Navigating compliance in today’s financial landscape is not just a necessity; it’s an opportunity for growth, trust, and a distinct edge over the competition. At a recent panel titled “Compliance as a Competitive Advantage,” I joined a group of industry leaders to dig into what it really takes to set up successful embedded finance programs. Alongside Richard Scioli, GM of Global Fintech at Alloy; Sheetal Parikh, Chief Compliance Officer at Treasury Prime; and Will Lawrence, CEO of Greenlite, we discussed some of the biggest challenges and opportunities banks and fintechs face today.
As CEO of Cable, an automated compliance testing platform, I believe compliance shouldn’t be about doing the bare minimum to keep regulators happy. Instead, it’s a strategic tool—one that can set institutions apart. Here are some of the key takeaways from our discussion, and why they’re so essential for banks and fintechs in embedded finance.
Compliance is the backbone of any responsible bank-fintech partnership. Banks, now more than ever, are assuming responsibility for transaction monitoring and compliance processes previously handled by fintech partners. I highlighted how proactive collaboration with regulators—and working closely with compliance partners—allows banks to set the bar for the rest of the industry. Compliance isn’t something to “check off” once; it’s the core of sustainable, responsible growth.
One major shift I’ve seen is that fintechs are hiring seasoned compliance officers and building robust, bank-grade compliance frameworks. This wasn’t always the case, and it’s something I can’t emphasize enough. I’m firm in my belief that if you’re a fintech founder, compliance knowledge is just as important as your product or tech expertise. It’s a responsibility to your customers and your bank partners. Banking is compliance—it begins and ends there. If a fintech isn’t ready to understand this, it’s simply not ready to partner with a bank.
I was glad to see we all agreed on the importance of regulatory engagement. Sheetal Parikh highlighted how essential it is for banks and fintechs to educate regulators about the positive impacts of well-managed partnerships. Through proactive communication, we can avoid knee-jerk regulatory reactions and support fair, thoughtful standards. Organizations like FS Vector are helping build this framework, and it’s something I believe the whole industry should rally behind.
One of the biggest challenges in compliance is data transparency—something we see daily at Cable. Banks need immediate access to their customer data, and as I pointed out, a big part of managing compliance in a bank-fintech partnership is establishing clear data ownership and responsibilities from the start. This alignment ensures that if regulators come knocking, both parties are prepared to respond confidently. Data transparency isn’t optional; it’s a crucial part of keeping banks and fintechs compliant and building trust with regulators.
A recurring issue we see in fintech partnerships is unrealistic compliance expectations. Will Lawrence made an excellent point about the dangers of overcommitting on compliance standards. Banks and fintechs both need to set achievable goals that reflect the regulatory realities we face. From day one, fintech founders should deeply understand compliance as they scale and evolve. This mindset builds credibility and trust—a win-win for banks and fintechs.
On the “build vs. buy” debate, I made the case that banks are better off buying rather than building compliance solutions. Banks should focus on their strengths in banking and rely on expert partners for their compliance needs. Will offered a contrarian view, suggesting that AI and low-code solutions could make building in-house solutions more feasible. While I respect his perspective, I believe that compliance tech partners like Cable, Greenlite, Treasury Prime, and Alloy bring proven value and specialized expertise that banks can’t easily replicate in-house.
I also encouraged banks to be thoughtful and diversified in their fintech partnerships. Too often, banks follow venture capital trends instead of focusing on sustainable, profitable fintech relationships. Embedded finance isn’t just about trendy consumer apps—it’s about partnering with companies that provide lasting value and are built to last. This diversification doesn’t just protect banks; it strengthens their entire embedded finance ecosystem.
Despite the regulatory challenges, this is actually a great time for banks to engage in fintech partnerships. As Richard Scioli pointed out, these programs generate substantial revenue while providing access to deposits and new customer bases. Will Lawrence added a quote I love: “Scrutiny is the cost of relevance.” As regulators sharpen their focus on fintech partnerships, it’s a testament to the significance of embedded finance. This scrutiny is helping the industry establish clearer guidelines, and it’s driving banks and fintechs to up their game.
For banks and fintechs, compliance is no longer just about risk management; it’s an opportunity to innovate and lead in financial services. Banking as a service (BaaS) isn’t right for every bank, but if you’re not pursuing fintech partnerships, you have to innovate in other ways. As I see it, the banks that embrace compliance as a competitive advantage and invest in proactive, transparent practices are the ones that will succeed.
This panel reinforced my belief that compliance isn’t a burden—it’s an asset. For banks and fintechs that want to grow, compliance is a key part of the strategy that not only keeps you aligned with regulators but also builds lasting trust with customers and partners. By proactively investing in compliance, engaging with regulators, and ensuring data transparency, we can create a more resilient, responsible financial ecosystem. Check out the full panel below and If you have questions or would like to learn more about how compliance can be a competitive advantage for your institution, I’d love to hear from you. Please don’t hesitate to reach out through our Contact Us form, and let’s keep the conversation going!
