Fintech

It takes $50 million to $100 million, three to five years of losses and a complete commitment from the board to make it as a banking-as-a-service bank, the CEO of Pathward bank says in the latest American Banker podcast.

"We want to put banks in the risk management driver's seat," says Sima Gandhi, co-founder of the Council for Fintech Ecosystem Standards, which has worked with a group of fintechs to create risk and compliance standards banks can use to evaluate their fintech partners.

Thomas Rudzewick, CEO of Maspeth Federal Savings Bank, worries about the growing crisis of low savings among millennials and Gen Z. He believes banks like his can help reverse this trend with financial literacy and innovative savings tools.

Arvind Purushotham, head of Citi Ventures, shares where he and his team see opportunities and how they vet tech startups.

Petrou, the managing partner at Federal Financial Analytics and a longtime observer of banking and regulation, says banks need to do far more due diligence on potential fintech partners and exert more control over these relationships.

Banking as a service is expensive, it takes time and onboarding has to be done carefully, says the founder of Bancorp Bank, who now runs a venture capital firm that invests in fintechs.