- Source: fdic.gov
FinTech companies and traditional banks both face unique challenges as they seek to collaborate in bringing new and innovative products to consumers in a constantly changing regulatory landscape. Now more than ever, they need to have risk and compliance operations in place to satisfy their partners, investors, and state/federal regulatory agencies. Treliant has a history of working with traditional banks and FinTech clients and since we understand this industry, we can tailor risk-based compliance programs to meet the business needs of these innovative companies and their bank partners.
On February 24, 2020, the Federal Deposit Insurance Corporation’s technology lab (“FDiTech”) released a guide to help financial technology companies (and other third parties) partner with banks. Conducting Business with Banks: A Guide for FinTechs and Third Parties is designed to help FinTech companies understand the environment in which banks operate and navigate the requirements unique to banking.
The guide outlines:
- The key risk assessment and due diligence considerations a bank typically uses when evaluating a prospective third-party partner;
- The steps a FinTech company should take if it wants to partner with a bank; and
- The types of materials and terms a bank is likely to request during the due diligence process.