Case Study – Deposit Operations Background FinTech Company X is an established digital asset exchange, experiencing rapid growth, and expanding its
footprint within the financial services industry. To do so, it is creating a de novo banking operation through its Bank X subsidiary. Bank X will offer basic
online/mobile banking and payments, with seamless connectivity to the Company’s existing digital asset exchange, and to the Bank’s new suite of financial
services for digital assets, equities, FX, and other instruments (e.g., safekeeping/custody, brokerage/trading, investment products, customer-directed
transfers/lending, trust/retirement accounts, etc.). In support of these customer offerings, Bank X will interface with traditional banking platforms, third-party
financial service providers, the new class of digital asset networks, and internal infrastructure across the enterprise, acting as the bridge between them with
coordinated underlying operations.
Challenge #1 Regulation is an important aspect of banking. The list of applicable regulations includes, but is not limited to Reg D, E, CC, DD as well as rules
for ACH and wires. Please 1) tell us of your knowledge of and experience with these regulations, 2) how they apply to Bank X, and 3) what Bank X needs to do
to be compliant?
Challenge #2 At this early startup phase of Bank X, there are a lot of projects to manage and contribute to. Technologists and engineers are looking to you as
the deposit products expert.
How do you 1) manage your time effectively, 2) communicate the necessary information to key stakeholders, and 3) ensure that regulations are followed
correctly?
Challenge #3 What challenges does a startup bank face in the current and potential future environment?