The Federal Reserve penalizes Evolve Bank for insufficient fintech partnership risk management.

From Investing.com: 2024-06-17 04:31:38

The Federal Reserve has ordered Evolve Bancorp Inc to improve risk management around fintech partnerships and anti-money laundering laws, following a 2023 examination revealing insufficient policies. The enforcement action, not accompanied by fines, is separate from Synapse Financial Technologies, Inc.’s bankruptcy, although it has led to frozen accounts for customers.

Evolve Bancorp assures customers and depositors that the Fed’s order, common in the industry, doesn’t impact their business. Despite Synapse’s bankruptcy and frozen accounts, Evolve remains well-capitalized and sees strong growth. Meanwhile, the bankruptcy case of Synapse reveals an $85 million shortfall between partner banks and depositors.



Read more at Investing.com: Fed penalizes Evolve Bank for failing to manage fintech partnership risk By Reuters