Consumers probably won’t be made whole, and banks have many lessons to learn.

The FBI arrested the CEO of Evolve Bank & Trust on child pornography charges, per Banking Dive, amid the bank’s deep compliance crisis. A spokesperson told Banking Dive that Hartheimer’s role has been terminated. Evolve’s precarious situation, made more so by the sudden departure of its CEO, underscores how weak internal controls and poor partner oversight can ripple through the business. One lesson is clear: Reforming internal culture, board oversight, and fintech-integration strategies are foundational to banks that want to offer these services.

The tie-up can help Affirm’s strategy of building out its debit card to grow its overall payments volume

Banks are experimenting with emerging technologies and business models to find new revenue streams. But stepping outside traditional banking molds introduces more business, reputational, and regulatory risk.