President, Pathward Financial
Search every verified Anthony Sharett interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. Anthony Sharett, president of Pathward Financial, discussed the state of banking-as-a-service (BaaS) in an October 2024 podcast interview recorded before the Synapse bankruptcy. He described Pathward as a purpose-driven organization focused on powering financial inclusion for all, noting that millions of Americans are unbanked, underbanked, or underserved. Sharett said Pathward partners with fintechs to provide products and services to those who need them most. He stated that despite regulatory challenges in the BaaS space, particularly around third-party risk oversight, Pathward remains bullish and excited about what is on the horizon. Sharett said that middleware companies have entered the space without fully understanding risk and compliance requirements, and that some banks have partnered without the necessary frameworks to safely go to market. He said Pathward has taken years to develop a risk and compliance framework that starts with culture, embeds risk professionals within the business, and continuously looks for enhanced technologies to prevent fraud and improve risk reporting. In a separate podcast episode focused on equitable financial pathways, Sharett said that powering black and brown businesses is personal to him, citing his grandfather's experience as a business owner in the Jim Crow South. He said Pathward provides reloadable prepaid cards that allow people who cannot open checking accounts to pay for groceries, gas, and utilities, and that Pathward is probably the first or second largest issuer of those cards in the United States. Sharett said the bank supports organizations like DreamSpring, which provides micro-entrepreneurial loans predominantly to minority women-owned businesses, and provides scholarships to minority women aspiring to be entrepreneurs. He said Pathward believes in a collaborative approach and recognizes that it is better together through partnerships with organizations like the Arizona Black Chamber and Hispanic Chamber. Sharett said the most valuable lesson he has learned is that irrespective of the business or market, it always comes back to people.
“We know that there are millions of Americans that are unbanked, underbanked and underserved and that creates a gap, and what we try to do by partnering with fintechs and third parties is to provide access to capital to money for individuals and for small and midsize businesses.”
“Powering black and brown businesses is personal. My grandfather was a business owner in the Jim Crow South, and I saw his struggles as an entrepreneur and a black man. Ever since, I knew I wanted to help those not get a handout but a hand up.”
“We provide reloadable prepaid cards that allow people who cannot open checking accounts to pay for groceries, gas, and utilities. We are probably the first or second largest issuer of those cards in the United States, meeting a critical gap for the unbanked.”
“It's very difficult for small entrepreneurs and small businesses to get SBA loans or USDA loans to find the working capital they need to grow and scale their businesses. At PATHWARD, we work with entrepreneurs not only to get loans but also to help them grow and scale their business.”
“We support organizations like DreamSpring, which provides micro-entrepreneurial loans predominantly to minority women-owned businesses. We also provide scholarships to minority women aspiring to be entrepreneurs to help cover dependent care costs so they can attend college.”
“We believe in a collaborative approach. We recognize that we are better together, and through partnerships with organizations like the Arizona Black Chamber and Hispanic Chamber, we can address systemic barriers and help minority-owned businesses grow.”
“There is always going to be a need for businesses in the service industry, whether restaurants, trades, or personal services. Additionally, there is a real gap around employment, and technology proficiency, including AI, is a growing opportunity to help close gaps in black and brown communities.”
“There are lots of ways to own a small or midsize business. Buying an existing business with cash flow and customers can sometimes be easier to grow than starting from scratch. Many small businesses in Phoenix can be purchased for less than $50,000.”
“The most valuable lesson I've learned is that irrespective of the business or market, it always comes back to people. At PATHWARD, we don't pick winners or losers; we lend to anyone because financial inclusion is about people. We prioritize partnerships that align with our purpose and values and meet consumer needs in...”
“We are a purpose-driven organization; our purpose is powering financial inclusion for all. We recognize that millions of Americans are unbanked, underbanked, or underserved, and we try to fill that gap by providing products and services to those who need it most through partnerships with fintechs.”
“Despite some regulatory challenges in the banking-as-a-service space, particularly around third-party risk oversight, we remain bullish and excited about what's on the horizon. Many new entrants are finding that having the right governance and risk framework to protect consumers is very important but also very hard to...”
“One of the challenges we've seen is middleware companies entering the space without fully understanding risk and compliance requirements, and some banks partnering without the necessary frameworks to safely go to market. Technology may appear innovative but is very difficult to operationalize and scale responsibly.”
“We have taken years to develop a risk and compliance framework that not only ensures we have good products to help consumers but also the right partners to grow and scale safely and responsibly.”
“Our risk and compliance framework starts with culture. We have an appropriate risk appetite and take risk and compliance seriously as both a regulatory moat and a business opportunity. Our employees understand the importance of protecting consumers through our partners.”
“We embed risk and compliance professionals both within the business and in second line teams, and continuously look for enhanced technologies to prevent fraud and improve risk reporting, aiming to be predictive about risks that could disrupt our framework.”
Join host Casey Gilchrist and respected guest Anthony Sharett as they explore the vital efforts to advance equity and support for ...
Editor's note: This interview was recorded on April 16, six days before the news of the Synapse bankruptcy and several weeks ...
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