Good question Charlie,
I may not be the most objective responder to your question. But my situation does allow me some perspective. My response is that bank regulators don't care where the new initiative originates as long as bank management exhibits due diligence with regard to the processes, products, client experience, and regulatory posture needed to initiate new banking ideas. Banks cannot outsource accountability. But, good ideas that are well executed are necessary for relevancy and viability in this evolving environment. Regulators seem to be well aware that whether internal or external to the current employee base, banks must find ways to harness better methods. I have found bank regulators good to work with in regards to ideas originated by fintech if the approaches are well-founded and well-developed. I would be happy to talk about specifics anytime you would like.
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Neil Stanley
President of Community Banking
TS Banking Group
Treynor, Iowa
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Original Message:
Sent: 04-05-2018 14:20
From: Charlie Funk
Subject: FINTECH PARTNERSHIPS
Many banks are starting to partner with Fintechs. Regulators have extremely high standards for banks when entering these sorts of arrangements. I am curious as to whether banks that have entered into relationships with outside Fintech vendors have seen increased regulatory scrutiny? Any lessons learned of which we should be aware?
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Charlie Funk
President & CEO
MidWestOne Bank
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