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