Breaking Out of the Comfort Zone: Strategies for Banking Resilience

In This Episode Consent orders are dropping with increasing frequency. Historically consent orders were viewed as failing grades. It's no surprise that bankers are a breed that don’t respond well to failing grades, it is the credit mentality around loss avoidance that leads to an overly developed risk-mitigation culture. Doing new things, by definition, requires taking on risk at some level. In this episode, Jason Henrichs is joined by guests Gilles Gade, Founder & CEO, Cross River Bank, Phil Goldfeder, CEO, American Fintech Council, Clayton Mitchell, Managing Principal, Fintech, and Mandi Simpson, Partner, Accounting Advisory & Finance Transformation Leader at Crowe as they dive into the critical topic of organizational resilience for banks in the wake of receiving a regulatory consent order. Together they explore how financial institutions can not only comply with regulatory requirements but also use this challenge as an opportunity to strengthen their operations and culture. Read the entire transcript here. Podcast Content: Chapter 1: 00:00 - Introduction: Setting the Stage for Resilience The episode opens with an overview of resilience in the financial world. Hosts introduce key topics, such as navigating regulatory pressures, innovation amid challenges, and how resilience shapes the future of financial services. Chapter 2: 05:30 - Building Technology to Challenge the Status Quo Gils Gade from CrossRiver Bank explains how outdated technology in banking inspired his vision for a tech-forward bank. The discussion dives into how CrossRiver built innovative solutions to replace legacy systems, ultimately serving fintech ecosystems better. Chapter 3: 15:45 - Turning Challenges into Stepping Stones The conversation explores CrossRiver’s encounters with regulatory consent orders and how they used these challenges as opportunities to strengthen compliance and innovate further. Gade emphasizes a philosophy of viewing stumbling blocks as stepping stones. Chapter 4: 28:20 - Minimal Maturity Models for Risk and Compliance Crow’s Mandy Simpson and Clayton Mitchell discuss strategies for balancing growth and risk in banking. They highlight the importance of incremental risk management and dialogue with regulators to build resilience. Chapter 5: 38:15 - Resilience Through Consumer-Centric Design The episode underscores how keeping customers at the center of decision-making helps banks build trust and resilience. CrossRiver’s efforts to address customer pain points through innovative tech and services are highlighted as a model. Chapter 6: 47:10 - Collaboration: Banks, Fintechs, and Regulators Phil Goldfeder from the American FinTech Council shares insights on collaboration between banks, fintechs, and regulators. The focus shifts to aligning regulatory practices with the fast-paced innovation demanded by customers. Chapter 7: 57:45 - Overcoming Regulatory PTSD A candid discussion on how consent orders can lead to "regulatory PTSD" within organizations. The panel explores strategies for fostering innovation while maintaining compliance. Chapter 8: 1:08:30 - Preparing for the Future of Banking The panel reflects on how banks can leverage their experiences to remain competitive and resilient. They emphasize the importance of innovation, risk management, and customer focus as the pillars of a sustainable banking model. Chapter 9: 1:19:00 - Closing Thoughts: Resilience as a Journey The episode concludes with a discussion on how resilience is not just about weathering challenges but thriving through them. The hosts summarize key takeaways and look ahead to the future of resilient banking. Related Content: Episode 562: Hot Takes: Regulatory Headwinds for BaaS Episode 471: Can You Hear Me Now? Regulators Speak Up Episode 560: Killing It: Ohad Samet on Reimagining Debt Collection Bank-Fintech Partnerships, Open Banking and AI...oh my!