Breaking Banks

In This Episode

The FDIC recently issued a proposed rule change on how brokered deposits are treated. This isn't so much a proposed change but a rollback. A roll way back. Way back to 1989 when the original brokered deposit rule was written. As Jason Mikula points out, that's when Taylor Swift was born. Jason M, Alex Johnson, Kiah Haslett and Alex Barrage of Troutman Pepper have some hot takes with Jason Henrichs on how the business of banking has changed through the eras and the implications for the future. Also, the views expressed are those of the individuals and not their respective employers - the lawyers made us add that.

Read the entire transcript here.

Podcast Content:

Chapter 1: 00:00 - Welcome and Introduction

Brett King and Jason Henricks introduce the episode, featuring a panel discussion on the FDIC's proposed changes to broker deposit rules.

Chapter 2: 03:20 - Rolling Back to 1989: What’s Changing?

The panel explains the proposed rule changes, comparing them to the original 1989 statute and analyzing their relevance in today’s banking landscape.

Chapter 3: 09:50 - The Problem with Blanket Rules

A debate over whether the FDIC’s rollback is a necessary step or an overreaction, with a focus on the lack of modern data to support the changes.

Chapter 4: 17:35 - Are All Deposits Becoming Hot Money?

Discussing the impact of technology, consumer behavior, and open banking on the stickiness of deposits, making the case for nuanced regulation.

Chapter 5: 27:10 - Self-Brokered Deposits: A New Paradigm

Exploring the idea that modern consumers act as their own deposit brokers, reshaping how banks should approach liquidity and risk.

Chapter 6: 36:45 - Liquidity, Portability, and the Future of Deposits

Analyzing how innovations like FedNow and open banking could transform deposit flows, amplifying risks in ways the proposed rule doesn't address.

Chapter 7: 46:20 - The Regulatory Disconnect

Panelists highlight how regulators’ legacy frameworks may fail to capture emerging risks, from fintech partnerships to instantaneous deposit movement.

Chapter 8: 55:30 - Unintended Consequences of the Rule

The potential fallout of the rule for fintech partnerships, community banks, and consumer access to innovative banking solutions.

Chapter 9: 01:05:00 - Closing Thoughts and Calls to Action

The episode wraps up with reflections on the importance of public comments and industry collaboration to guide smarter regulatory decisions.

Related Content:

Episode 488: Deposits: Hot or Not

Episode 562: Hot Takes: Regulatory Headwinds for BaaS

Huawei Does Gen-Fi

Episode 560: Killing It: Ohad Samet on Reimagining Debt Collection

Bank-Fintech Partnerships, Open Banking and AI...oh my!

https://youtu.be/yW6m7yCif-A

In This Episode

Opening doors to high-potential fintech startups that share a mission to connect and power an inclusive, digital economy that benefits everyone, everywhere by making transactions safe, simple, smart and accessible has been a goal of Mastercard's with the founding of Start Path in 2014. Since its inception the program has helped over 430 startups in 57 countries.

With partnership in its DNA, Start Path is helping define how the company innovates for the future and creates meaningful, sustainable impact for society. Working with players large and small, Mastercard is helping fintechs push the boundaries of what's possible, to foster innovation, expand access and ensure trust. This symbiotic relationship helps the partners innovate at scale and, together, change the game for the wider commerce ecosystem.

In this episode, Brett King connects with Sabrina Tharani, SVP, Global Fintech Programs at Mastercard and Jordan Wright, Co-Founder & CEO of Atomic Financial, a leader in payroll and merchant connectivity solutions, and a member of the Mastercard Start Path Open Banking program. Listen as they discuss Start Path and how their commercial partnership is enabling consumers to automatically switch their direct deposits and update recurring bill payments. A secure, seamless online banking experience through Mastercard Open Banking, solutions delivered in partnership with Atomic, ultimately helping drive account primacy for financial institutions.

As fintechs look to build, launch and grow their business, Mastercard is helping drive smarter decisions for better outcomes across the payments ecosystem.

