Solo Pilots Bank-Fintech Compliance Data Network

Banks and fintech companies often repeat know-your-customer and know-your-business checks on the same clients, adding cost and friction to compliance. Solo Network is developing a shared framework that allows participating institutions to rely on completed KYC and KYB reviews. The model could also give sponsor banks greater visibility into whether their fintech partners meet regulatory requirements, reducing exposure to compliance failures and potential penalties.

Solo Network has launched a pilot to test the exchange of customer due-diligence results between banks and fintech firms. The report did not disclose the pilot’s launch date, the number of participating institutions, any transaction value or projected savings. The U.S. Treasury Department is closely watching the network’s development, making the government’s eventual stance an important factor in whether the data-sharing model can gain broader industry adoption.