What factors influence whether BaaS companies offer program management, and what effect does this have on their competitiveness?

Guest: The rationale for that would be there ends up being quite a bit of day to day operational management of a program when you take on that program manager role. The other aspect of that is whether they take on the liability because the program manager takes on the liability of that. 

And so if there's any fraud or any losses then the program manager's the one who loses that. If there's spend fraud on the cards then any losses go directly to the program manager. And so whoever's taking that role of program manager then really ends up losing out on those potential revenues.

Now, if a BaaS player is choosing to be the program manager, then that typically means they receive the interchange. They receive the interchange, and then they share that revenue with the FinTech, after all their expenses are paid, and losses would be considered one of those expenses. 

And so they have to decide whether they want to take on that risk as the program manager and then set that. That's the main component of program management. The second component is really that day-to-day operational, whether they want to have the staff to actually support that and be the program manager.