What Fintechs Need to Get Right to Be Truly “Bank‑Ready” in the U.S. Market
For fintechs entering the U.S. market, the conversation often starts with product vision or user experience. But for banks, and increasingly for regulators, the first question is far simpler: Are you operationally ready to be trusted? In a market where demand for sponsor banks outweighs supply, “bank readiness” has become a decisive differentiator.
As I recently discussed on This Week in Fintech, Cross River works with the world’s most sophisticated fintech and enterprise platforms. Here are four lessons on what the strongest fintechs do well.
- Operational discipline must come first
The first signal of readiness is a thoughtful, well‑structured third‑party risk management program. Banks need to understand exactly who their fintech partners rely on, how those vendors are vetted, and how risks are managed. That level of transparency is foundational, not optional.
Clarity around the use case is equally important. Fintechs should know who their customer is, what differentiates their product, and how they plan to acquire and support users at scale. When a team can clearly articulate its target segment, competitive edge, and near‑term roadmap, it becomes far easier for a bank to evaluate both suitability and long‑term potential. Financial stability plays a role here too: audited financials and a credible funding plan signal staying power.
- Compliance works better when it’s tailored
One of the biggest misconceptions is that a three‑tier compliance structure for fintech operations, bank oversight, and independent audit should be applied uniformly. In practice, the strongest programs are those designed around the actual risk profile of the partnership. That starts with understanding who the fintech serves: consumers, SMBs, gig workers, international users, or crypto‑linked segments all come with distinct considerations.
Additionally, fintechs need to demonstrate a fully operational compliance team, with clarity around roles and responsibilities. Who controls onboarding logic? Where does transaction monitoring live? How is data shared and reconciled across systems? These decisions determine how oversight is designed and how effectively it works.
- Money movement transparency is non‑negotiable
Recent BaaS failures underscore a simple truth: ambiguity in funds flow is unacceptable. Clean, reconcilable visibility into customer funds, reserves, and operating balances is now table stakes. Systems must support daily reconciliation and withstand ongoing scrutiny.
Bonus insight: Shared culture accelerates success
While not a strict requirement for bank readiness, the partnerships that achieve the most impact share a common cultural mindset. The fintechs that stand out are collaborative, accountable, and proactive. They anticipate issues, communicate openly, and treat the bank relationship as strategic rather than transactional. That cultural alignment isn’t something regulators mandate, but it often becomes the difference between a functional partnership and a transformative one.