Interested in joining Mastercard Start Path? Click here to learn more about the programs and apply online.

Read the entire transcript here.

Podcast Content:

Chapter 1: 00:00 - Welcome and Introduction

Brett King introduces this MasterCard-supported episode, highlighting fintech innovation and partnerships reshaping financial services.

Chapter 2: 03:15 - The Global Pulse of Fintech Innovation

MasterCard's Sabrina Tarani discusses emerging fintech trends, the role of AI, data technology, and how consumer expectations are driving innovation.

Chapter 3: 08:30 - Meet Atomic Financial

Jordan Wright, CEO of Atomic Financial, shares insights on the company's mission to transform deposit switching, payments, and financial access.

Chapter 4: 15:40 - AI Agents and Radical Personalization

The panel explores the role of AI in finance, highlighting wallet-based approaches, smart agents, and real-world applications for personalized banking.

Chapter 5: 22:20 - Inside MasterCard's StartPath Program

Sabrina details the StartPath program’s mission, its global impact, and how it supports fintechs like Atomic to scale through partnerships and innovation.

Chapter 6: 30:10 - The Case for Bank-Fintech Collaboration

Why banks need fintech partnerships to stay competitive, including insights into how StartPath accelerates collaboration with speed and agility.

Chapter 7: 38:00 - Challenges and Opportunities in Fintech Partnerships

A candid discussion on overcoming hurdles in bank-fintech collaborations and the importance of aligning incentives for success.

Chapter 8: 45:30 - Scaling Success: Lessons from StartPath

Celebrating the achievements of StartPath, its impact on over 450 fintechs in 57 countries, and its contributions to global financial innovation.

Chapter 9: 52:00 - The Future of Finance

Closing reflections on the role of AI, open banking, and subscription management in shaping the next generation of financial services.

Chapter 10: 57:15 - Outro and Closing Thoughts

Final takeaways on fintech’s transformative potential, with resources to explore Atomic Financial and MasterCard’s StartPath program further.

Related Content:

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Fintech Visionaries and Revolutionaries & What's Up With Bitcoin?

Bank-Fintech Partnerships, Open Banking and AI...oh my!

Episode 561: Demystifying Fintech: Insights on Banking's Future

Huawei Does Gen-Fi

https://youtu.be/hw7GjWWjtwI

In This Episode

Consent orders are dropping with increasing frequency. Historically consent orders were viewed as failing grades. It's no surprise that bankers are a breed that don’t respond well to failing grades, it is the credit mentality around loss avoidance that leads to an overly developed risk-mitigation culture. Doing new things, by definition, requires taking on risk at some level.

In this episode, Jason Henrichs is joined by guests Gilles Gade, Founder & CEO, Cross River Bank, Phil Goldfeder, CEO, American Fintech Council, Clayton Mitchell, Managing Principal, Fintech, and Mandi Simpson, Partner, Accounting Advisory & Finance Transformation Leader at Crowe as they dive into the critical topic of organizational resilience for banks in the wake of receiving a regulatory consent order. Together they explore how financial institutions can not only comply with regulatory requirements but also use this challenge as an opportunity to strengthen their operations and culture.

Read the entire transcript here.

Podcast Content:

Chapter 1: 00:00 - Introduction: Setting the Stage for Resilience

The episode opens with an overview of resilience in the financial world. Hosts introduce key topics, such as navigating regulatory pressures, innovation amid challenges, and how resilience shapes the future of financial services.

Chapter 2: 05:30 - Building Technology to Challenge the Status Quo

Gils Gade from CrossRiver Bank explains how outdated technology in banking inspired his vision for a tech-forward bank. The discussion dives into how CrossRiver built innovative solutions to replace legacy systems, ultimately serving fintech ecosystems better.

Chapter 3: 15:45 - Turning Challenges into Stepping Stones

The conversation explores CrossRiver’s encounters with regulatory consent orders and how they used these challenges as opportunities to strengthen compliance and innovate further. Gade emphasizes a philosophy of viewing stumbling blocks as stepping stones.

