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Compliance Initiatives for Partner Bank and Fintech Card Programs

By PerformLine
August 30, 2021
Compliance Initiatives for Partner Bank and Fintech Card Programs

In the past few years there’s been an increase in fintechs partnering with behind-the-scenes banks in order to issue credit cards to the public. While these partnerships are mutually beneficial, when it comes to regulatory compliance, responsibility is not clear cut.

There are ways however that these two entities can work together to ensure their credit card compliance programs are seamlessly integrated. 

Partner Bank Initiatives

It’s rare that a partner bank has only one fintech-issued credit card partner, and with multiple cards comes increased risk of regulatory scrutiny.  As the partner bank, it’s critical to create an overall compliance program that is repeatable and scalable across all partner card programs. 

Onboarding New Fintech Credit Cards 

When onboarding a new fintech credit card partner, it’s critical to be able to quickly identify all consumer-facing domains where the brand will be mentioned so that monitoring for regulatory compliance can begin at the start of the partnership.  Identifying these domains upfront will decrease the risk of unknown compliance issues further down the road.

Ongoing Monitoring Across the Web and Social Media

Even if all known consumer-facing sites are identified at the beginning of the relationship, ongoing monitoring across the entire web and social media sites is necessary to ensure all terms, conditions, and additional language continues to be in line with your agreed upon, and evolving, set of rules.

Quickly Remediate and Track Non-Compliant Issues 

When non-compliant issues do occur with your fintech partners, it’s important to have a process in place to quickly flag the issue, send remediation notices directly to the non-compliant partners, and track and archive those responses for any future audit situations.

Fintech Initiatives

While there is a multitude of things to think about when launching a new card, there are three immediate initiatives that fintechs can take in order to stay ahead of compliance risks that benefit not only their firm, but also their partner bank.

Proactively review marketing documents and messaging 

New marketing campaigns for credit cards come with new messaging and marketing materials.  Prior to launching these assets externally, have a process in place for automatically reviewing and scoring all marketing materials prior to launch. 

Automate your compliance program to discover non-compliant issues

While you could wait for your partner bank to notify you of non-compliant issues with your credit card brand, implementing a process in which you’re automatically monitoring all areas where your consumer interacts with your brand will decrease the regulatory burden for your partner bank. 

Discover Unknown Domains Where Your Brand Appears

Automatically monitoring domains where you know your brand appears is beneficial, but will leave you with a blind spot when it comes to ensuring complete regulatory compliance.  Have a process in place that will help you discover domains that mention your brand that you were unaware of, so you can proactively monitor and remediate potential issues as necessary. 

A Team Effort

Whether you’re in an existing partnership with a bank or fintech, or are about to start a new initiative, the key to creating and sustaining a scalable and repeatable compliance program is communication.  Having a system in place that allows for this continual loop of monitoring and feedback will allow both institutions to feel in control of regulatory compliance. 

At PerformLine, we know that a strong compliance management system is key to success for any organization. PerformLine’s omni-channel solution was built to automate the monitoring and remediation of regulatory and brand compliance violations, on all internal and partner channels including web, messaging, call-centers, documents, and social media.  Our turn-key industry rulebooks are built on years of experience by working with regulators and industry clients. 

Speak to one of our experts today to learn more about mitigating your risk and ensuring brand safety.

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Tags: Risk Management, Banking, Credit Cards

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