This report explores Funding-as-a-Service (FaaS) as an alternative strategy for managing liquidity in consumer lending. With rising interest rates and increased competition from digital banks, traditional funding costs have become burdensome. FaaS offers scalable, flexible access to external capital, allowing lenders to optimize balance sheet management. Enabled by real-time loan-level syndication technologies, FaaS expands funding options for community banks and credit unions. It complements traditional asset/liability management strategies and supports growth by improving access to capital and mitigating funding-related risks.

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