10 Tips For Fintechs In Navigating Sponsor Bank Relationships Through This Banking Crisis

The March 2023 banking crisis will test bank sponsorships.

The current banking crisis, which in significant part has been focused on regional banks catering to fintech companies, is likely to result in increasing regulatory focus on an industry already subject to regulatory scrutiny. For example, the U.S. Department of the Treasury has already recommended that federal financial regulators pursue a more robust regulatory framework for non-bank financial services. The failure of fintech-focused banks will put further pressure on those that remain to increase compliance requirements and reduce risk.

In this client alert, MoFo's Fintech Team gives tips for fintechs looking to ride out the current crisis while maintaining or diversifying their bank relationships, protecting their customers, and remaining compliant.