3 Ways Risk Management Platform Sardine Can Supercharge Bank Fraud & Compliance Stacks

The new partnership between Sardine and Treasury Prime makes embedded finance faster and safer for banks.
Headshot of Daisy Lin
Daisy Lin
Head of Content
June 28, 2023
Sardine + Treasury Prime

Banks cannot afford to ignore embedded finance any longer. With projected five-fold growth to $248.4 billion by 2032, the market for fintech and embedded banking apps means big opportunities for smaller banks seeking to modernize and win over new customers.

But opportunity isn’t without risk. In the rush to grow fast, tech-friendly banks like Silvergate and Silicon Valley Bank have folded, and others have come under regulatory scrutiny, becoming emblems of what Sardine’s Simon Taylor describes as a “crisis of trust and confidence.” Fintechs fear partnering with banks that won’t be there for them tomorrow; banks fear shouldering risk for partners that offer little visibility into operations. 

This is where Treasury Prime and our new partner Sardine comes in. Both platforms prioritize visibility and customizability. Our rigorous approach to compliance has made us stand apart in an industry where some players have come under fire for cutting corners. The same is true of our new partner Sardine, the all-in-one risk management platform. Together, our platforms offer compounded benefits. 

“We're in a crisis of trust and confidence. If the last six months have taught us anything, it's that consumers and businesses need partners they can trust. Individually, Treasury Prime and Sardine have built their industry reputations on their abilities to serve as a mark of trust. It only makes sense to combine the two and set a new industry standard for compliance,” says Sardine Head of Content and Strategy Taylor, who also authors the Fintech Brainfood newsletter.

Watch our on-demand webinar Strategies for Building Trust in Embedded Finance

Embedded banking software platform Treasury Prime + Sardine for fintech fraud prevention

Sardine offers real-time fraud detection KYC/KYB, AML, transaction monitoring, case management, and more. Here’s what you need to know about how Sardine can bolster your bank’s compliance program, ensuring you can harness the best opportunities embedded finance has to offer without compromising on fraud prevention and risk mitigation. 

1. Best-in-class fraud detection

Some of Sardine’s earliest clients were in the crypto space, and the company built one of the fastest and safest ways to onboard crypto. What that means is Sardine was built to handle some of the riskiest fraud and transaction monitoring use cases. 

“We’re really, really good at detecting account takeover and we’re really, really good at detecting crypto scams. A massive amount of fraud right now leads to crypto. Nobody has better visibility into that than Sardine. We grew up in crypto and learned a few things that give us an edge when it comes to detecting fraud of all types,” says Taylor.

Sardine is also expert at detecting push payment fraud, such as fraud using popular digital payments network Zelle. The company’s robust, AI-driven data models offer detection of suspicious actors, anomalies, and fraudulent behavior across use cases. These advanced capabilities make Sardine both an excellent first-line defense against fraud and a great tool for augmenting an existing compliance program. 

2. Real-time oversight dashboard

Sardine’s oversight dashboard acts as a single source of truth, offering instant visibility into user actions and transactional data to sponsor banks, BaaS providers and fintechs alike. This enables banks to manage risk in real time within specific programs across their portfolios, ensuring proactive detection and prevention of fraudulent activities. 

“Sardine breaks down data silos and enables our teams to efficiently identify issues for remediation and quickly pull together and share relevant data for further audit, examination, and regulatory purposes as needed,” said Josh Hofer, Chief Risk & Information Security Officer of Stearns Bank, which leverages Sardine’s platform. “This allows us to keep up with fintech innovation and scale our fintech offerings while enhancing risk management and streamlining compliance — what we’re providing with Sardine is transformative for fintechs, community banks, and fintech sponsorship.”

Sardine also allows banks to resell its tools to fintechs. That makes it easier for banks to onboard fintechs onto a platform already integrated with bank infrastructure, further enabling smooth and centralized fraud detection and prevention. 

3. Flexible implementation at scale

Sardine clients have full control over how they implement fraud and compliance rules. That means banks can set universal rules for all programs, modify rules for individual programs, add new rules for all programs at once or individually, and monitor rule performance across different use cases. All of this is possible through an easy-to-use no-code rule builder. 

By enabling banks to manage and assign cases within queues for individual programs, Sardine empowers banks to deploy case management at scale. 

“Banks can use Sardine to communicate directly with fintech and embedded finance partners about addressing concerns that have been detected. From within the centralized dashboard, banks can flag cases for investigation or SAR filing and even e-file to FinCEN directly,” says Taylor. 

Sardine’s capabilities complement Treasury Prime’s own tools for visibility and control. Treasury Prime’s ledger enables banks to view transactions on a fintech partner’s platform with the same level of detail as transactions within the bank’s direct customer accounts. Unlike other BaaS providers, Treasury Prime facilitates direct communication between fintechs, companies and banks, so they can build strong and lasting relationships with partners in growth. 

Sardine’s entry into Treasury Prime’s network of highly-vetted, top-of-line compliance vendors in our newly launched partner marketplace means that banks can integrate quickly with multiple solutions with one API instead of having to build out separate integrations. 

To learn more about how Sardine’s risk management platform and partnership with Treasury Prime can supercharge your bank’s fintech compliance program, watch our joint webinar Strategies for Building Trust in Embedded Finance now. 

Wondering how embedded banking could help your business? Contact Treasury Prime — we have a true multi-bank network, the deepest bank core integrations, and extensive compliance experience. Read more about our $40 million Series C Funding and why Tearsheet named us the Best Banking as a Service company for the second year in a row. Talk to the best embedded finance team in the industry.

Related Risk Management Content: 

Automating Financial Crime Effectiveness Testing with Cable

Future of Banking: Grasshopper Bank

Webinar: OneKey to Help Banks Manage Concentration Risk

← Back to blog