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A new association has launched for banks that offer banking-as-a-service, with Connecticut-based Webster Bank as a founding member.

The new association is part of the Bankers Helping Bankers platform that launched last year to provide community banks with information about bank technology and financial technology companies.

Known as the BHB Banking-as-a-Service Association, the group looks to address the unique needs of BaaS sponsor banks, Webster Bank said in a statement, including by coordinating legislative and regulatory advocacy that will encourage the responsible delivery of BaaS.

BaaS lets companies without bank charters integrate their products and services using a bank’s systems.

Webster Bank said its BaaS team works with fintech and other non-financial institutions to provide financial services to the partner’s customers. The companies are then able to leverage Webster’s charter and capabilities, including account management, debit and credit card issuance, and payment and lending services, the statement said.

“Webster is committed to working with like-minded peers to drive thought leadership and innovation to help shape emerging financial services offerings,” Chris Rigoni, managing director for Webster BaaS, said in the statement. “We see tremendous opportunity to continue to grow our BaaS business, and we look forward to working with the association on the development of best practices to provide the excellent experiences for consumers and businesses alike.”

Other goals of the BaaS Association, according to the statement, include:

• Promoting best practices and standards for the delivery of BaaS products to non-banks.
• Building a community of like-minded bankers and other industry participants to share experiences, insights and learnings.
• Connecting federally insured financial institutions to the technology partners who will help them facilitate a successful BaaS program.

“Banking-as-a-Service is seeing a tremendous increase in bank participants fueled by rapid expansion in fintech funding and a constant supply of new startups,” the statement said.

The statement added that BaaS requires unique technology, regulatory and compliance expertise, and operational capabilities.

“Bankers delivering BaaS are leaders in profitability and innovation,” Tanner Mayo, a co-founder of Bankers Helping Bankers, said in the statement. “It is essential that banks getting into this space do so in a safe, sound, and regulatory compliant way. This association is intended to help them embrace the opportunities of BaaS, while proactively identifying and mitigating risks.”