For community banks and credit unions, fintech partnerships offer exciting opportunities for growth and innovation. However, the challenge lies in managing these relationships efficiently—especially with limited resources and a growing list of regulatory requirements. Balancing the need for growth with the demands of compliance can stretch even the most seasoned teams thin.
Here’s how small institutions can navigate the challenge:
Don’t jump in blindly. Establish clear guidelines on what you expect from fintech partners—risk thresholds, compliance needs, and performance standards. This helps avoid surprises later and ensures everyone’s on the same page. With a well-defined framework, you’ll have a better understanding of the key risks and compliance obligations before entering into any partnerships.
Manual tasks like document collection, due diligence checks, and transaction monitoring can eat up time and budget. Use automation and AI-powered platforms to handle the heavy lifting—like verifying fintech data, tracking activity, and flagging suspicious patterns. Automation reduces human error and ensures that routine tasks are performed swiftly and accurately, freeing up your team for higher-level decision-making.
Even with the best tech, you’ll still need human oversight. Create a layered approach:
By using a combination of tech and human expertise, you’ll maximize efficiency while ensuring that compliance is maintained. Automation handles the repetitive tasks, and your compliance team steps in when deep analysis or judgment is required.
Outsourcing parts of your compliance work to a trusted partner can save your team from getting bogged down. Expert analysts can review flagged transactions, investigate cases, and make recommendations—freeing your staff to focus on the bigger picture. This ensures you’re not overwhelmed by the volume of work but still get the expert oversight necessary to stay compliant.
When you’re managing multiple fintech partners, clear communication is key. Use secure portals and shared dashboards to track progress, resolve issues quickly, and maintain transparency with both your team and your partners. This reduces the risk of misunderstandings and keeps everyone on the same page, enabling a more efficient and smooth partnership.
Balancing growth and compliance doesn’t have to mean stretching your team thin. With the right mix of technology and human support, small banks can manage multiple fintech partnerships confidently—and without breaking the budget.
Ready to take the next step in managing your fintech partnerships more efficiently? Explore how Across can streamline your compliance processes and help you scale with confidence. Contact us today for a demo and see how we can help your bank grow its fintech partnerships with ease.
