Banking as a Service (BaaS) continues to be in the crosshairs of the federal government.
The latest banks to be hit with consent orders from the FDIC are Sutton Bank and Piermont Bank.
Sutton Bank’s consent order dated February 1 was focused on third-party risk management. The banks must implement “a revised AML/CFT program designed to maintain bank compliance with the Bank Secrecy Act.” It must also compile an inventory of all its third-party relationships.
Piermont Bank’s consent order was dated February 26 and directs the bank to review all transactions since September 2022 to all suspicious activity was reported. There were also new requirements for supervision of management and third-party risk management.
As Piermont CEO Wendy Cai-Lee commented, “Every bank that touches BaaS is getting an enforcement action.”
Despite all this negative attention, BaaS is actually booming with new banks still clamoring to get into the space. Interesting times.
Featured
> Piermont, Sutton banks hit with FDIC consent orders over BaaS
By Caitlin Mullen
The FDIC ordered Piermont to review all transactions since September 2022 to ensure all suspicious activity was reported. Sutton, meanwhile, must compile an inventory of its third-party relationships.
From Fintech Nexus
> Criminal Masterminds Take a Day Off: No Fintech Fraud Today
By Fintech Nexus Staff
In celebration of April Fools Day we bring you an incredible story from the world of fintech fraud.
> Colombian fintechs lead the way in VC investments
By David Feliba
Colombian fintechs have been very active in the VC space in 2024, with a number of startups raising over $150 million in funding so far.
Podcast
> Chris Dean, Co-Founder & CEO of Treasury Prime on the banking-as-a-service landscape
Banking as a Service (BaaS) has gone through an upheaval in the first quarter of 2024. Chris Dean, CEO of Treasury Prime,…
Listen Now
Also Making News
- USA: Custodia Bank Loses Lawsuit Challenging Fed Rejection of Master Account Application
A federal judge ruled that Custodia Bank, a Wyoming special-purpose depository institution, isn’t entitled to membership in the Federal Reserve or to a Fed master account.
- USA: CFPB’s 1033 regulation could be a boon for small banks
The proposed data sharing rules could create opportunities for forward-thinking financial institutions to better serve their customers and meet ever-growing expectations for digital finance.
- Global: Rakuten Could Combine Bank and FinTech Operations
Japanese conglomerate Rakuten is considering merging its financial operations into one unit. The plan, announced Monday (April 1), would consolidate the company’s bank, insurance, securities, and card company and other Fintech businesses into one group.
- USA: Interoperability: Unlocking the future of cross-platform payments
Visa+ is now live with PayPal, Venmo and DailyPay in the U.S. Astra, Brightwell, Cross River Bank, Current, Fiserv, i2c and Tabapay will expand Visa+ to new use cases.
- Global: GGV Capital is no more, as partners announce two separate brands
The VCs who long ran GGV Capital have settled on two new brands, roughly six months after announcing they would split their U.S. and Asia operations.
- USA: Proptech Divvy Introduces Service to Assist Potential Homebuyers with Navigating Real Estate Markets
Adena Hefets, the co-founder & CEO of Divvy Homes, a Proptech company on a mission to make homeownership accessible to everyone, notes that the firm is introducing DivvyUp, which will help clients prepare for homeownership with confidence.
To sponsor our newsletters and reach 180,000 fintech enthusiasts with your message, contact us here.
