SPONSOR BANKS: WHAT CAN YOU DO TO INSTILL A CULTURE OF COMPLIANCE IN YOUR FINTECH PARTNERS IN 2026?

While compliance officers working at financial technology (fintech) companies are generally known to complain about their issues with firm leadership, which often sees their function as a nonproductive hurdle to company growth, it is incumbent upon sponsor banks to aid their fintech partners in creating a culture of compliance, as a risk reduction measure.

Yes, we are well aware that fintechs, whose leaders don't come from the banking sector, and have no history of working with compliance, often place commercial pressures upon their compliance team, to facilitate the success of the company, and compliance officers therefore walk a narrow tightrope, sponsor banks must foster the development of an effective AML compliance program. This might mean contributing software that will assist with customer identification procedures and transaction monitoring, as well as conducting training to upgrade the skillsets of fintech compliance officers.

Sponsor bank compliance officers, who themselves often feel unappreciated by their leaders, have a special duty to assist their fintech compliance brethren in navigating the commercial realities that they face, while striving to always continuously upgrade their compliance effectiveness, through direct assistance, journeying to the fintechs' offices, to suggest solutions and workarounds. Give the fintech compliance officers the tools they need to do their jobs, and if necessary, train them on how to use them.