Risk management platform Cable has launched a partnership with Texas-based Vantage Bank.
The collaboration, announced Monday (July 29), is designed to help Vantage improve its compliance and risk management as it expands its FinTech program and partnerships.
“Embedded banking is under intense scrutiny from regulators,” said Natasha Vernier, Cable’s chief executive. “Vantage Bank is incredibly smart to get ahead of that scrutiny by building a best-in-class compliance program right at the outset.”
According to the release, Cable’s platform will let Vantage automatically monitor 100% of accounts, thus eliminating manual testing and ensuring comprehensive control monitoring as their business scales, without adding staff, to keep on top of regulatory compliance and control over financial crime risks.
“Vantage believes there is tremendous opportunity to grow and diversify our customer base by leveraging embedded banking,” said Jeff Sinnott, president and CEO of Vantage Bank. “This opportunity requires that we have a robust risk management program and strong controls to ensure regulatory compliance. Vantage Bank believes Cable is the best platform to help manage our risk and compliance for our embedded banking program.”
As PYMNTS wrote last week, the rise of embedded finance has begun pushing banks to adapt or risk being outpaced by rivals from the Big Tech and FinTech sectors.
A recent PYMNTS Intelligence report, “Embedded Finance and BaaS: From Marketing Buzz to Banking Bedrock,” done in collaboration with NCR Voyix, shows that the integration of application programming interfaces (APIs) is transforming financial services by embedding them into daily digital interactions.
With 41% of financial institutions adopting embedded finance solutions and 48% enhancing their banking-as-a-service (BaaS) capabilities, banks are responding to digital demands and competitive pressures. Despite this progress, challenges such as outdated systems, regulatory hurdles, and security risks remain barriers.
“Despite the potential, only 79% of global banks foresee banking becoming deeply integrated into daily activities, indicating that many are still in the initial stages of adopting these technologies,” PYMNTS wrote. “Issues such as legacy systems, fragmented technological infrastructure, and evolving regulatory requirements can slow progress.”
The increasing adoption of these technologies, that report continued, reflects a wider shift in the industry toward more agile and integrated financial services, setting up banks to better compete with emerging digital and FinTech players.
