Nelson Mullins partners Brad Rustin, B.T. Atkinson, and Randy Saunders will present a session titled "Bank-Model Partnerships: The New Banking Model for 2020 and Beyond" at the WV Bankers and Ohio Bankers League Joint Convention in July. 

In November 2019, both the OCC and FDIC issued proposed rules to clarify the “valid when made” doctrine and push back against recent state actions to limit Bank/non-Bank partnerships. For some time, nationally-chartered and state-chartered banks collaborated with non-bank lenders, FinTechs, and loan marketplaces. These banks experienced exponential growth in deposits, loans, and non-interest income through these innovative partnerships while driving customer adoption and customer engagement. Of the 10 largest FinTechs in the United States, 80% now operate through bank partnerships. This recent guidance paves the way for greater protections for banks participating in this sector and provides a unique opportunity for Ohio and West Virginia banks to grow. However, with this reward comes significant financial, strategic, reputational, credit, and compliance risks. In this session, Rustin, Atkinson and Saunders will provide guidance and insight regarding these opportunities, the legal structures that drive the relationship, key board and management considerations, and the risks inherent in this new space. Having created dozens of bank/FinTech partnerships, these two will focus on real-life experience with these structures and the pitfalls that they have addressed with state and federal regulators.