Chapter 4: 28:20 - Minimal Maturity Models for Risk and Compliance

Crow’s Mandy Simpson and Clayton Mitchell discuss strategies for balancing growth and risk in banking. They highlight the importance of incremental risk management and dialogue with regulators to build resilience.

Chapter 5: 38:15 - Resilience Through Consumer-Centric Design

The episode underscores how keeping customers at the center of decision-making helps banks build trust and resilience. CrossRiver’s efforts to address customer pain points through innovative tech and services are highlighted as a model.

Chapter 6: 47:10 - Collaboration: Banks, Fintechs, and Regulators

Phil Goldfeder from the American FinTech Council shares insights on collaboration between banks, fintechs, and regulators. The focus shifts to aligning regulatory practices with the fast-paced innovation demanded by customers.

Chapter 7: 57:45 - Overcoming Regulatory PTSD

A candid discussion on how consent orders can lead to "regulatory PTSD" within organizations. The panel explores strategies for fostering innovation while maintaining compliance.

Chapter 8: 1:08:30 - Preparing for the Future of Banking

The panel reflects on how banks can leverage their experiences to remain competitive and resilient. They emphasize the importance of innovation, risk management, and customer focus as the pillars of a sustainable banking model.

Chapter 9: 1:19:00 - Closing Thoughts: Resilience as a Journey

The episode concludes with a discussion on how resilience is not just about weathering challenges but thriving through them. The hosts summarize key takeaways and look ahead to the future of resilient banking.

Related Content:

Episode 562: Hot Takes: Regulatory Headwinds for BaaS

Episode 471: Can You Hear Me Now? Regulators Speak Up

Episode 560: Killing It: Ohad Samet on Reimagining Debt Collection

Bank-Fintech Partnerships, Open Banking and AI...oh my!

Huawei Does Gen-Fi

Spoiler Alert: Lots of great quotes in this episode!

https://youtu.be/YJRPtez0pU0

In This Episode

Digital banking is reshaping market share. All the fastest growing banks these days are fintechs.  After a three year battle, fintech challenger Revolut has provisionally secured a UK Banking License. With this, Revolut can now represent themselves as a bank, having the rights and obligations of a chartered financial institution in the UK. Revolut already had a license in the EU but the UK license could help with entry into the US. With 45M customers, revenue over $2B and profitable, they are making a mark for themselves. Listen as hosts Brett King and JP Nicols share their take on the news and implications for the industry.

Then, it's Tyme....TymeBank, South Africa's (and the African continent's) most successful challenger bank aimed at the lower income market. Listen as Co-Founder, Coen Jonker, speaks with Brett to share Tyme's origin story and progress. Tyme is challenging the notion of how neos might work in this space. It began with BaaS and several years later, 2019, TymeBank launched in South Africa (SA). Launching during CoVid taught Tyme (Take Your Money Everywhere) to build an anti-fragile business.One of three banks since 2000 to have been granted a SA banking license, TymeBank uses a phygital operating model to work towards it's goal of financial inclusion and democratizing access to banking. In 2022 they expanded to the Philippines, GoTyme, and now, Vietnam. Via digital kiosks for onboarding in physical retail stores -- you can open an account in 3 - 5 minutes and be issued a debit card -- they are building trust and educating customers, integrating banking into the shopping proposition. TymeBank is in it for the long game.

Read the entire transcript here.

Podcast Content:

Chapter 1: 00:00 - Introduction: Breaking News in Fintech

The hosts introduce the episode with key updates: Revolut's provisional UK banking license and an exploration of TimeBank’s rapid growth.

Chapter 2: 03:15 - Revolut’s UK Banking License: A Game Changer

Revolut’s recent milestone is discussed, highlighting how the license impacts its global expansion strategy and positions it as a competitive force.

