Helping Fintechs Better Manage Risk in a Highly-Regulated Environment

For the past couple of years, we’ve worked with fintechs to quickly set up compliance programs and launch dozens of banking products. As we spoke with more users, it became clear that businesses needed a better way to assess their risk profile and design compliance programs that would scale as they grow.

In that time, the regulatory landscape has also started to shift for fintechs. With fintechs becoming more visible consumer-facing businesses, their explosive growth has in many ways outpaced compliance, sparking new calls for regulatory oversight. This phenomenon only heightens the risk for businesses in the evolving fintech world.

In response, we’re investing more in compliance to help businesses operate more effectively in this changing regulatory environment. We’re excited to announce that we’ve launched a new compliance solution that enables fintech companies to build and launch customized risk-based compliance programs in a matter of weeks.

Risk is never one size fits all

Every fintech company provides a distinct financial solution to a specific consumer base. In order for a company to manage and lower its risk, it is necessary to tailor compliance strategy to its business model rather than use a one-size-fits-all compliance approach. Each fintech is impacted by different laws depending on its industry, use case, and customer base, or whether it’s in an emerging industry like cannabis or cryptocurrency.

Our philosophy is predicated on empowerment and proactive compliance. You know your business and your customers’ behavior best, which makes you best equipped to identify risky and potentially suspicious behavior. Giving you the driver’s seat in managing your own compliance program, with the help of Treasury Prime, will better protect you from risks that could harm your business and customers, and will position you to succeed and scale more efficiently.

Our 4-point compliance framework will help you build out your compliance program. Each element is crucial to mitigating reputational and financial risk to the company. 

1. Risk Assessment: Treasury Prime conducts a risk assessment that will help you build a compliance program specific to your risk profile. Risk Profiles are based on various factors such as industry, money movement, geographic location, and so on. Once a risk profile is established, you will then have a better idea of the kind of compliance program you need.
    
2. Due Diligence: Treasury Prime will work with you every step of the way to make sure that all bank requirements are met, such as having certain policies, business continuity plans, and disclosures available.
   
   
3. Customer Communication: As part of the bank diligence and approval, you will need to ensure that customer-facing content like marketing collateral, promotional materials, and website content are visible to the bank partners for approval. Treasury Prime will work with you to facilitate bank review and approval, as well as ensure that all required customer communications are in place.
   

4. BSA/AML: A customized BSA/ AML Compliance Program will mitigate potential risk to your business. Treasury Prime’s Compliance Team will help walk you through each compliance component required for the business, such as Know Your Customer (KYC) reviews, Sanctions Monitoring, Transaction Monitoring, setting up card controls, Reg E Compliance with card disputes, and ACH Return Rate Monitoring. These building blocks will help you scale your business and allow rapid growth while thwarting financial crime and fraud. 
   

To learn more about how fintechs and sponsor banks can partner to manage compliance and risk oversight, watch our webinar with Unit21.

If you are launching a banking product, Treasury Prime is ready to actively partner with you in collaboration with banks, guide you through the development of a compliance program, and connect you with vendors that can help you develop a best-in-class compliance program. To learn more to enroll in our beta program, contact us for more info. Developers can also familiarize themselves with our offerings by visiting our Sandbox.