Compliance Management and Fintech: Natural Enemies?
Image: Banking Exchange
An article at Banking Exchange takes an interesting look at the often uneasy relationship between financial technology organizations vs. the Fintech market covering the hot topic of compliance management. Instruments like the expanded UDAAP standards implemented by the Consumer Financial Protection Bureau need to be at the forefront.
Richard Holbrook, chairman and CEO of $9.6 billion-assets Eastern Bank, Boston, stated his institution’s philosophy just after his top compliance officer had spoken at the recent Mutual Community Bank Conference of the American Bankers Association March 14:
“Compliance is not designed to be the place you get a ‘no.’ It’s the place designed to show you how to get a ‘yes’.”
Fintech should be helping banks, but there is a natural competition when Fintech is looking for faster market adoption, while many banks prefer a “steady as she goes” approach.
Compliance in check processing is always a consideration as well. New controls are now available to enhance bank protections in traditional workflows via new technologies and techniques for data extraction. By implementing new approaches, banks can now limit their risk and expand coverage in all kinds of areas ranging from OFAC, AML, Reg CC, and KYC.
One thing is for sure – – compliance is not going away.