When fintechs consolidate, their risk profiles do too

A consolidation wave is building. When fintechs are acquired, their third-party access agreements, application programming interface (API) connections, and compliance postures come with them. The acquiring institution inherits a risk profile it may never have assessed. That is not a future problem. In a market where small and mid-tier fintechs are actively being evaluated as acquisition targets, it is a present one.