Manatt fintech practice Leader Brian Korn spoke with BAI Banking Strategies on regulatory and compliance issues that have arisen as fintech companies and banks increasingly become intertwined.
Korn explained that when it comes to regulators, there are no shortcuts. “They are watching for companies that are taking a different interpretation of rules and licensing laws than their peers. And the number one driver of regulatory activity is always customer complaints.”
The publication and Korn also discussed the uptick of fintech companies looking to acquire community bank charters. He warned that many banks have legacy issues that need to be respected and dealt with. “I think fintechs have to be very careful,” he added. “Fintechs that purchase banks add new responsibilities—for compliance, safety and soundness—to their existing efforts to scale customer growth and profitability.”
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