Chapter 3: 12:40 - Scaling Success: How Digital Banks are Outpacing Incumbents

An analysis of digital banks like Revolut and NewBank, comparing their customer acquisition strategies, scalability, and profitability to traditional banks.

Chapter 4: 24:30 - SME Banking and the Future of Commercial Services

The hosts discuss how digital banks are entering the SME sector, leveraging data to provide tailored services and disrupting traditional commercial banking.

Chapter 5: 33:45 - TimeBank’s Story: Building Financial Inclusion in Africa

TimeBank’s co-founder, Kuhn Yonker, shares the bank’s origin story, its mission to democratize access to banking, and its impressive growth in South Africa.

Chapter 6: 45:10 - The Hybrid Strategy: Digital Meets Physical

TimeBank’s unique approach of combining digital services with in-store kiosks is examined, showing how this model fosters trust and reduces acquisition costs.

Chapter 7: 55:20 - Expansion into Southeast Asia: TimeBank Goes Global

TimeBank’s entry into the Philippines and Vietnam is discussed, focusing on its strategy to replicate its African success in new, emerging markets.

Chapter 8: 1:05:30 - AI and the Next Frontier for Digital Banks

The role of AI in enhancing productivity, customer service, and personalized banking experiences at TimeBank is explored.

Chapter 9: 1:16:45 - Looking Ahead: What’s Next for Revolut and TimeBank?

The episode concludes with reflections on the future of digital banking, from Revolut’s growth trajectory to TimeBank’s upcoming capital raise and global aspirations.

Related Content:

Fintech Visionaries and Revolutionaries & What's Up With Bitcoin?

UK is "All In" for FinTech

Episode 124: Cross Border Payments: Revolut, Visa & Currencycloud

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Episode 560: Killing It: Ohad Samet on Reimagining Debt Collection

https://youtu.be/9tKswSs2SaY

In This Episode

Another thrilling episode of Breaking Banks' special series Killing It!. Host Jason Henrichs connects with fintech superstar, dare we say fintech Olympian (Paris 2024!), Bill Harris, industry veteran, founder of 10+ tech and fintech companies, author, and current Founder & CEO of Evergreen Money. Together Jason and Bill look back at Bill's career to date, the different companies, the lessons learned and the tough calls made. Among those hard decisions, the need, at times, to avoid prolonging a failing venture and the need to conserve resources. It's a race to the finish where Bill shares details about his latest endeavor.

https://youtu.be/zh-rAm6t_DY

In This Episode

Integration is a team sport these days. There is a need for constant adaptation and innovation, it can be complex and expensive, a lack of standards in the U.S. has introduced a lot of competing standards and solutions challenging business and consumer adoption. Partnerships and tighter focus can be key to bringing down cost to exchange funds and complement the current payments system with $80 Trillion processed on the ACH system in 2023, $55 Trillion of it B2B payments. Listen as Brett King catches up with Dwolla's CEO, David Glaser and CTO, Skyler Nesheim. Dwolla was first featured on Breaking Banks back in 2013, they bring us up to date on the innovative interfaces that Dwolla offers to the US banking system and their ability to work with innovators of all sizes. It's an interesting discussion covering RTP payments, open banking, pay by bank, connections to the ACH Network and RTP Network for institutions of all sizes.

Then Jason Henrichs chats with veteran financial services executive, founder & CEO Sanjib Kalita, about fintech events from Money 20/20 to Fintech Meetup and beyond. From best practices to the need to create the right culture and maximize the value of content and improve ROT (Return on Time), differentiation is important as is contributing to greater knowledge. Are there too many events? It's a master class in events!

Read the entire transcript here.

Podcast Content:

Chapter 1: 00:00 - Introduction: Navigating Innovation in Fintech

The hosts kick off with an overview of the "Innovator's Dilemma" and introduce returning guests from Doala, discussing the evolution of fintech.

Chapter 2: 05:15 - Doala’s Evolution: From Startups to Enterprises

Doala’s CEO and CTO reflect on their journey, highlighting the company's shift from serving small businesses to becoming a payments infrastructure leader.

