The latest episode of Fintech Layer Cake featured Erica Khalili, our Chief Legal Risk Officer and cofounder, in a conversation with hosts Reggie Young and Ali Nelson of Lithic. They discussed how today’s Lead came to be and why, our core principles, foundations to a good partnership, the value of financial services to underserved markets, the evolving landscape of sponsor banking, and so much more. Here are some takeaways from the episode:
How today’s Lead came to be and are our core principles
Our cofounders Erica Khalili, Jackie Reses, Homam Maalouf, and Ronak Vyas set out to build the bank partner they wished they had when working on the fintech side, collaborating with banks, and developing Square’s in-house institution from the first line of code to securing a de novo ILC charter.
They envisioned an institution that would meet clients where they are and serve as a true, trusted thought partner. To bring this vision to life, they chose to acquire an existing institution, completing the acquisition of Lead Bank in August 2022.
Today, Lead operates around three core principles to facilitate fintech and digital asset partnerships: technical acumen, legal and compliance expertise, and financial excellence. We have an in-house product and engineering team building the banking infrastructure platform. If our clients are struggling with a risk mitigation strategy, we’ll whiteboard with them to figure it out together. We even dedicated technical and financial resources to re-envisioning the reconciliation process in accounting.
As Erica puts it, “because when we're thinking, we have our partners, we have our local customers in Kansas City who are super important, we have our regulators as clients, we have our investors, we think across all of those domains in terms of what we're building and strive for excellence across everything…”
What we look for in fintech and digital asset partnerships
It’s important that clients take financial services seriously and see their bank as a true partner, not just a vendor. Ideal clients understand the importance of compliance, risk management, and regulatory responsibilities. They’re willing to be transparent, engage in rigorous financial and operational oversight, and work collaboratively to build safe, sustainable products that meet high safety and quality standards.
The value of fintechs in underserved markets
Fintech and digital assets make financial services more accessible and affordable for people who have traditionally been left out of the system. They help local communities by solving real problems—like cutting down expensive remittance fees, speeding up money movement, and giving immigrants better ways to build credit.
For someone trying to send money home or make ends meet between paychecks, these innovations can make a huge difference. That’s why working with the right partners matters—because at the end of the day, it’s about real people and their livelihoods.
That’s just a fraction of what was discussed. To learn more, have a listen to the full episode in the link below.
[00:00] Introduction
[01:30] Square to Lead
[03:20] Lead Bank’s Transformation
[07:50] Challenges During Acquisition
[12:10] Building Infrastructure
[15:00] Client Obsession Philosophy
[18:30] Risk Management
[21:45] Collaboration with Regulators
[25:10] Fintech and Underserved Markets
[30:10] Innovating for Impact
[33:40] What Lead Bank Looks For in Partners
[38:30] Partner Success Stories
[43:00] Lessons from M&A
[45:30] Future Outlook
[48:00] Closing Reflections
