OCC ends enforcement against Patriot Bank

Patriot Bank is no longer under the strict oversight of the Office of the Comptroller of the Currency (OCC). This ends a multi-year formal agreement that forced the bank to overhaul its risk management and compliance programs. For retailers and merchants, this is an important signal that a key player in the 'Banking-as-a-Service' (BaaS) space is returning to stable footing. Patriot Bank is a significant partner for various fintechs and third-party lending platforms that provide consumer financing at the point of sale. The regulatory pressure cost the bank over $5 million in legal and consulting fees. With these restrictions lifted, the bank's leadership expects to significantly lower their operating costs and FDIC fees. This improved financial health typically means a bank can be more aggressive in its lending activities and more reliable for the fintech partners that rely on them for liquidity and regulatory shells. If you use a financing platform that is backed by Patriot Bank, this news suggests your provider's underlying bank partner is now in a much safer regulatory position, reducing the risk of sudden program shutdowns or forced changes to lending criteria.

Source: Banking Dive

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