Fintech Insights - Goldman Sachs Fintech Unit Issues Raise Questions for the Future of BaaS

September 2023
Fintech & Payments

The Financial Times has reported that Goldman Sachs is facing investigations by regulators over its Platform Solutions business. This business unit offers BaaS solutions to fintech clients. The investigations centre around claims that Goldman Sachs is exercising insufficient due diligence and monitoring when accepting high-risk, non-bank clients, which were allegedly raised by the US Federal Reserve.

Goldman Sachs’ Platform Solutions business has reportedly stopped onboarding riskier fintech clients in the wake of this, and it comes at the same time as claims that some employees at Goldman Sachs have warned internally over a tendency to minimise risks.

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