A fintech partnership bank in New York found itself under serious regulatory scrutiny. Because of its unique Banking-as-a-Service (BaaS) model, the institution needed stronger risk management to avoid sanctions and preserve its reputation among both consumers and industry partners.
With regulatory deadlines looming, the bank turned to Madison-Davis for help in finding a capable Chief Risk Officer (CRO) who could step in quickly, address compliance gaps, and maintain a physical presence in New York.
The Challenge
Blending traditional banking practices with fintech innovation can be a risky juggling act, especially under strict oversight. The bank lacked a robust risk framework and was at risk of fines or worse if they failed to meet regulators’ expectations.
They wanted someone who understood consumer banking rules, knew how to interface with government agencies, and could nurture the fintech side of the business without sacrificing compliance.
Yet, finding an onsite CRO in New York with that specific blend of regulatory, consumer protection, and fintech expertise proved challenging. Time was critical, and leadership needed to feel confident about whomever they hired.
Our Process
Despite the urgency, we took a measured approach to ensure we found a true fit. Our steps included:
Targeted Mapping: We prioritized professionals who had not only a fintech background, but also hands-on experience in traditional banking — particularly in consumer-facing roles.
Geographical Screening: The position required onsite work in New York, so our candidate search centered on those willing to relocate or currently living locally.
Candidate Vetting: Several finalists didn’t meet the precise criteria or withdrew due to the tight requirements. Ultimately, we pinpointed a standout candidate who fully aligned with both the skill set and cultural needs.
Negotiated Offer: While our dedication to our client remains a top priority, we also wanted the new CRO to be compensated fairly. We successfully negotiated a tailored package to accommodate the candidate’s needs, salary range, and work preferences, while ensuring overall fit with our client’s culture and keeping with their budget.
Outcome
With our support, the bank onboarded a CRO who combined technical expertise in finance, a deep understanding of fintech, and a natural grasp of regulatory demands.
Almost immediately, the new CRO solidified partnerships with key regulators, effectively reducing the threat of sanctions.
In under a year, they also expanded the risk department by bringing on specialists capable of handling more advanced oversight and consumer protection measures.
Impact
By strengthening risk and compliance, the bank sidestepped immediate regulatory penalties and also renewed its credibility in the fintech sector.
Freed from the constant worry of breaching regulations, the institution grew its partnerships, raised internal morale, and significantly improved how it safeguards consumer interests.
This momentum has allowed it to scale more confidently, making the most of both its banking roots and its fintech aspirations.
If you’re facing similar challenges in risk management, compliance, or need top-tier talent for your financial services team, contact Madison-Davis today.