BankRegulatory ScrutinyEst. 2019

Piermont Bank

US · New York, New York · FDIC, NYDFS

Piermont Bank is a Bank based in US (New York, New York), regulated by FDIC, NYDFS. The institution's BaaS program is currently under regulatory scrutiny, launched in 2019.

Piermont Bank supports the following products and services: Accounts, Payments, Lending. The bank serves customers across US.

Notable fintech partners include Treasury Prime, Unit, Wagestream.

Profile
Products Supported
AccountsPaymentsLending
Geographies Served
US
Charter / Regulator
FDIC, NYDFS
API Standards
REST API
Minimum Deal Size
Not publicly disclosed
Year Program Launched
2019
Notable Fintech Partners

Treasury Prime, Unit, Wagestream

Regulatory Actions Summary

FDIC consent order (Feb 2024) — unsafe/unsound banking practices related to internal controls, third-party risk management, BSA/AML compliance; must review all transactions since Sept 2022

Notes

$578M in assets. WARNING: Active FDIC consent order since Feb 2024. CEO Wendy Cai-Lee quoted: 'Every bank that touches BaaS is getting an enforcement action.'

Related Deals (6)
partnership

FDIC Issues Consent Orders to Piermont Bank and Sutton Bank Over BaaS Failures

The FDIC issued consent orders against Piermont Bank and Sutton Bank for compliance failures related to their BaaS partnerships, particularly around Bank Secrecy Act obligations. Sutton Bank, which partners with fintechs including Robinhood, Square, and Upgrade, was required to collect customer data retroactively back to July 2020. The actions signal intensifying regulatory pressure on sponsor banks operating in the BaaS space.

partnership

Piermont Bank Partners with Unit to Simplify Embedded Banking for Fintechs

Piermont Bank and BaaS platform Unit announced a partnership to simplify the launch of embedded banking products for fintechs. The collaboration combines Piermont's digital commercial banking charter with Unit's API-driven platform. New fintech clients were already secured and expected to launch within weeks of the announcement.

product launch

Nerve Launches Neobank for Musicians with Piermont Bank Partnership

Nerve, a neobank built for musicians, launched with Piermont Bank providing FDIC-insured white-label business debit and savings accounts. The platform integrates streaming data and musician networking features, representing a niche embedded finance use case powered by a BaaS bank partnership.

funding

Treasury Prime Raises Series B to Scale BaaS Platform

Treasury Prime, a US-based BaaS platform, announced its Series B funding round on May 12, 2021. The round accompanied the addition of new bank partners including Pacific Western Bank and Piermont Bank. The funding aims to scale Treasury Prime's API-based platform connecting fintechs with partner banks.

partnership

Treasury Prime Partners with Marqeta to Add Card Issuing to BaaS API

Treasury Prime and Marqeta announced a partnership enabling fintechs to access modern card issuing capabilities through Treasury Prime's single BaaS API. The integration launched live with LendingClub Bank and was set to go live with Piermont Bank in March 2021. Challenger, a neobank for employer-sponsored financial services, became the first product built on the combined platform.

partnership

Piermont Bank Partners with Treasury Prime for BaaS Fintech Model

Piermont Bank partnered with Treasury Prime to launch a Banking-as-a-Service model connecting banks and fintechs. The partnership allows fintech companies to embed Piermont's payment and banking solutions via Treasury Prime's APIs. Piermont positioned itself as a true collaborator rather than a 'rent-a-charter' partner, aiming to reduce friction between traditional banks and fintechs.

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