Business View Magazine | Volume 8, Issue 12

80 BUSINESS VIEW MAGAZINE VOLUME 8, ISSUE 12 to two factors. The first is Cross River’s expertise within the areas of regulatory compliance and consumer protection. The second is the fact that Cross River has built its own technology from the ground up, enabling it to move at the same speed as its partners. “Typically, a technology company is fearful of integrating with the banking system, because most banks will slow them down and hinder innovation,” says Goldfeder. “So, I think Cross River’s secret to success is the way we’ve grown alongside our partners and allowed them to continue developing innovative products and services.” Another reason for Cross River’s greater agility and flexibility when compared to other banks is timing. Cross River began in 2008 in the immediate aftermath of the global recession. While most banks were exiting the financial services industry, dealing with bad assets, de- CROSS R I VER BANK risking, and managing significant balance sheet problems, Cross River didn’t have to deal with such baggage. According to Goldfeder, “On top of trying to get their house in order, traditional banks also had to navigate a new regulatory structure as a result of Dodd-Frank. Although most people said we were crazy to open a bank at that time, Cross River saw an opportunity and stepped into that ecosystem. We decided to enter when most people were running away.” The idea at the heart of Cross River is simple – to find ways to serve communities and support borrowers who need access to credit and other financial services. As a new bank, it was able to build its entire business model on top of the emerging regulatory structures. This meant that Cross River was not burdened with legacy systems. It also meant that the bank had a clean balance sheet and assets to deploy.