching new FinTech and embedded finance programs, to focusing on how banks should manage the compliance and operational risks of increasingly distributed operating models.

Now, banks face a further shift: designing effective controls is no longer enough, they must also continuously prove that those controls are actually working.

This evolution creates a framework for how banking leaders should think about modern sponsor banking architecture, which can be broken down into three key capabilities:

• Orchestration enables banks and FinTechs to launch programs efficiently
• Control enables banks to govern risk across customers, partners, payments, and operations
• Observability enables banks to continuously monitor and demonstrate that those controls remain effective over time 

Learn more about BaaS architecture for banks in Synctera and Alloy Labs' whitepaper: "Orchestration, Observability, Control: A New Framework for Sponsor Banking".