Some banks are making a Faustian bargain with fintechs: Karen Petrou

Karen Petrou, managing partner at Federal Financial Analytics, discusses the intricate dance between banks and fintechs. She warns that inadequate due diligence can lead banks into risky partnerships. Petrou highlights concerns regarding consumer awareness of fund safety and the importance of rigorous compliance with regulations. She advocates for stronger oversight in these collaborations to prevent financial discrepancies and safeguard customer interests. The conversation sheds light on the essential balance between innovation and risk management in banking today.