The regulatory landscape for banks and fintechs is in flux as we approach 2025. In Cable’s recent webinar, Understanding the New Regulatory Climate for Banks and Fintechs, Natasha Vernier (Cable CEO) moderated a conversation with industry experts Sheetal Parikh (Treasury Prime), Euna Kim (Slope), and Amy Whitsel (FS Vector). Together, they explored the evolving environment and provided actionable insights for compliance professionals navigating this period of uncertainty.
2024 was marked by increased regulatory pressure following high-profile collapses like Synapse and Silicon Valley Bank. The FDIC introduced stricter record-keeping requirements for pass-through insurance and proposed new rules on brokered deposits. Regulators emphasized third-party risk management, which caused banks to reassess fintech partnerships.
Amy Whitsel noted the regulators’ enforcement-heavy approach, while Sheetal Parikh highlighted that even highly compliant banks faced pressure, leading to a chilling effect on fintech partnerships. “The Synapse collapse created an anomaly that unfortunately became representative of the space,” Sheetal explained, underlining its ripple effects on the industry.
While changes in leadership at the OCC, FDIC, and CFPB under the Trump administration may alter tone and priorities, Sheetal warned that examiners conducting day-to-day audits will largely remain the same. This suggests that heightened scrutiny, particularly for fintech-bank partnerships, may persist despite potential deregulatory rhetoric.
Amy advised maintaining collaborative relationships with regulators rather than resisting oversight. “Regulatory relationships are built on trust,” she noted, encouraging proactive engagement.
Despite calls to dismantle the CFPB from public figures like Elon Musk, the panel agreed its core functions will remain intact. “Consumer protection enjoys bipartisan support,” said Amy, citing recent milestones like the finalization of Section 1033 on consumer financial data access.
The panel emphasized that data security and privacy regulations, including open banking standards, will continue to gain momentum, aligning with industry demands for stronger safeguards.
The Synapse collapse reignited debates around fintech-specific licensing. Natasha compared the UK’s Electronic Money Institution (EMI) license, which balances innovation and regulatory compliance, to the fragmented U.S. system. While such a license could benefit the industry, Sheetal pointed out resistance from both states and incumbent banks wary of non-bank competitors gaining regulatory parity.
The panel predicted relaxed enforcement for crypto under a new SEC commissioner. This could broaden access to banking services for crypto companies and foster greater innovation in the U.S. market. However, as Euna noted, banking relationships remain critical, and fintechs must maintain trust and transparency with their partners.
Reduced federal oversight could lead to increased state-level activism, creating a more complex regulatory patchwork. States like California and New York are likely to step up enforcement, especially around privacy and money transmission laws, potentially increasing compliance burdens for fintechs.
As Sheetal emphasized, consumer data protection will remain a priority. Banks and fintechs should anticipate heightened scrutiny in this area, even in a deregulatory environment.
Want to dive deeper into the discussion? Watch the full webinar for more insights, practical tips, and expert advice to help you navigate 2025’s evolving regulatory landscape.
As the first automated 2LOD control testing platform, Cable is positioned to help banks and fintechs navigate the evolving landscape. With 100% automated control testing, eliminating manual processes, financial institutions can foster trust with their regulators. With Cable, you can confidently meet regulatory demands while focusing on innovation and growth.
To learn more about how Cable can support your compliance needs, visit Cable’s On Demand Demo Page.
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 ZThe regulatory landscape for banks and fintechs is in flux as we approach 2025. In Cable’s recent webinar, Understanding the New Regulatory Climate for Banks and Fintechs, Natasha Vernier (Cable CEO) moderated a conversation with industry experts Sheetal Parikh (Treasury Prime), Euna Kim (Slope), and Amy Whitsel (FS Vector). Together, they explored the evolving environment and provided actionable insights for compliance professionals navigating this period of uncertainty.
2024 was marked by increased regulatory pressure following high-profile collapses like Synapse and Silicon Valley Bank. The FDIC introduced stricter record-keeping requirements for pass-through insurance and proposed new rules on brokered deposits. Regulators emphasized third-party risk management, which caused banks to reassess fintech partnerships.
Amy Whitsel noted the regulators’ enforcement-heavy approach, while Sheetal Parikh highlighted that even highly compliant banks faced pressure, leading to a chilling effect on fintech partnerships. “The Synapse collapse created an anomaly that unfortunately became representative of the space,” Sheetal explained, underlining its ripple effects on the industry.
While changes in leadership at the OCC, FDIC, and CFPB under the Trump administration may alter tone and priorities, Sheetal warned that examiners conducting day-to-day audits will largely remain the same. This suggests that heightened scrutiny, particularly for fintech-bank partnerships, may persist despite potential deregulatory rhetoric.
Amy advised maintaining collaborative relationships with regulators rather than resisting oversight. “Regulatory relationships are built on trust,” she noted, encouraging proactive engagement.
Despite calls to dismantle the CFPB from public figures like Elon Musk, the panel agreed its core functions will remain intact. “Consumer protection enjoys bipartisan support,” said Amy, citing recent milestones like the finalization of Section 1033 on consumer financial data access.
The panel emphasized that data security and privacy regulations, including open banking standards, will continue to gain momentum, aligning with industry demands for stronger safeguards.
The Synapse collapse reignited debates around fintech-specific licensing. Natasha compared the UK’s Electronic Money Institution (EMI) license, which balances innovation and regulatory compliance, to the fragmented U.S. system. While such a license could benefit the industry, Sheetal pointed out resistance from both states and incumbent banks wary of non-bank competitors gaining regulatory parity.
The panel predicted relaxed enforcement for crypto under a new SEC commissioner. This could broaden access to banking services for crypto companies and foster greater innovation in the U.S. market. However, as Euna noted, banking relationships remain critical, and fintechs must maintain trust and transparency with their partners.
Reduced federal oversight could lead to increased state-level activism, creating a more complex regulatory patchwork. States like California and New York are likely to step up enforcement, especially around privacy and money transmission laws, potentially increasing compliance burdens for fintechs.
As Sheetal emphasized, consumer data protection will remain a priority. Banks and fintechs should anticipate heightened scrutiny in this area, even in a deregulatory environment.
Want to dive deeper into the discussion? Watch the full webinar for more insights, practical tips, and expert advice to help you navigate 2025’s evolving regulatory landscape.
As the first automated 2LOD control testing platform, Cable is positioned to help banks and fintechs navigate the evolving landscape. With 100% automated control testing, eliminating manual processes, financial institutions can foster trust with their regulators. With Cable, you can confidently meet regulatory demands while focusing on innovation and growth.
To learn more about how Cable can support your compliance needs, visit Cable’s On Demand Demo Page.
