From Risk to Reward: Practical Steps for FinTech Collaboration

Payments On Tap Podcast: Season 1 - Episode 1

Episode Summary

In the first episode of Payments on Tap, host Elyssa Morgan sits down with Kevin Johnston, Chief Banking Officer at Braid. They explore how financial institutions can build effective and secure FinTech partnerships, drawing on Kevin’s experience leading payment programs at a community bank and now guiding institutions at Braid.

Kevin shares why true success starts with banks taking control—setting clear roles, aligning management and board oversight, and ensuring operational transparency. He makes the case that most banks already have the core tools for risk management and compliance; what matters is intensifying these practices and applying them to new payment partnerships. Kevin explains how tighter controls benefit both banks and FinTechs, leading to better reporting, stronger relationships, and growth that doesn’t compromise safety.

The conversation moves from practical lessons to actionable strategies, highlighting the need for cross-functional teams and a playbook that supports scalable, compliant integration. This episode helps leaders understand what it takes to professionalize their FinTech programs and unlock new revenue while managing risk.

Be sure to check out the Fintech Integration Leadership Series.

Guest-at-a-glance

Name: Kevin Johnston
What he does: Chief Banking Officer
Company: Braid Technologies, Inc.
Noteworthy: Known for helping banks strengthen payment operations and manage risk during FinTech integration, with hands-on experience in banking, compliance, and payment program design.
Where to find him: https://www.linkedin.com/in/kevin-johnston-2408b125

Key Insights

Board and Management Alignment Drives FinTech Success

Clear alignment between a bank’s board, management, and operational teams is essential for any FinTech partnership to thrive. Success starts with everyone knowing their role and understanding decision rights, from board oversight to day-to-day execution. Strong governance means transparency at every level and active engagement from leadership— not just legal or compliance teams. When management has true ownership and the board demands accountability, ambiguity is replaced by clear responsibility. This structure allows institutions to respond to risk, adapt as new challenges arise, and avoid common pitfalls. Rather than relying on a single payments expert, banks benefit most by building a culture where learning and ownership are shared. This approach not only builds resilience but also positions the bank to grow with confidence in the fast-moving payments landscape.

Strong Bank Control Benefits Both Sides of FinTech Partnerships

When a financial institution keeps direct control over payment operations, both the bank and its FinTech partners benefit. By setting and enforcing clear rules, banks ensure key processes— like customer verification and transaction monitoring— meet compliance and security standards. This level of control prevents partners from changing critical parameters without oversight, which reduces risk for the institution. For FinTechs, strong governance delivers a clear structure to build and scale safely. With defined guardrails and open communication, the partnership can run smoothly and withstand regulatory scrutiny. Rather than slowing down innovation, robust controls make it possible to grow with fewer surprises and setbacks. Both sides gain trust and clarity, turning what could be a source of friction into a foundation for long-term success.

Intensifying Existing Practices Unlocks Scalable Payment Growth

Building a scalable payment program does not mean reinventing the wheel— it means intensifying what banks already do well. Many institutions already manage vendor risk, handle compliance checks, and monitor payments daily. The difference with FinTech partnerships is scale and pace. By taking core practices like due diligence, fraud monitoring, and reporting and applying more rigor, banks can handle greater transaction volumes and new business lines. Early wins come from starting small, tracking key performance indicators beyond revenue, and learning quickly from setbacks. This approach creates the space to experiment, improve, and grow without exposing the institution to unnecessary risk. Over time, intensifying these practices supports growth, builds expertise across teams, and unlocks new revenue streams— all while keeping risk in check.

Check back on Thursday for the next episode of the Payments on Tap podcast!