How Banks Are Tackling Compliance, Fintech Partnerships, and AI Oversight: Insights from the Q3 Roundtable
The Q3 Banking Roundtable brought together compliance leaders, legal experts, and bankers to discuss today’s most pressing challenges. From keeping pace with regulatory change to addressing the growing role of AI, participants shared valuable perspectives on how institutions can stay compliant and customer-focused in an evolving environment.
Our Subject Matter Expert for the discussion was Courtney Hayden, Counsel at Goodwin Proctor LLP who specializes in the defense of financial services companies that are dealing with complex litigation matters involving federal and state consumer lending laws and she advises fintech companies on consumer financial regulations, banking laws and compliance and other transactional matters.
Below are the major themes and actionable takeaways from the conversation.
Top Compliance Challenges Facing Banks
Keeping Up with Regulatory Changes
Shifting regulations remain the top concern. Institutions agreed that compliance programs must stay strong regardless of political changes or temporary rollbacks. With enforcement actions often looking back several years, “taking your foot off the gas” creates unnecessary risk.
Technology and Financial Crime
Adopting new technologies while mitigating financial crime risks is a constant balancing act. Institutions noted that innovation must be paired with controls that protect consumers.
The Complexities of Fintech Partnerships
Third-Party and Vendor Oversight
Managing relationships with fintechs—and their vendors—was a recurring theme. Institutions are feeling pressure from both federal and state regulators to prove they have adequate oversight.
“You need to be doing things right by the customer and you need to be providing information, clear, concise, accurate, valid, and say what you do. Don’t hide things!”
State vs. Federal Enforcement
States like New York and California are increasingly active in enforcement, adding complexity to the regulatory picture. Institutions flagged the burden of overlapping or conflicting state requirements.
Artificial Intelligence: Opportunities and Risks
Developing AI Policies
Banks are at varying stages of AI adoption. Larger institutions are building detailed governance frameworks, while smaller banks are starting with approval policies. Regardless of size, participants agreed on the need for oversight, due diligence, and accuracy controls.
Compliance Use Cases
Participants discussed AI use cases such as chatbots, policy drafting, HR screening, and credit decisioning. Concerns included bias, accuracy, and vendor accountability.
“If you use AI, you better make sure it’s accurate because we don’t need the wrong information going out there. You’re then advising everybody in the bank the wrong thing and then your controls could be off.”
Enforcement Risks and State Activity
Expanding State-Level Oversight
Institutions reported increased scrutiny in New York, California, Texas, and Michigan, along with fast-moving state privacy laws.
Vendor Liability
Financial institutions can be held liable for vendor conduct, including bias in lending or marketing.
The Importance of Maintaining Strong Compliance Programs
Avoiding Complacency
Participants emphasized that compliance must remain consistent—even if regulations are rolled back temporarily. Exams often reach back several years, so today’s actions can determine tomorrow’s risks.
Leadership Buy-In
Senior management support is essential. Institutions that treat compliance as a “cost avoidance center” rather than a cost center are better positioned to adapt and grow.
Final Thoughts
Compliance leaders must balance innovation with accountability. Whether managing fintech relationships, developing AI oversight frameworks, or staying ahead of evolving state regulations, one thing is clear: regulators—and consumers—expect consistent, transparent, and customer-first practices.
How PerformLine Can Help
PerformLine equips financial institutions with the tools to meet those expectations, close compliance gaps, and protect both their organizations and consumers.
Our platform helps compliance teams:
- Proactive Risk Management: Implement comprehensive monitoring across all marketing channels to identify potential risks.
- Compliance Assurance: Quickly detect and address any disclosure gaps or misleading claims to prevent enforcement actions or litigation.
- Streamlined Third-Party Oversight: Discover and track affiliate and partner content to effectively manage third-party relationships.
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