How Grasshopper Bank Saved 50+ Hours per Fintech Partner with Cable’s Automated Compliance Testing.png)
Why Fintechs Need 24/7 Automated Compliance Testing.png)
Expanding Compliance Testing: New Modules for Reg E, Reg B, and Reg ZNavigating compliance in today’s financial landscape is not just a necessity; it’s an opportunity for growth, trust, and a distinct edge over the competition. At a recent panel titled “Compliance as a Competitive Advantage,” I joined a group of industry leaders to dig into what it really takes to set up successful embedded finance programs. Alongside Richard Scioli, GM of Global Fintech at Alloy; Sheetal Parikh, Chief Compliance Officer at Treasury Prime; and Will Lawrence, CEO of Greenlite, we discussed some of the biggest challenges and opportunities banks and fintechs face today.
As CEO of Cable, an automated compliance testing platform, I believe compliance shouldn’t be about doing the bare minimum to keep regulators happy. Instead, it’s a strategic tool—one that can set institutions apart. Here are some of the key takeaways from our discussion, and why they’re so essential for banks and fintechs in embedded finance.
Compliance is the backbone of any responsible bank-fintech partnership. Banks, now more than ever, are assuming responsibility for transaction monitoring and compliance processes previously handled by fintech partners. I highlighted how proactive collaboration with regulators—and working closely with compliance partners—allows banks to set the bar for the rest of the industry. Compliance isn’t something to “check off” once; it’s the core of sustainable, responsible growth.
One major shift I’ve seen is that fintechs are hiring seasoned compliance officers and building robust, bank-grade compliance frameworks. This wasn’t always the case, and it’s something I can’t emphasize enough. I’m firm in my belief that if you’re a fintech founder, compliance knowledge is just as important as your product or tech expertise. It’s a responsibility to your customers and your bank partners. Banking is compliance—it begins and ends there. If a fintech isn’t ready to understand this, it’s simply not ready to partner with a bank.
I was glad to see we all agreed on the importance of regulatory engagement. Sheetal Parikh highlighted how essential it is for banks and fintechs to educate regulators about the positive impacts of well-managed partnerships. Through proactive communication, we can avoid knee-jerk regulatory reactions and support fair, thoughtful standards. Organizations like FS Vector are helping build this framework, and it’s something I believe the whole industry should rally behind.
One of the biggest challenges in compliance is data transparency—something we see daily at Cable. Banks need immediate access to their customer data, and as I pointed out, a big part of managing compliance in a bank-fintech partnership is establishing clear data ownership and responsibilities from the start. This alignment ensures that if regulators come knocking, both parties are prepared to respond confidently. Data transparency isn’t optional; it’s a crucial part of keeping banks and fintechs compliant and building trust with regulators.
A recurring issue we see in fintech partnerships is unrealistic compliance expectations. Will Lawrence made an excellent point about the dangers of overcommitting on compliance standards. Banks and fintechs both need to set achievable goals that reflect the regulatory realities we face. From day one, fintech founders should deeply understand compliance as they scale and evolve. This mindset builds credibility and trust—a win-win for banks and fintechs.
On the “build vs. buy” debate, I made the case that banks are better off buying rather than building compliance solutions. Banks should focus on their strengths in banking and rely on expert partners for their compliance needs. Will offered a contrarian view, suggesting that AI and low-code solutions could make building in-house solutions more feasible. While I respect his perspective, I believe that compliance tech partners like Cable, Greenlite, Treasury Prime, and Alloy bring proven value and specialized expertise that banks can’t easily replicate in-house.
I also encouraged banks to be thoughtful and diversified in their fintech partnerships. Too often, banks follow venture capital trends instead of focusing on sustainable, profitable fintech relationships. Embedded finance isn’t just about trendy consumer apps—it’s about partnering with companies that provide lasting value and are built to last. This diversification doesn’t just protect banks; it strengthens their entire embedded finance ecosystem.
Despite the regulatory challenges, this is actually a great time for banks to engage in fintech partnerships. As Richard Scioli pointed out, these programs generate substantial revenue while providing access to deposits and new customer bases. Will Lawrence added a quote I love: “Scrutiny is the cost of relevance.” As regulators sharpen their focus on fintech partnerships, it’s a testament to the significance of embedded finance. This scrutiny is helping the industry establish clearer guidelines, and it’s driving banks and fintechs to up their game.
For banks and fintechs, compliance is no longer just about risk management; it’s an opportunity to innovate and lead in financial services. Banking as a service (BaaS) isn’t right for every bank, but if you’re not pursuing fintech partnerships, you have to innovate in other ways. As I see it, the banks that embrace compliance as a competitive advantage and invest in proactive, transparent practices are the ones that will succeed.
This panel reinforced my belief that compliance isn’t a burden—it’s an asset. For banks and fintechs that want to grow, compliance is a key part of the strategy that not only keeps you aligned with regulators but also builds lasting trust with customers and partners. By proactively investing in compliance, engaging with regulators, and ensuring data transparency, we can create a more resilient, responsible financial ecosystem. Check out the full panel below and If you have questions or would like to learn more about how compliance can be a competitive advantage for your institution, I’d love to hear from you. Please don’t hesitate to reach out through our Contact Us form, and let’s keep the conversation going!
