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FINTECH PARTNERSHIPS

FINTECH PARTNERSHIPS
Jul 15, 2025 4:18:18 PM

Charlie,

Our bank has engaged with Banker's Healthcare Group (BHG) and Lending Club (via BancAlliance).  Both loan files have been kept to modest percentages of total capital.  We took both opportunities to a full Board review over a few months, did full Vendor Management, and revised policy to accommodate the new relationships. We've had only a State (MO) review since having aligned with the two Fintechs and had no comments.  I've discussed our engagement with the FRB-St. Louis and we don't expect any issues from them either.  Be patient and thorough in your due diligence and you should not have issues.  Kit

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------Original Message------

​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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