Gilles Gade, Founder and CEO at Cross River Bank, said that when he thinks of 2024, he’s reminded of a quote by the Austrian philosopher Viktor Frankl: “When we are no longer able to change a situation – we are challenged to change ourselves.”
As Gilles Gade of Cross River Bank looks back to 2008 and the founding of Cross River, what began as a “daring philosophy” to challenge the status quo, a mission to provide “greater access” to financial services, and the ambition to make the world “a better place,” has evolved into an enterprise that sits at the heart of modern Fintech, and that aims to “change itself and adapt.
Gade added that over the years, they’ve seen consumer well-being too often overshadowed by “political agendas, special interests, and a relentless thirst for control—factors that can breed inertia rather than progress.”
However, they pointed out that true progress “requires risk, and the key to success lies in identifying and mitigating that risk.”
When they launched, financial technology—or “Fintech”—wasn’t a new concept, but it was undergoing “a rebirth that would forever alter the economic landscape.”
As noted in the update from Cross River, Silicon Valley was doing what it does best: fostering “disruption, innovation, and the disintermediation of banking services.”
Gade also mentioned that a few banks stepped in, each with “different models, product offerings, and capital commitments.”
Cross River saw this as an opportunity “not only to participate but to lead—to help establish the risk management and compliance frameworks that would ensure this new era of finance could endure market changes and stakeholder pressures.”
According to the Cross River Bank executive, the stakes were high then, and they “remain high today.”
They added:
“Without a thoughtful approach, Fintech’s growth could be derailed by political forces, special interests, and misinformation. That’s why Cross River has always championed thoughtful regulation—but regulation that’s risk-based and rooted in logic and commonsense. Such an approach protects consumers and small businesses while encouraging responsible innovation.”
Today, Cross River claims that it is on the “verge of processing their one billionth payment transaction and originating their one hundred millionth consumer loan.”
According to the firm’s management, millions of Americans now “have access to life-changing credit thanks to their efforts.”
The Cross River Bank CEO explained that they achieved all this by “fostering a culture of innovation, dialogue, agility, and respect for diverse ideas.”
As noted in a blog post by Cross River Bank, a few noteworthy highlights from this year:
- Growth in payments: We exceeded 3 million RTP® transactions in September 2024 alone, an extraordinary milestone in providing consumers access to their funds when they need it the most. Total payments transaction volume grew 120% year-over-year (YoY), and our monthly merchant acquiring volume surpassed $10 billion throughout Q3 2024, marking an incredible 2165% YoY increase with continued demand.
- Lending milestones: Our platform lending origination volumes and Fintech banking payments continue to increase quarter-over-quarter, driving strong YoY revenue growth. We’ve served over 100 million consumers with access to credit while ensuring appropriate consumer protection.
- Expanding our product suite: We’ve launched new products and solutions for our partners, including 24/7/365 instant settlement, automated deposit sweeps through IntraFi, and our Partner Experience Initiative. Additionally, we’ve continued developing our tech stack to provide prepaid and cross-border solutions. These efforts ensure our partners can meet consumer needs—when, where, and how they arise.
- Stronger partnerships and market expansion: We deepened key partnerships while launching new collaborations with blue-chip brands. This approach enables us to cross-sell more effectively, retain clients, and continue growing our pipeline with all types of companies looking to embed financial services.
- Commercial lending focus: Our commercial loan book continues to perform well. By tightening our underwriting standards, maintaining our unwavering commitment to credit quality, and leveraging technology, our disciplined risk management approach has positioned us as a leader in sectors where many of our peers are pulling back.
- One stop shop approach: We’ve doubled down on customer success and retention. We continuously enhance our product offerings to cater to our existing clients, thereby becoming more and more entrenched in their corporate lifecycle.
- New ventures: Some of these offerings include the launch of our investment banking arm and advisory services. This expansion positions us to support clients at every stage of their journey with Cross River.
Since their founding, they’ve stayed true to their mission of integrating tech responsibly and challenging the “status quo of where technology can play a role in regulatory compliance.”
Early investments in compliance, regtech, and risk management “are now paying dividends.” Cross River claims.
Although some in the industry face heightened scrutiny, their forward-thinking approach has reportedly helped them “remain ahead of regulatory expectations this year and provide new solutions and a collaborative approach for the BaaS and broader Fintech industries.”
The enforcement-first approach from regulators these past few years has provided them with “valuable lessons and they firmly believe they are stronger because of it.”
According to Cross River, uncertainty is at many times challenging, but the strength and determination of their team, leadership, industry support and some collaborative and proactive lawmakers “has enabled them to weather these challenges, including their consent order; they have emerged stronger.”
Today, they remain optimistic about the “future of regulation.”
The firm’s management noted that a new administration “signals the potential for a more thoughtful, innovation-friendly approach and they are all for it.”
As noted in the update from Cross River Bank, recent developments—like the nomination of key appointees and draft legislation — “suggest that regulators recognize the need for frameworks that foster responsible Fintech, AI, and crypto developments.”
This moment represents an “opportunity for the U.S. to lead on a global stage.”
According to the blog post from Cross River Bank, the Fintech ecosystem has long sought “clear rules for crypto, and AI’s potential to enhance risk controls and consumer access to credit cannot be overstated.”
Their partners and clients look to them for leadership, and they’re ready to deliver, boldly. Gade claims that they’ve committed to playing their part in this transformation and continue to work diligently “behind the scenes to bring stakeholders and visionaries to the same table.”
The Cross River Bank CEO concluded:
“Our mission remains clear and even more urgent: build the financial infrastructure of the future, for all. We’ll continue expanding into new markets, launching new products, and embedding … technology into every aspect of our operations.“