Discover Financial Services
Riverwoods, Illinois
Discover Financial Services came under FDIC scrutiny in 2023, prompting significant corporate governance changes including the departure of CEO Roger Hochschild and the appointment of interim CEO John Owen. The FDIC probe focused on compliance and risk management deficiencies. In response, Discover undertook enhanced risk and compliance efforts across its partnerships. The action reflected broader regulatory attention to large banking institutions' oversight of fintech and partner relationships. The exact scope and formal terms of the FDIC investigation were not fully disclosed publicly, but the leadership upheaval signaled serious regulatory concern.
Verified from source: Discover Financial Services received a proposed consent order from the FDIC relating to its compliance management system. CEO Roger Hochschild departed amid the regulatory scrutiny, with interim CEO John Owen and the company committing to bolstering risk, compliance, and corporate governance efforts, including hiring about 200 compliance officers.
- Signals FDIC willingness to probe large bank-fintech and partnership compliance frameworks
- Leadership changes at major banks under investigation may disrupt existing BaaS and partner relationships
- Banks with significant fintech partnerships should proactively review compliance and risk management programs
- NewsPayments Dive