600B+
in consumer applications for financial services
Compliance
Even Staff
2021-10-21
Keys to Compliance: Maintaining a Broad Set of Licenses
At Even, it is fundamental to our business to take a proactive approach to compliance. It’s one thing for a company to say it’s committed to upholding the laws and regulations of its industry, it’s another to actually see that commitment through, as it requires a dedicated, well-researched plan of attack when it comes to compliance standards and practices.
For a company like Even in particular, we have an obligation to multiple parties beyond just Even itself, from a compliance point of view. This includes our broad network of channel partners who embed our technology and, in turn, the consumers that access the Even API via these channels.
Licensed to Thrive
One aspect of compliance where commitment is especially crucial is licensing. Any company providing some type of financial service, whether directly or as a lead broker, must comply with applicable licensing requirements at the state level. In the case of a fintech company like Even, licenses ensure that we are providing services in a safe, responsible manner, and that consumers are protected from predatory or other illegal business practices.
As the definitive search, comparison, and recommendation engine for financial services, Even does not take its licensing requirements lightly. Obtaining and maintaining proper licenses requires diligent work, as they encompass a broad set of financial services and vary from state to state. For example, one state’s licensing requirements may depend on the amount of the loan, while another’s may hinge on compensation models.
Along with our network of financial institutions, we collectively shoulder the responsibility to create a truly turnkey experience for our channel partners from a compliance perspective, no matter what kind of integration they utilize to access the Even platform. In the licensing landscape for financial services, Even essentially acts as the middleman between the providers in our network and consumers seeking a financial service through one of our channel partners.
Say CNBC wants to build their own personal loans marketplace on their website. It would require several individual relationships with lenders to ensure their products are being marketed with proper licenses in place. With Even, however, we shoulder all of the licensing requirements for our large network of channel partners, like CNBC, as we are the connection to the lenders and have those relationships already in place. In turn, our channel partners facilitate high-tech marketing to integrate our services, which allows us to assist our regulated lending partners and their borrowers in loan transactions.
The Even Umbrella
Achieving these goals — to construct what we refer to as the “Even licensing umbrella of coverage” — requires planning, action, and communication.
Planning necessitates an ongoing survey of all 50 states, to better understand their compliance standards, lending laws, and which licenses are required based on Even’s business model. For instance, all 50 states require licenses to broker mortgage and insurance products, while consumer lending products, like personal loans, have different enforcements in each state. Therefore, a certain state license for consumer lending may not be required based on your company’s business model.
After assessing the landscape, we then take action by working diligently to obtain and maintain licenses, which requires constant attention to ensure we stay on track of evolving laws and regulations, and in anticipation of renewals.
Finally, clear communication, both internally and externally, is key to a successful and smooth licensing program. We employ a team that understands each state and its requirements, as licensed entities are subject to annual audits by state regulators who examine everything from your services and products, to your advertising and disclosures, to your financial records, and beyond.
To date, Even has secured 110 licenses across our personal loan, mortgage, and insurance product verticals. The extent of our work and number of licenses we have secured are unparalleled in the financial services industry for a business of our nature.
At Even, compliance isn’t just a talking point, it’s a company mission fostered on dedication, accuracy, and teamwork. Our commitment to licensing reflects that, creating an umbrella of coverage that our partners can depend on.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content
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