FinWise EYE ON:

FinWise EYE ON:

By FinWise BankBusiness
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FinWise EYE ON: episodes

  • Common Pitfalls in Reg E Compliance - Sarah Fernandez, Kaufman Rossin

    In this podcast episode, Sarah Grotta and Sarah Fernandez discuss the critical importance of Regulation E (Reg E) in the banking and fintech sectors. They explore the challenges financial institutions face in compliance, the role of technology in dispute resolution, and best practices for managing partnerships with fintechs. The conversation also highlights common errors in Reg E compliance and emphasizes the need for consumer protection in dispute management. As new payment technologies emerge, the discussion underscores the importance of adapting compliance strategies to ensure consumer rights are upheld.

    Takeaways

    • Reg E is essential for consumer protection in banking.
    • Financial institutions must understand compliance challenges.
    • Technology can streamline dispute resolution processes.
    • Onboarding fintech partners requires thorough due diligence.
    • Reg E compliance is evolving with new payment technologies.
    • Testing and documentation are crucial for compliance.
    • Common errors include misunderstanding timing requirements.
    • Consumer communication is key in dispute management.
    • Financial institutions should monitor for potential fraud.
    • Continuous improvement in compliance processes is necessary.

      • Kaufman Rossin

       

      33 min
    • What are industry experts saying about financial trends and the future of fintech?

       

      Join us for an EYE ON Podcast with our special guests, all industry leaders, who stopped by our FinWise satellite office during our time at Money20/20, one of the world’s largest fintech events, to give us their insights into top trends, current state of fintech and bank partnerships, financial inclusion, and emerging technologies shaping the future of embedded finance and the fintech industry. There is palpable excitement for the possibilities in the fintech industry shared in this special podcast edition.

      Money20/20 Guests

      • Such Patil, Head of Partnerships, and Alli Nilsen, Senior Strategic Partnerships Manager, Lithic (:30 – 8:33)
    • Glenn Murray, Chief Strategy Officer, DreamFi (8:35 – 13:50)
    • Taylor Cembalist, Director of Customer Success and Partnerships, NetXD (13:52 – 18:13)
    • Krishnan Gopalakrishnan, Co-Founder and CEO, Plannery, and Andrew First, Co-Founder and CTO, Plannery (18:15 – 23:37)
    • Sonja McIntosh, Vice President of Operations, DreamFI (23:39 – 24:37)
    • Lee Easton, President, iDentify (24:39 – 31:08)
    • Brittany Decker, Sr. Director, Head of Sponsor Banks, Visa (31:10 – 45:54)
    • Shawn Ghuman, Enterprise Sales Lead, Sardine (45:56 – 51:24)
    • Nicola Morris, COO, Highnote (51:26 – 55:12)
    • Nathan Lemon, Head of Partnerships, IC Group (55:14 – 59:22)
    • Stewart Watterson, Strategic Advisor, Datos Insights (59:24 – 65:11)
    • David Ritter, CEO, Privacy Lock (65:13 – 70:30)
      • 1 hr 11 min
    • Stop! Collaborate and Listen - as Bankers Discuss Working Together on Innovation.

      Summary

      In this episode of the EYE ON: podcast, Robert Keil speaks with Jason Henrichs from Alloy Labs about the evolving landscape of community banking. They discuss the challenges and opportunities faced by community banks in a digital-first world, the importance of technology and data, and strategies for competing against larger banks. Jason shares insights on how community banks can leverage partnerships, innovate, and navigate regulatory challenges to thrive in the future.

       

      Takeaways

      • Jason Henrichs has 30 years of experience in financial services.
    • Community banks excel in small business lending but struggle with deposits.
    • Banking as a service offers community banks a competitive edge.
    • Community banks should redefine their market beyond geography.
    • Investing in technology is crucial for future growth.
    • Data availability and payment systems are essential for success.
    • Hope and prayer are not viable strategies for community banks.
    • Community banks need to focus on unique niches to thrive.
    • Collaboration among banks can lead to shared knowledge and success.
    • Regulatory challenges require proactive engagement and data-driven solutions.

      • https://www.alloylabs.com/

      https://www.linkedin.com/in/jasonhenrichs/

       

      46 min
    • An Equity Investor Guide to Fintech Banking: Insights with industry expert, Jason Mikula

      In this episode of the FinWise EYE ON: podcast, host Juan Arias our Head of Corporate Development & Investor Relations, sits down with Jason Mikula, an  authority in the fintech banking industry and head of industry strategy for banking and fintech at Taktile. An insightful discussion for equity investors and industry participants to help them understand the current state of the fintech-banking partnership industry, the evolution of technology in banking, regulatory challenges, and the differentiation between fintechs and traditional banking institutions. Jason shares his insights on recent regulatory actions, compliance investment, the broader impacts of fintech in the financial sector, and offers advice for investors evaluating fintech and banking stocks.