Chapter 3: 15:30 - Global Real-Time Payments: Lessons from PIX and UPI

A discussion on how countries like Brazil and India are leading real-time payments, compared to the U.S.’s slower adoption and the role of standards.

Chapter 4: 25:40 - Overcoming Legacy Challenges in Banking

Exploring how legacy systems create friction in innovation, and how fintechs like Doala provide solutions to modernize payment ecosystems.

Chapter 5: 35:20 - The Role of AI in Payments and Personalization

The conversation shifts to AI’s potential in payments, including personal assistants managing financial transactions and streamlining banking processes.

Chapter 6: 45:10 - Collaboration in Fintech: Banks, Platforms, and Ecosystems

The panel examines how fintechs, banks, and technology platforms collaborate to create scalable, integrated financial systems.

Chapter 7: 55:30 - Building a Future-Proof Bank in the Cloud

The episode highlights how cloud-native fintechs like Doala have a competitive edge, while legacy banks face significant hurdles in keeping up.

Chapter 8: 1:07:45 - Conferences and ROI: Fintech Events That Matter

The hosts discuss the importance of maximizing return on time at fintech events, sharing strategies to align conference participation with business goals.

Chapter 9: 1:17:20 - Closing Thoughts: Embracing Continuous Innovation

The episode wraps up with reflections on the necessity of constant innovation for survival in fintech and the banking ecosystem.

Related Content:

Episode 427: Reframing the Branch and the Industrialist Dilemma

Episode 565: Return to Normalcy? & Money's Got Soul

Episode 395: Banking on Fast Money

Special Episode - Finovate: Financial Insights & Breaking Banks Anniversary Trailer

Episode 216: Disruption Stories - The Challenges of Integrating Cryptocurrency into Traditional Financial Systems

https://youtu.be/PaD1IcU4NxU

In This Episode

Deposits are the aqua vitae of banking, the water of life.

The very core of the traditional banking business model is gathering deposits at no to low-cost and lending the money back out at higher rates. Bankers used to reference the “3-6-3 Rule”: bring in deposits at 3%, make loans at 6%, and be out on the golf course by 3:00PM.

Money is the primary raw material in the business of banking. The difference between what financial institutions pay for that raw material is subtracted from what they earn from lending it out right at the very top of their income statements. That difference is net interest income, and it is the largest component of earnings for virtually every bank. As much as 95% or more for some.

Expressed as a ratio, the net interest margin or NIM is a key metric in measuring bank performance, and it’s been under considerable pressure lately. The traditional levers have been trying to lower deposit rates and raise loan rates, and hope you don’t lose too much volume. As the business has become more complex, so have the tools and strategies to reduce that pressure.

Today we get into some of the hidden levers that banks are using to add non-rate value, one focus is SBA lending. How new approaches and new technology is expanding the market for banks large and small, and also for fintechs; and how the secondary market is helping to improve liquidity and improve NIM. Joining host JP Nicols in this episode are Steve Tanzer and Joel Updegraff, both Managing Directors at Brean Capital.

Read the entire transcript here.

Podcast Content:

Chapter 1: 00:00 - Introduction: The Lifeblood of Banking

The hosts introduce net interest margin (NIM) as a critical metric for bank performance and set the stage for a discussion on strategies to manage NIM pressures.

Chapter 2: 05:20 - SBA Lending: A Hidden Lever for Profitability

Steve Tanzer from Breen Capital explains the role of Small Business Administration (SBA) loans in enhancing bank liquidity, profitability, and risk management.

Chapter 3: 15:45 - Expanding Beyond Local Markets

The discussion shifts to how banks can diversify geographically and leverage national lending platforms while maintaining strong customer relationships.

Chapter 4: 25:30 - The SBA Secondary Market: Transforming Loan Portfolios

An overview of how the SBA’s secondary market enables banks to sell guaranteed portions of loans, generating fee income and freeing up capital for growth.

