MVB Bank is using AI to strengthen its third-party risk management (TPRM), selecting Kobalt Labs to automate compliance workflows across its FinTech partner programmes.
The West Virginia-based bank will use Kobalt’s platform for activities including due diligence, ongoing monitoring and marketing compliance reviews. The technology is intended to reduce manual work across the partner lifecycle while bringing greater consistency to MVB’s risk oversight.
MVB also expects the platform to streamline onboarding and review processes for the FinTech companies it works with.
Kobalt’s RegTech platform automates TPRM and compliance tasks by extracting key evidence from documentation, identifying control gaps and generating risk analyses. It can also assess internal policies and procedures against evolving regulatory requirements and support reviews of security and marketing compliance.
The platform is designed to help financial institutions assess vendors and FinTech partners without relying as heavily on manual document reviews. Kobalt said its technology enables faster and more consistent assessments while providing the evidence needed to support regulatory oversight.
The company positions its platform as an AI-native approach to third-party risk and compliance, with coverage spanning federal and state regulatory requirements.
Kobalt’s clients include Chime, Upstart, Zions Bancorporation, Emprise Bank, Core Bank and Meriwest Credit Union.
MVB works with FinTech companies across payments, card issuance, sponsorship lending and online gaming, alongside its retail and commercial banking operations. Its services also include money movement and embedded finance.
The adoption comes as banks face increasing expectations around the oversight of third-party relationships. The growth of FinTech partnerships has added further complexity to the processes banks use to conduct due diligence, monitor partners and demonstrate effective risk management.
Kobalt Labs CEO and co-founder Kalyani Ramadurgam said, “If you want to show your regulators you’re doing it right, you have to add consistency and scale with technology. We’re excited to partner with MVB and help them expand and automate their risk oversight.”
MVB Financial CEO and president Larry F. Mazza added, “MVB is committed to being at the forefront of technological innovation, and we’re always looking for fintech innovators like Kobalt who are shaping the future of the industry. We share a strong commitment to effective risk oversight and management while meeting regulatory requirements, and we’re confident this partnership will help us do that at scale.”
Klaros Group, an advisory and investment firm that works with both companies, introduced MVB and Kobalt. Its principal operating subsidiary, Klaros Advisors, advises financial institutions and FinTech companies on regulatory, strategic and operational matters.
Klaros Group co-founder and partner Adam Shapiro said, “Klaros is focused on helping financial institutions modernize risk and compliance in ways that are practical, regulatorily sound, and operationally impactful. Third-party risk management is one of the areas where banks are under real pressure to do more, faster, and with greater consistency.”
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