      34 min
    • Matching a Fintech Program to the Right Sponsor Bank - Christienne Genaro

      In this episode, Sarah Grotta, Deputy Chief Fintech Officer at FinWise Bank, discusses the concept of a backup bank with Christienne Genaro, who manages bank partnerships at Galileo. They explore the role of bank partnerships in the fintech marketplace and the importance of compliance in these relationships. They also discuss the process of finding the right sponsor bank for a fintech and the shift in use cases, including cross-border solutions and embedded finance.

      The conversation highlights the need for alignment between fintechs and banks on BSA and reporting, as well as the shift away from the interchange business model. They emphasize that a backup bank is not just a backup prom date, but a strategic partnership that requires careful consideration and preparation. They also explore the idea of banks forming backup bank coalitions to provide customers with alternative options.

      The conversation touches on the factors that may prompt a fintech to seek a second bank, such as the need for diversification and the changing regulatory landscape. They also discuss the importance of building strong relationships between issuers, processors, and banks to ensure success.

      Takeaways

      • Bank partnerships play a crucial role in the fintech marketplace, and finding the right sponsor bank is essential for fintech success.
    • Compliance is a key consideration in bank partnerships, and fintechs should seek sponsor banks that are reg savvy and have a good relationship with regulators.
    • Fintechs are exploring new use cases, including cross-border solutions and embedded finance, as they expand their product offerings.
    • Alignment on BSA and reporting is crucial for fintechs and banks to ensure a successful partnership.
    • The marketplace is shifting away from the interchange business model, and fintechs are looking for sustainable revenue streams beyond interchange fees.
    • Processors like Galileo can help fintechs find the right sponsor bank by providing curated lists and facilitating introductions. Having a backup bank is not just a backup prom date, but a strategic partnership that requires careful consideration and preparation.
    • Banks may form backup bank coalitions to provide customers with alternative options.
    • Factors that may prompt a fintech to seek a second bank include the need for diversification and the changing regulatory landscape.
    • Building strong relationships between issuers, processors, and banks is crucial for success in the fintech industry.
      • 46 min
    • How Do Fintechs Become Sponsor Bank Ready? - Stan Orszula

      In this episode, Sarah Grotta interviews Stan Orszula, a partner at BFKN, about the future of banking and the role of fintechs. They discuss how fintechs are an extension of what community banks do, offering specialized services to different communities. They also explore the challenges and opportunities for community banks in partnering with fintechs, the importance of regulatory oversight, and the need for preparedness and education in the fintech industry. They touch on topics such as BSA/AML processes, broker deposits, backup banks, and potential future regulations.

      Takeaways

      • Fintechs are an extension of what community banks do, offering specialized services to different communities.
    • Community banks can benefit from partnering with fintechs to stay relevant and provide innovative solutions.
    • Regulatory oversight is crucial in fintech-bank partnerships, especially in areas like BSA/AML processes.
    • Fintechs should be prepared, educate themselves about the regulatory environment, and seek guidance from experienced professionals.
    • Backup banks and contingency plans are important for fintechs and banks to ensure smooth transitions and protect end users.
    • Future regulations may focus on areas like FBO accounts and broker deposits.

      • Mentioned in this episode:

      Third-Party Relationships: Interagency Guidance on Risk Management: https://www.occ.gov/news-issuances/bulletins/2023/bulletin-2023-17.html

       

      35 min
    • Flying Drones and Fintech Data Integrity: What Do They Have in Common? - Lee Easton

      Lee Easton, President of iDentify, shares his journey from the world of drones to helping financial institutions make sense of their data. He discusses the key data issues that banks are trying to solve, such as transaction monitoring and reconciliation. Lee also talks about the potential of cloud infrastructure and tools like Snowflake in improving data management in the banking industry. He envisions a future where major core providers are on Snowflake or similar platforms, enabling real-time data sharing and improving operations.

      Takeaways

      • iDentify helps financial institutions solve key data issues such as transaction monitoring and reconciliation.
    • Cloud infrastructure and tools like Snowflake can improve data management in the banking industry.
    • Real-time data sharing can enhance fraud detection and risk management in banks.
    • Moving away from file-based data exchange can reduce operational failures and improve efficiency.

      • https://www.goidentify.com/

      The Fintech Map

      27 min
    • The Rise, Stumble, and Forward Go of Fintech - Jason Mikula

      In this episode, Robert Keil and Jason Mikula discuss the state of Fintech and the impact it has had on the banking industry. They explore the successes and challenges of Fintech companies, particularly in the areas of consumer banking and lending. They also discuss the role of traditional banks in partnering with Fintechs and the potential for innovation and disruption in the industry.

      The conversation highlights the need for continued improvement in areas such as regulatory compliance, customer service, and the management of complex technology ecosystems. The conversation explores the challenges and risks of new banking business models, particularly in the context of banking as a service. It discusses the metrics and behaviors that can lead to unhealthy businesses, such as focusing on top-line revenue and ignoring profitability. It also highlights the importance of clear differentiation and understanding the customer segment when entering a competitive market.