Chapter 5: 35:10 - Fintech Partnerships and Efficiency Gains

The panel explores how fintech and "Fintech Lite" solutions are streamlining SBA lending, boosting efficiency, and expanding credit access to underserved markets.

Chapter 6: 45:25 - Innovations Born from the Pandemic

Insights on how SBA modernized processes during COVID-19, including the shift from wet signatures to digital transactions, improving efficiency in loan settlement.

Chapter 7: 55:15 - Lessons from Leaders: Specialization and Technology

The hosts highlight examples like Live Oak Bank, showcasing how specialization in industry verticals and investment in technology yield competitive advantages.

Chapter 8: 1:05:30 - Getting Started with SBA Lending

Practical advice for banks new to SBA lending, including understanding the program’s economics, finding the right partners, and identifying growth opportunities.

Chapter 9: 1:15:40 - Non-Traditional Players in the SBA Space

The role of non-bank lenders and fintech innovations in reshaping the SBA landscape is examined, emphasizing their influence on efficiency and market dynamics.

Chapter 10: 1:25:10 - Closing Thoughts: The Future of NIM and SBA Lending

The episode wraps up with reflections on the evolving role of SBA programs and non-rate strategies in addressing NIM compression challenges.

Related Content:

Episode 340: Good Policy, Good Banking

Episode 560: Killing It: Ohad Samet on Reimagining Debt Collection

Huawei Does Gen-Fi

Episode 559: Hot Take: Brokered Deposits Join the Eras Tour

Bank-Fintech Partnerships, Open Banking and AI...oh my!

https://www.youtube.com/watch?v=DOZCuKPrBcY

In This Episode

This Breaking Banks episode's Killing It guest went from software engineer to investment banker to founder of a community supporting the next generation of fintech founders to adviser then founder of the fintech team at Andreessen Horowitz (A16Z) and now solo venture fund founder in the fintech space investing at the angel, pre-seed and seed stage. Meet Rex Salisbury, founder Cambrian Ventures, backing early-stage companies, as he shares his journey and founder stories -- his path, motivation and the support that ultimately led him to being a solo fund founder after clearly being bitten by the fintech bug. He shares thoughts on putting talents and strengths to good use, creative destruction and how to think about failure to get you where you want and ought to be. In short, he's killing it!

https://youtu.be/v8MC6xGc_lo

In This Episode

Soft landings are a topic of hot conversation these days. The go-go days where you can always raise another round are gone. The ecosystem is littered with companies with little product market fit, less revenue and even less runway. Many of these are looking for a soft spot to land. Unfortunately M&A is hard in the best of times and many fintechs are now looking to banks as a potential exit.

In the first half of today's show, Jason Zaler, partner at Oliver Wyman, joins Jason Henrichs to discuss Oliver Wyman's  new report on bank fintech M&A. In the second half,  Robert Antoniades, General Partner at Information Venture Partners, and Jason H talk about 3 decades of venture cycles and M&A more broadly including strategies for big banks, community banks, fintechs and even VCs.

Read the entire transcript here.

Podcast Content:

Chapter 1: 00:00:00 - Insights into Bank and Fintech Partnerships

Introductory thoughts on fintech struggles and the shifting landscape of bank-fintech partnerships.

Chapter 2: 00:12:45 - Bank-Fintech M&A Challenges and Opportunities

Exploring the difficulties banks face in acquiring fintechs and factors impacting M&A deals.

Chapter 3: 00:24:10 - Case Study: SoFi's Acquisition Strategy

A deep dive into SoFi's significant acquisitions, including Galileo and Technisys.

Chapter 4: 00:37:00 - Key Steps to Successful Integration Post-Acquisition

Outlining the playbook for integrating fintech acquisitions successfully.

Chapter 5: 00:45:15 - Navigating Regulatory Hurdles in M&A

Challenges fintechs and banks face in complying with emerging regulations.

