Top Considerations for Banks When Partnering with Fintechs

Banks looking to gain access to new technological innovations for loan or deposit generation or for the ability to offer products and services to a wider customer base continue to rely on fintech organizations. Fintechs offer a broad range of digital products for players in the banking industry and relationships between fintechs and banks continue to grow in popularity.

A few key considerations to keep in mind when evaluating a banking/fintech relationship include:

1. What is the structure of the relationship?

2. Who is responsible for AML/BSA and other regulatory responsibilities?

3. What is the fintech’s track record and history?

Only after a bank is satisfied with its review should it proceed to negotiate a definitive contract with a fintech. That contract should thoroughly lay out the agreed-upon structure and detail the legal requirements and all operational and technical considerations and responsibilities going forward.

Read the full article here.