It was only Thursday of last week when our lead story was about the challenges banks were facing in the Banking-as-a-Service space.
Then Friday we learned that Blue Ridge Bank was hit with its second regulatory action in less than 18 months and is now deemed to be in a “troubled condition”.
Kudos to our unofficial fintech regulatory watchdog, Jason Mikula, for breaking this story. American Banker also picked it up on Friday.
Blue Ridge Bank is a $3.3 billion-asset bank based in Virginia and was an early mover in the BaaS space. The consent order came out of the OCC’s June exam and Blue Ridge claims to have made significant progress since then.
The banks needs to ramp up its AML controls, capital position and third party management.
It is interesting that industry expert Jonah Crane said “every bank with a large BaaS program will see some type of regulatory action over the next year.”
For the fintech companies that rely on these banks for banking services, this is bad news. Building redundancy into your banking partnerships is now essential.
As B2B payment technology catches up to other areas of fintech, TreviPay CEO Brandon Spear said exciting trends are emerging. In late 2023, TreviPay released the B2B Buyers Payments Preference Study. It updates similar research conducted in 2019.
LAC: Fintech Islands – a great experience for both business and pleasure! Over the past few years, I’ve been to many fintech events around the world, from London to Las Vegas; Sydney to Singapore; Kigali to Karachi; but last week was a first, for me, Fintech Islands in Barbados. Well yes, someone had to go I guess and so, when asked, how could I resist?
To sponsor our newsletters and reach 220,000 fintech enthusiasts with your message, contact us here.
Peter Renton is the chairman and co-founder of Fintech Nexus, the world’s largest digital media company focused on fintech. Peter has been writing about fintech since 2010 and he is the author and creator of the Fintech One-on-One Podcast, the first and longest-running fintech interview series.