Fintech Layer Cake Crash Course in Sponsor Bank MSAs with Andrew Grant
Oct 17, 2024
Andrew Grant, co-founder of The Runway Group, brings over 15 years of experience helping fintechs and financial institutions solve complex problems. He dives into the intricacies of Master Services Agreements (MSAs), simplifying their structure for non-lawyers. The discussion highlights the importance of clearly defined roles in fintech-bank partnerships and the need for effective communication to avoid compliance issues. Andrew also covers the evolving dynamics of indemnification clauses under regulatory scrutiny, making it essential listening for fintech founders.
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Distinguish Term Sheet Vs MSA
- Use the term sheet to identify deal breakers early in negotiations.
- Save detailed operational and compliance obligations for the MSA to ensure efficient progress.
Accurate Product Description Matters
- Accurate product description in MSAs is critical and often overlooked.
- Product definition affects all downstream obligations and regulatory compliance.
Clarify Roles and Responsibilities
- Clear roles and responsibilities prevent misalignment and enforcement actions.
- Fintechs must manage obligations like disclosures and marketing approval effectively.