Digital Channels Create Consumer Compliance Struggles for Banks
James Kim, a partner with Troutman Pepper and leader of the firm's Fintech Industry Group, was quoted in the May 30, 2024 FinXTech article, " Digital Channels Create Consumer Compliance Struggles for Banks."
But it can be challenging for a bank to oversee a fintech partnership, says James Kim, a partner at the law firm Troutman Pepper, who leads the fintech practice. A bank's third-party risk management must keep up with the speed and scale of these programs and it might be unclear how to share and delegate compliance duties.
"It takes a lot of time, energy and effort [for a bank to grow]," he says. "These fintech partnerships can be challenging because they involve a combination of exponentially increasing scale and risk, while also moving super fast."