peekpublishersIn a recent edition of the Fintech Nexus Newsletter, it was reported that Blue Ridge Bank has been deemed to be in a “troubled condition” by the Office of the Comptroller of the Currency (OCC). This comes after the bank received its second regulatory action in less than 18 months. Blue Ridge Bank, a $3.3 billion-asset bank based in Virginia, was an early mover in the Banking-as-a-Service (BaaS) space. The OCC’s consent order, which was issued after an examination in June, identified areas where the bank needs to improve, including its anti-money laundering controls, capital position, and third party management.
Industry expert Jonah Crane commented on the situation, stating that he expects “every bank with a large BaaS program” to face some form of regulatory action in the next year. This news highlights the potential risks for fintech companies that rely on banks for their banking services, emphasizing the need for redundancy in banking partnerships.
