For a fintech startup to launch ten years ago, the only way was by partnering with incumbents, as it would have taken months if not years to create their own core banking, obtain their license to operate, build their payments services, comply with regulation.

Cross River Bank is an interesting example; a major line of their business is originating loans for fintechs which are then largely sold to funding sources that the fintech has lined up (such as investors looking for yield in a low interest environment). This gives CRB an interesting cross section of credit risk across the U.S. footprint of their c... See more