Chapter 6: 01:00:30 - Venture Capital Trends and Market Outlook

Discussion on venture capital cycles, overfunded startups, and future fintech consolidation.

Chapter 7: 01:15:00 - Closing Thoughts on Fintech Consolidation

Predictions on soft landings, hard landings, and where fintechs are headed next.

Related Content:

Bank-Fintech Partnerships, Open Banking and AI...oh my!

Episode 31: Where Does the Money Go? - Corporate Venture Capital - The Challenges of Strategic Investing

Episode 553: The Secret of NIM

Episode 558: Fintech Visionaries Reimagining the Future of Finance: Start Path

Episode 561: Demystifying Fintech: Insights on Banking's Future

https://youtu.be/1e5Vtj3fiEQ

In This Episode

Come for the expert views on how the Synapse bankruptcy has led to regulatory consent orders for three banks (so far), stay to find out what happens when two regulatory lawyers and a self-declared ‘bank nerd’ editor break down the issues and the lessons for the rest of the industry.

Matt Janiga from Trustly, Jesse Silverman from Troutman Pepper, and Kiah Haslett from Bank Director dive deep into what went wrong on the bank side, and what banks need to do to avoid a similar fate. Jesse has ideas for a better regulatory system, and says banks need to think beyond disclosures. Matt says banks need to step up their AML/BSA compliance systems and not try to do too much at once. Kiah gives a little history lesson and goes on a rant about how much of banks’ risk management systems are anything but. Everyone agrees with JP that banks keep stumbling over well-known issues, and that the risks of inaction are too big to ignore.

Read the entire transcript here.

Podcast Content:

Chapter 1: 00:00:00 - Introduction: The Fallout at Synapse and Evolve Bank

The hosts introduce the episode, setting the stage for the discussion on the Synapse collapse, Evolve Bank’s consent order, and broader fintech implications.

Chapter 2: 00:05:30 - Banking as a Service (BaaS): Growing Pains and Third-Party Risks

A look at the evolution of Banking as a Service, the role of middleware, and the challenges banks face in third-party risk management.

Chapter 3: 00:14:45 - The Synapse Saga: What Went Wrong?

Breaking down the Synapse bankruptcy, reconciliation issues, and the complex web of banks and fintechs involved in the debacle.

Chapter 4: 00:26:00 - The Regulatory Gaps: Whose Job Is It to Watch?

A discussion on the perceived regulatory gaps, the role of state regulators, and the absence of a unified oversight body for fintechs.

Chapter 5: 00:38:15 - Consent Orders: Patterns, Themes, and Lessons Learned

Analysis of recent consent orders issued to banks, recurring themes like AML, CIP, reconciliation, and what banks must address to stay compliant.

Chapter 6: 00:50:00 - Fintechs and Banks: Managing Risk, Partnerships, and Expectations

How fintechs and banks can work better together, focusing on due diligence, reconciliation processes, and board governance.

Chapter 7: 01:02:15 - State Regulation vs. Federal Solutions: Is a New License on the Horizon?

Exploring the potential for state regulators to create new license types for fintechs and why a federal framework might be needed.

Chapter 8: 01:12:30 - Advice for Banks Entering Fintech Partnerships

Practical advice for banks considering fintech partnerships: start small, evaluate processes, and ensure technology and compliance alignment.

Chapter 9: 01:20:00 - The Future of BaaS: From Crisis to Opportunity

A hopeful perspective on the future of Banking as a Service, predicting a “flight to quality” and stronger partnerships through better risk management.

Chapter 10:

Final reflections on the importance of effective risk management and why banks must embrace calculated risks to innovate and thrive.

Related Content:

Episode 551: This Spot Looks Soft

Episode 547: The BaaS Bombs Drop + Synapse Bankruptcy

Bank-Fintech Partnerships, Open Banking and AI...oh my!

Episode 562: Hot Takes: Regulatory Headwinds for BaaS

Episode 557: The Power of Resilience

https://www.youtube.com/watch?v=NC4LF19DAfs