Eight Things About Fintech-Bank Partnership Term Sheets

Sometimes overlooked as just a preliminary document that establishes economics, the term sheet can end up being more important than the ultimate definitive agreement. Beyond pricing, a thoughtfully marked term sheet can align the parties on other key business terms, stake out consensus on other material issues that are important to the parties, and even set up regulatory risk positions. And when a bank and fintech company work fast and well together on their term sheet, they begin to establish the rhythm and tone for the definitive agreement as well as the overall relationship and program. In this edition of Fintech Flash, we raise for consideration eight things about fintech-bank partnership term sheets that hopefully will be helpful in your preparation and review of them.