Partnerships between traditional financial institutions and
fintechs to offer customers innovative products and solutions are more
commonplace than ever, but the industry is still learning the potential
regulatory pitfalls that can arise in these types of third-party relationships.
One such partnership between First Northwest Bancorp and a
fintech resulted in an enforcement action with the Federal Deposit Insurance Corp.,
requiring the Port Angeles, Wash.- based bank to undertake a comprehensive
overhaul of its compliance management program.