In recent years, there has been a significant migration by consumers and businesses away from traditional brick and mortar institutions to more digitally focused channels for payments and banking-related services. This has generated significant opportunities for the Fintech market to flourish. Fintechs that are not already banks need access to the banking system. Wilmington, DE-based company, The Bancorp is dedicated to serving the unique needs of non-bank financial service companies, ranging from entrepreneurial start-ups to those on the Fortune 500, enabling them to provide more of their services in a digital and real-time manner. “Over the course of the last 13 years, we have continued to be responsive to the needs of the evolving way in which people and companies transact and we have supported the development of products to serve those needs,” says Ryan Harris, EVP and Head of Payment Partnerships, The Bancorp.
The Bancorp has embraced and gone all-in on the sponsor-bank role it plays. The company’s value proposition is its experience that enables mid-market firmsto scale without having to build out the entire risk management and compliance infrastructure required by a traditional bank. This allows the company to work with more innovative, earlier stage firms to bring their ideas to market. “We create a synergistic relationship where our clients don’t have to expend their capital and investment to become a bank. Instead, we enable them to put their capital to use by innovating around new products and services,” says Harris. Being an early entrant and growing into the largest sponsor-bank for prepaid and debit payment card products in the U.S., The Bancorp is constantly working toward becoming the industry standard. “Given our market-leading position, our clients and regulators expect us to be the gold standard from an operations and compliance standpoint. We work every day to continue to meet that expectation,” he adds.
Another aspect that truly differentiates The Bancorp from the rest is the company’s commitment to enabling innovation and dedication to the needs of its clients. Traditionally, bank risk management professionals are risk-averse and because of this, innovation is often met with resistance and trepidation within most organizations.
Given our market-leading position, our clients and regulators expect us to be the gold standard from an operations and compliance standpoint. We work every day to continue to meet that expectation
However, at The Bancorp, it has become a prerequisite that risk management professionals understand and support creative thinking to deliver value to clients. “We have created a culture where everyone understands that ‘NO’ is not an acceptable first answer. In most instances, we can always get to ‘YES’, just with the right controls in place,” remarks Harris. To that end, the company has invested well over $50mm in upgrading both its technical environment and talent to support growth into the future. “Our culture of enabling innovation in a compliant manner is one of our biggest differentiators. Our partners want a bank who understands the risks associated with their products and puts proper controls in place, so they are able to grow in a seamless manner,” he adds.
When it comes to innovation, The Bancorp stays focused on being responsive to its customers’ current needs, tries to anticipate their future needs, and how those needs may affect internal platforms. Notably, the company’s internal platforms are built to be flexible, responsive, and scalable so innovation can happen on the product level instead of requiring massive changes to internal platforms.
With ever-growing Fintech needs, The Bancorp continuously evaluates where the market is headed in terms of emerging payments in order to make a significant investment in its core platform to be able to support all of the various faster payments transaction types. “We don’t have a crystal ball to tell us which faster payments transaction types will emerge as the winners in five years, but either way, by mid-2021, we will have made the necessary investments in our core platforms to support them all, and with significant scalability,” says Harris.