My thoughts on the reporting from last weekend

Last weekend, a private letter that I wrote to our bank partner was reported on. This letter, intended to be a candid exchange of thoughts, was never meant for public eyes. While I understand the interest, it’s important to acknowledge that confidentiality is a customary and essential part of such discussions.

Some context

On September 27, 2023, we sent the letter to our bank partner addressing concerns that had arisen in our ongoing discussions. The purpose of this letter was two-fold. First, it aimed to provide a clear articulation of our stance on certain matters. Second, it served as a bridge to foster collaborative efforts, with the shared objective of finding productive resolutions.

Within this private conversation, we brought forth several concerns:

1. Bank Charges: We highlighted instances of charges appearing on customer GLs, which, by our understanding, should not have occurred. We asked for explanations, remedies, and urged our partner to initiate an investigation into these matters.
2. Underpayments: We discussed instances of underpayments, underscoring the need for prompt and fair resolutions to these discrepancies.
3. Rebate Revenue Withholding: We delved into the matter of revenue withholding. We firmly believe that this issue has not only impacted our partnership but has also had adverse effects on our valued fintech customers.
4. Reconciliation Challenges: We laid bare the challenges we’ve faced in the reconciliation process and our need for response and resolution to open processing incidents and data feed requests. These are crucial issues for us to conduct effective reconciliations. To clarify, our concern is not that this has simply been a challenge. It is that, in addition to this being a challenge, we were stressing the need for increased attention and resources.

A Side Note on Reconciliation Challenges: It’s important to note that reconciliations at the GL level present significant complexities. Most legacy core banking systems often lack the granularity of data needed for such reconciliations.

Towards Resolution and Mutual Benefit

I want to emphasize that we intend to actively and productively collaborate with our partner to resolve all the issues mentioned in the letter. Our goal is clear: to ensure the well-being of end-user customers, our fintech partners and to find solutions that serve both parties and uphold the commitments made within our partnership.

As things stand today, there isn’t much more to add to the ongoing discourse. Our unwavering focus remains on transparently and diligently addressing these concerns, while continuing to serve our customers. We are committed to working together with our partner towards a resolution that is mutually advantageous.

In the world of fintech, challenges are inevitable, but our commitment to our mission remains. I have full faith that we will navigate these challenges and continue to innovate and grow, serving our customers and partners with dedication and integrity.