      The conversation touches on the differences between European and US fintechs, including the regulatory frameworks and the benefits of starting as an e-money license before becoming a bank. It concludes with a discussion on the future of regulation in the fintech industry and the potential impact of upcoming elections.

      Be the first to get your hands on Jason's new book:

      Banking as a Service: Opportunities, Challenges, and Risks of New Banking Business Models - by Jason Mikula

      https://fintechbusinessweekly.substack.com/

      Takeaways

      • Fintech has brought about significant changes in the banking industry, particularly in consumer banking and lending.
    • Fintechs have addressed issues such as high fees, clunky technology, and predatory lending practices that were prevalent in traditional banks.
    • Partnerships between traditional banks and Fintechs have led to innovative solutions and improved customer experiences.
    • However, there are challenges in areas such as regulatory compliance, customer service, and the management of complex technology ecosystems that need to be addressed.
    • The role of VCs in funding Fintechs and their influence on the success or failure of these companies is a topic of discussion. Metrics that focus solely on top-line revenue can lead to unhealthy businesses.
    • Clear differentiation and understanding of the customer segment are crucial when entering a competitive market.
    • Starting as an e-money license before becoming a bank can provide a clear framework for fintech operations.
    • The future of regulation in the fintech industry is uncertain, with potential changes depending on upcoming elections.

      • Banking as a Service: Opportunities, Challenges, and Risks of New Banking Business Models - by Jason Mikula

      https://fintechbusinessweekly.substack.com/

      59 min
    • Breaking Financial Barriers: DreamFi's Innovative Approach to Empowering Futures & Transforming Lives - Glenn Murray

      Glenn Murray, Chief Strategy Officer at DreamFi, joins Nick Chiappetti on the FinWise EYE ON: FINTECH podcast. They discuss the purpose and mission of DreamFi, which is to provide financial inclusion and empower underserved communities. DreamFi aims to be a super platform that meets people where they are and helps them grow their credit, learn about financial literacy, and improve their relationship with money. They want to address the root causes of financial exclusion and provide a comprehensive range of services, including banking, lending, and investing. The conversation also touches on the importance of compliance, the need for innovation in the payments landscape, and the role of education in reaching the underserved market.

      Takeaways

      • DreamFi aims to provide financial inclusion and empower underserved communities.
    • They want to be a comprehensive super platform that meets people where they are and helps them grow their credit, learn about financial literacy, and improve their relationship with money.
    • DreamFi addresses the root causes of financial exclusion and offers a range of services including banking, lending, and investing.
    • Compliance and regulatory oversight are important in the financial industry to ensure consumer safety.
    • Innovation in the payments landscape is necessary to provide better solutions for the underserved market.
    • Education plays a crucial role in reaching and empowering underserved communities.

      • https://www.linkedin.com/company/dreamfinancial/

      29 min
    • Research, Funding, and Future Fintech - Ryan Christiansen

      In this episode of the EYE ON: FINTECH Podcast, Nathan Mills interviews Ryan Christiansen, the Executive Director of the Stena Center for Financial Technology at the University of Utah. They discuss Ryan's background and how he ended up in the fintech industry. They also talk about the mission of the Stena Center, which is to expand fintech and make Utah a major fintech hub globally. The center focuses on four program areas: academics, partnerships, venture funding, and an annual conference called fintechXchange. They also discuss the Xstudio incubator and the talented students involved in the program.

      The conversation explores the high engagement levels of students in fintech, the growth of Utah as a fintech hub, and the collaboration between banks and fintechs. The Stena Center is focused on building excellence in four programming areas: education, conferences, degree programs, and creating a fintech hub in Utah. Utah's financial services background, technological innovation, and collaborative approach contribute to its status as a fintech hub. The conversation also touches on the challenges and opportunities in the collaboration between banks and fintechs, as well as the need for clarity from regulators.

      Show links:

      Stena Center for Financial Technology

      fintechXstudio

      Fintech xChange Conference

      Stena Center on Linkedin

      Takeaways

      • The Stena Center for Financial Technology at the University of Utah aims to expand fintech and make Utah a major fintech hub globally.
    • The center focuses on four program areas: academics, partnerships, venture funding, and an annual conference called fintechXchange. The Xstudio incubator provides office space and support for early-stage fintech companies.
    • The center works closely with students, who are passionate and talented in the fintech space.
    • The goal is to develop a strong fintech hub in Utah and provide students with job opportunities in the industry. Students in fintech show high levels of engagement and are eager to network and attend conferences.
    • Utah is emerging as a fintech hub due to its financial services background, technological innovation, and collaborative approach.
    • Collaboration between banks and fintechs is increasing, with some banks acquiring fintech companies.
    • Challenges in the collaboration include compliance with bank regulations and the need for more clarity from regulators.
      • 50 min

    About FinWise EYE ON:

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    Keeping an EYE ON all things in the Fintech Banking universe. A podcast from FinWise Bank. www.finwise.bank. FINW.