Fed penalizes Evolve Bank for failing to manage fintech partnership risk

WASHINGTON, June 14 - The Federal Reserve announced Friday it had ordered Evolve Bancorp Inc to bolster its risk management programs around fintech partnerships as well as anti-money laundering laws.

It added that the new enforcement action, which did not come with a fine, was independent from bankruptcy proceedings regarding Synapse Financial Technologies, Inc., which the bank had partnered with. "Evolve remains well-capitalized and continues to show strong growth across all business lines," the spokesperson said.

It is still unclear how many people had accounts frozen as a result of Synapse's bankruptcy, but regulators have estimated that it could be as high as tens of thousands.

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