Manatt Fintech and Blockchain and Cryptocurrency Leader Brian Korn was quoted by BAI on fintech companies’ growing partnership with banks and the need to evolve their compliance processes. Regulators are keeping an eye out for fintechs that are trying to take shortcuts, according to Korn. “They are watching for companies that are taking a different interpretation of rules and licensing laws than their peers. And the No. 1 driver of regulatory activity is always customer complaints,” he said.
Regulators are wary of fintechs’ ability to run banks safely and effectively. “A lot of fintech executives aren’t seasoned bankers, so they definitely have a steep learning curve when it comes to banking regulations,” Korn added. “Before applying for regulatory approval of any bank acquisition, they need to have an adequate compliance team in place.”
Read the full article here.