Overall, credit unions are aware of the many benefits of fintech. By partnering with fintech firms, credit unions can expand their membership and offer members convenient, top-of-the-line services, but not all fintech firms are the same, especially in regard to risk management. I learned firsthand some pitfalls every potential fintech client should avoid, but before we get to that part, let me share my story.

An Insider Perspective on Fintech and Third-Party Risk Management

About seven years ago, many of my friends and colleagues were leaving their conventional finance, accounting, law and consulting careers to work for technology firms. These firms usually offered high salaries, great benefits, a more casual work atmosphere and, most importantly, innovative opportunities. After nearly two decades working in traditional large banks, I, too, was itching for a change. I soon landed a position as director of third-party risk oversight for a fintech specializing in peer-to-peer lending. It was an exciting time in my career, but fraught with hard lessons, and I developed a unique perspective shaped by my own experiences and those of my peers and colleagues in risk management roles at various fintech firms.