BankProv, is one of the oldest banks in the northeastern corridor of the United States. Established over a century ago, BankProv has a long-standing tradition of serving its community. However, in the past four years, the bank has embraced innovation as a core strategy, expanding into digital assets, cryptocurrency, and offering Banking as a Service (BaaS) to fintech companies. This shift was driven by a desire to stay relevant and competitive in an evolving financial landscape characterized by rapid technological advancements and new market opportunities.

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Challenges

As BankProv entered the fintech space, several challenges emerged:

• Increased Complexity and Effort: The integration of digital assets and BaaS into their traditional banking framework demanded significant effort and introduced unforeseen complexities. Paul Achman, Bank Secrecy Act Officer at BankProv, shared, “We underestimated, initially, the amount of effort and the amount of complexity that some of these relationships bring to the bank, both in the digital assets and the banking as a service space.”
• Evolving Regulatory Landscape: The regulatory requirements for digital assets and fintech partnerships became more stringent, adding another layer of complexity. Achman noted, “The regulatory environment for these types of relationships has certainly become more robust in the last three years.”
• Custom Solutions Overload: Initially, BankProv customized solutions for each fintech partner, which soon became overwhelming and unmanageable. “We were customizing solutions for each of our fintechs, and I think the complexity of those got extremely overwhelming for us and didn’t yield probably the right results,” Achman explained.‍
• Inefficient Compliance Tools: BankProv’s existing compliance tools were not suited for the unique requirements of fintech clients. Their previous solution, tailored for traditional banking, could not effectively handle the diverse data formats of fintech customers, leading to inefficient manual monitoring processes. Achman stated, “Our biggest challenge there was trying to put that square peg in a round hole. It just didn’t work. We spent years trying to implement that solution and then finally just had to give up. All the while, we were internally monitoring customers and transactions using manual processes, which are very inefficient.”

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Solution: Adopting Cable

To overcome these challenges, BankProv explored various compliance tools and ultimately chose Cable. As one of Cable’s first Transaction Assurance customers, BankProv and Cable worked closely together, addressing issues promptly through continuous communication. Cable provided several key advantages:

• Flexibility and Customization: Cable’s flexibility allowed BankProv to tailor solutions to their specific needs, avoiding the all-or-nothing approach of other platforms. Achman highlighted, “We were looking for fast adoption, uncomplicated user software, and a solution that was easily customizable.”
• Efficient Monitoring and Compliance: Cable offered a more efficient way to monitor transactions and ensure compliance. The platform enabled BankProv to transition from sampling 10% of partner transactions to monitoring 100% in the same amount of time, significantly increasing coverage and assurance. Achman explained, “We went from sampling customer transactions at the rate of about 10% to 100%, and that increased our coverage.”
• Standardized Risk Assessment: Cable's Automated Risk Assessment helped standardize the risk assessment process across all fintech partners, creating a consistent and comprehensive approach. Achman noted, “The risk assessment platform has really been eye-opening to the partners, in what kind of attributes are really important when they assess risk.”‍
• Enhanced Communication: The platform facilitated better communication with fintech partners by creating a more structured and transparent process for risk assessments and compliance monitoring. Achman shared, “The information that we’re getting about the partner programs is definitely more robust than it was in the past. And it really creates a lot of dialogue between the bank and the partner.”

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Increase Transaction Testing Coverage from 10% to 100%

"We went from sampling customer transactions at the rate of about 10% to 100%, and that increased our coverage.” - Paul Achman, Bank Secrecy Act Officer at BankProv

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Benefits

• Regulatory Compliance: The comprehensive documentation and case management features of Cable proved valuable during audits and regulatory exams, demonstrating BankProv’s thorough and thoughtful compliance process. Achman emphasized, “In an examination, you don’t have to explain what you’ve done if you have a case management solution like Cable Transaction Assurance. It’s pretty easy just to turn it over with the work papers and there’s no questions asked.”‍
• Industry Leadership: By adopting an advanced compliance solution, BankProv positioned itself as a leader in the fintech banking space, capable of handling complex and evolving regulatory requirements.

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900% More Transactions in the Same Amount of Time

"That created a lot more comfort for us and our partner transactions. Increasing from that 10% sample to 100%, that output has worked in the same amount of time.” - Paul Achman, Bank Secrecy Act Officer at BankProv

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Conclusion

BankProv’s strategic partnership with Cable showcases the bank’s commitment to innovation and adaptability. By addressing the challenges of increased complexity, stringent regulatory requirements, and the need for efficient compliance and risk management, Cable has enabled BankProv to streamline its operations, improve partner relationships, and ensure regulatory compliance. This underscores the importance of choosing the right technology partners to navigate the complexities of modern banking compliance and regulations.

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“In an examination, you don’t have to explain what you’ve done if you have a case management solution like Cable Transaction Assurance. It’s pretty easy just to turn it over with the work papers and there’s no questions asked.”

Paul Achman

Bank Secrecy Act Officer at BankProv

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Explore the Possibilities with Cable

Ready to enhance your compliance and risk management processes? Discover how Cable can provide tailored solutions to meet your unique needs and elevate your fintech partnerships.

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‍Contact us today to learn how you can achieve the same level of success and peace of mind as BankProv. Compliance can be complex, but Cable can help you automate it.


About BankProv

BankProv is a subsidiary of Provident Bancorp, Inc. (NASDAQ: PVBC). BankProv is a full-service commercial bank headquartered in Massachusetts. With retail branches in the Seacoast Region of Northeastern Massachusetts and New Hampshire, as well as commercial banking offices in the Manchester/Concord market in Central New Hampshire, BankProv delivers a unique combination of traditional banking services and innovative financial solutions to its markets. Founded in Amesbury, Massachusetts in 1828, BankProv holds the honor of being the 10th oldest bank in the nation. The Bank insures 100% of deposits through a combination of insurance provided by the Federal Deposit Insurance Corporation (FDIC) and the Depositors Insurance Fund (DIF). For more information, visit bankprov.com.