Banking as a service, community banks, and fintech partnerships are changing how small businesses access financial products. Tedd Huff, CEO of fintech advisory firm Voalyre and founder of Fintech Confidential, along with Stephen Bishop of amBaaSsador and Fintech Confidential, Confidential Informant, sits down with Lindsay Borgeson, President of Partner Banking at Core Bank, to unpack how a community bank in Omaha, Nebraska built a full BaaS platform from scratch without a top-five bank playbook to follow.

The BaaS space has had its share of high-profile failures. Consent orders, compliance breakdowns, and program manager implosions have made headlines for all the wrong reasons. Core Bank took a different approach. They spent time reading every consent order before writing a single line of code. They went to their regulators, both the FDIC and the state, before building anything. They presented their strategic plan, invited regulators back multiple times outside of formal exams, and built a reputation for transparency before they ever onboarded a single fintech client.

"We are not the biggest name in BaaS," Lindsay admits. "Yet, we certainly aim to be a well-known, respected name, but for the right reasons."

That mindset shaped everything about how CoreX, their BaaS brand, was built. They did not try to bolt new capabilities onto an existing tech stack with bubblegum and duct tape. When their initial technology partner did not work out, they stopped, went back to the board, and interviewed over ten vendors before selecting Core Bank as their Side core and Oscilar for transaction monitoring. They later added Cobalt Labs for AI-driven compliance workflows. Each decision was made with long-term strategic alignment in mind, not speed to market.

The compliance model at CoreX offers two paths. Fintechs can choose managed compliance, where the bank handles transaction monitoring, KYB, and KYC. Or they can run customized compliance if they have the internal muscle to own those functions themselves. Either way, the expectation is the same: compliance is not a phase, it is a constant. Lindsay puts it simply: "Compliance first. I should probably consider removing it because it's compliance always."

What makes CoreX different from other sponsor banks is the focus on who they want to serve. Their ideal customer profile centers on fintechs that support small businesses, particularly vertical SaaS platforms in industries Core Bank already understands. Construction, real estate, property management, unions, aviation, medical, and hospitality are all sectors where the bank already has deep expertise on the traditional side of the house. That knowledge transfers directly into how they evaluate fintech partnerships.

The "dinner test" came up more than once. If you would not want to sit down for a meal with a potential partner, you should not get into a contract with them. When things go wrong, and they will, the quality of the relationship determines whether both sides can work through it or walk away bitter.

For fintechs considering a community bank partnership, the advice is direct. Know what matters to you before you start talking to banks. Do not compromise on compliance or risk management just because someone promises speed or a lower price. And if a bank says they can have you live in three months and profitable in twelve, something is off. Building this correctly takes time.

For community banks thinking about entering BaaS, the message is just as clear. Do not dabble. This is not a side-of-desk project. It requires dedicated people, a separate tech stack, a documented risk appetite, and full alignment from the board down. If your executive team is not excited about it, you will not have the patience to do it right.

"It's not for the faint of heart," Lindsay says. "But it is really a great avenue for community banks to thrive."

Core Bank is now expanding into embedded lending, aiming to become a full-service partner for fintechs focused on serving the SMB market. They are hiring, growing their team, and preparing for what comes next in a regulatory environment that continues to shift.

The episode covers how to build a BaaS program that lasts, how to evaluate tech stack partners, how to structure compliance models, and what separates the banks that survive from the ones that make headlines for the wrong reasons. If you are a fintech founder looking for a sponsor bank, or a community bank executive weighing whether to enter this space, this conversation offers a grounded, practical look at what it actually takes.

Key Highlights

Silicon Prairie Is Real

Omaha, Nebraska has earned the nickname Silicon Prairie for a reason. Community banks in the Midwest are building serious fintech infrastructure without the spotlight of coastal tech hubs. The talent is there, the regulatory relationships are strong, and the results speak for themselves.

Bank Within A Bank

Building a BaaS platform means constructing an entirely separate operation inside your existing institution. Different people, different tech stack, different risk frameworks, different regulatory considerations. Most banks underestimate this scope until they are already in it.

BaaS In A Box Fails

Anyone promising to have you up and running in three months is selling a shortcut that will cost you later. If you are profitable in twelve months, something was built wrong. Speed to market is not the same as sustainability.

Read Every Consent Order

Before writing any code or signing any contracts, study what went wrong at other banks. Build a gap analysis. Make sure there is not a single stone you have not turned over. The failures in this space are public record for a reason.

Regulators Want Transparency First

Going to the FDIC and state regulators before building anything changed the entire trajectory. Presenting the strategic plan, inviting them back outside of exams, and maintaining open communication built trust that pays off when questions arise later.

Profitable Fast Means Problems

If someone tells you profitability comes quickly in BaaS, walk away. This is a long game that requires patience, investment, and a board that understands the timeline. Rushing leads to the same mistakes that made headlines.

Your Legacy Vendor Is Lying

When existing technology partners say they can handle BaaS requirements, verify it. Many banks learned the hard way that bubblegum and duct tape on old systems does not scale. Interview ten vendors if you have to.

Skills Do Not Transfer Automatically

The people who excel in traditional community banking may not thrive on the partner bank side. The mindset is different, the pace is different, and the technical demands are different. Evaluate talent honestly before assuming they can make the shift.

Know Your Why Before Starting

Core Bank got into BaaS to grow deposits. That clarity shaped every decision about which fintechs to partner with, which verticals to serve, and which opportunities to decline. Without a clear why, every shiny opportunity looks like the right one.

Fed Skinny Charters Loom Large

The rush to new charters and Fed master accounts is noise that could reshape the entire BaaS model. No one fully understands the impact yet, but smart banks are watching closely and preparing to pivot if the landscape shifts.

Five Key Takeaways

1️⃣ First Call Energy Tells All

If you leave a 30-minute intro call feeling drained, that is your answer. Walk away. The right partnerships should energize both sides from the first conversation.

2️⃣ Stop Overcomplicating BaaS

It is still banking. The same principles apply: risk management, customer experience, and caring about the businesses you serve. Remove the mysticism and treat it like what it is.

3️⃣ Competitors Will Help You

Banks in this space are surprisingly collaborative. They share what works and what does not because everyone benefits when the industry does it correctly. Reach out and learn from them.

4️⃣ Assess Cultural Readiness First

Before committing resources, evaluate whether your organization has the mindset to operate a partner bank. Naysayers and internal resistance will slow you down if leadership is not fully aligned.

5️⃣ Community Banks Offer Leadership Access

Fintechs get direct access to executive decision-makers at community banks. That level of high-touch partnership is harder to find at larger institutions. Do not assume smaller means less capable.

TLDR

Banking as a service does not require billions in assets or a top-five bank playbook. Tedd Huff and Stephen Bishop sit down with Lindsay Borgeson, President of Partner Banking at Core Bank, to break down how a community bank in Nebraska built a full BaaS platform from scratch. The focus is on what actually works: reading every consent order before writing code, going to regulators before building anything, and choosing tech partners based on long-term alignment instead of sales pitches. The compliance model offers two paths, managed or customized, but the expectation stays the same either way. Fintechs serving small businesses through vertical SaaS get priority. The dinner test matters more than most banks admit. Speed and price should never outweigh quality. And if someone promises profitability in twelve months, something is wrong. This is the practical breakdown for fintech founders and community bank executives who want to enter sponsor banking the right