CORRECTED: Regulatory Setbacks for Fintech-Friendly Banks

New reg orders against Blue Ridge Bank and Choice Financial show that federal and state agencies are continuing to monitor (and enforce) banks' third-party relationships

Happy Friday Bank Slaters!

I wanted to take a moment to send out an email drawing attention to two regulatory orders that were disclosed in the last 24 hours. They indicate that regulatory scrutiny of fintech-friendly banks, especially Banking-as-a-Service sponsors, will significantly increase in 2024.

First, let’s look at the orders and what regulators hope to accomplish by issuing them.