Parcha

I'm super excited to welcome Xia to our founding engineering team! For this role we were looking for a hardcore builder who could work across the stack to solve any problem, including helping us scale our backend, jumping into applied AI when needed, and even working on frontend in a pinch. We were looking for the elusive 10X engineer, someone who can outbuild my co-founder Miguel Rios-Berrios. Here's what made us a "Hell yes!" on hiring Xia - He has a hardcore CS background and crushed our technical interviews - At Meta, he scaled Cassandra globally – fun fact I learned from Xia: Instagram is built on Python. Who says Python can't scale?! - At Brex he solved some gnarly problems in user roles and permissions - He spent the last year experimenting with AI and built a product to help realtors review lengthy contracts What made Xia stand out the most however, was that he approaches every challenge we throw at him with the words "Yes, let's do it." In his first week at Parcha, Xia shipped a demo end-to-end, including prompt engineering, for a new use case for one of our customers, which will soon convert to a six-figure contract! This was a great example of two of our company values: Act with urgency & Believe (like Ted Lasso) Welcome to the team Xia! -- If you want to spend less time on Zoom calls and more time shipping like Xia, DM me! We're hiring for applied AI and full-stack roles.

🤯 Did you know that before 1986, money laundering wasn't even a federal crime in the United States? 💰 In 1970, a bank teller in Manhattan accepts a paper bag containing $50,000 in cash from a well-dressed customer. No questions asked. No forms filed. No eyebrows raised. This wasn't just common practice—it was perfectly legal. For criminals looking to launder money through the U.S. financial system, it was the golden age. The evolution of U.S. financial compliance is a fascinating story of how regulators adapted to emerging threats - from drug cartels in the 80s to internet banking and peer-to-peer payments in the 2000s to cryptocurrency today. 🔍 At Parcha, we've been researching the five landmark laws that transformed how financial institutions prevent crime and the evolution of AML legislation in the US over the last 50 years. 📚 We've published an article and podcast breaking down how each law responded to the challenges of its time, and what this means for fintech builders today. For product managers, fintech and banking leaders trying to navigate an increasingly complex regulatory landscape, understanding this context is crucial. Check out our latest post and the episode of Compliance Accelerated (link in comments). Would love to hear your thoughts on which regulatory changes have most impacted how you build products. 👇 https://lnkd.in/gVZxhMMN

One challenge keeps coming up in conversations with banks and fintech teams when it comes to business onboarding: the dreaded back-and-forth with collecting corporate documents for KYB. "We need one more document..." "Could you please resubmit this..." "This format isn't quite right..." 📊 According to a recent study, 40% of consumers abandon banking applications due to these lengthy processes. 🚀 That's why I'm incredibly excited to share our latest product at Parcha: Real-Time Document Requests & Verification! Here's what makes this game-changing: 🏃♂️ Transform weeks of back-and-forth into minutes 🤖 AI instantly verifies documents as they're uploaded 💡 Immediate, clear feedback if something's wrong 🎯 One-click document requests for your team 🔒 Secure, personalized submission links In a recent proof of concept we completed with FIS, we achieved 98% accuracy on document verification without any additional customization. The best part? Watching customers smoothly complete their onboarding without the usual friction and frustration. 🤝 We're just getting started with reimagining the onboarding experience at Parcha. Link to the full blog post in the comments and don't forget to check out our other solutions at parcha.com

🤔 What Trump's Second Term Could Mean for Fintech, Banking and Crypto Compliance There's a lot of speculation about how a second Trump term could reshape compliance. Having worked on compliance software at both Coinbase (during Trump's presidency) and Brex (during Biden's presidency), I've been thinking about what this means for our industry. Here's my perspective on what's likely to change and how companies should prepare. 🎯 Three Key Changes to Watch - Crypto Regulation Shift: The biggest change might be in crypto oversight. Trump's recent pro-crypto statements and criticism of banks suggest we could see crypto regulation move from the SEC to the CFTC. This would fundamentally change how crypto companies approach compliance. - Banking Innovation: Traditional banks might find more freedom to innovate, particularly in crypto services. The rumored federal Bitcoin reserve could accelerate institutional adoption. However, banks will need robust compliance frameworks to manage the associated risks. - State vs Federal Tension: While federal regulations might relax, state-level oversight - especially in places like New York and California - will likely remain strict. Companies will need sophisticated compliance programs that can handle this regulatory patchwork. 🔄 The Compliance Paradox Despite Trump's deregulatory reputation, his first term actually saw record levels of OFAC enforcement actions. This highlights an interesting paradox: while broad financial regulations might ease, specific enforcement areas - especially around international money flows - could intensify. Why? Trump's America First could translate into heightened scrutiny of cross-border transactions, particularly with countries like China. Banks and fintechs might find themselves navigating fewer rules overall but facing more intense scrutiny in specific areas. 💡 What This Means for Compliance Teams Having built compliance technology strategies from scratch, I think the key to navigating this changing landscape will be flexibility. Here's what compliance teams should focus on: - Build adaptable compliance frameworks that can quickly adjust to regulatory changes - Invest in technology that can handle multi-jurisdictional requirements - Maintain strong state-level compliance even if federal rules relax - Develop robust international transaction monitoring capabilities 🤔 Looking Ahead The reality is, we're entering uncharted territory. The next few years could see the biggest shake-up in financial compliance since Dodd-Frank. Companies that build strong, adaptable compliance programs now will be best positioned to thrive in this new environment. Want to learn more? Check out our blog post below or listen to the podcast via the link below. We discuss Trump's second term and what it means for fintechs, banking and crypto in our latest episode of Compliance Accelerated. https://lnkd.in/gjDbdGCk

🎙️ New Podcast Episode Alert: Compliance in the Age of Stablecoins The stablecoin revolution isn't just about crypto - it's transforming how global businesses operate. In our latest Compliance Accelerated episode, we explore stablecoins are reshaping cross-border payments and what it means for compliance. Key insights from our deep dive: 📈 The Numbers Are Staggering: - Stablecoins now account for 40% of active crypto wallets - $150B in monthly transaction volume - $53B in LatAm transactions alone in 2023 💡 Real World Impact: Scale AI is already using stablecoins to pay global contractors, bypassing traditional banking friction. It's not just fintech companies - businesses across industries are adopting this technology to solve real payment challenges. 🔑 Why This Matters: - Traditional wire transfers: 3-5 business days - Stablecoin transfers: Minutes - Significantly lower fees - 24/7 accessibility ⚠️ But Here's The Thing: While the technology is revolutionary, compliance cannot be an afterthought. The key is maintaining speed and efficiency while upholding the highest compliance standards. 🤔 The Big Question: Could stablecoins become the foundation for truly borderless labor distribution? The technology is here - the challenge lies in navigating the regulatory landscape. 🎧 Listen to the full episode for actionable insights on incorporating stablecoins into your business while staying compliant: https://lnkd.in/gx92Cv9w What's your take on stablecoins? Are you seeing their impact in your industry?

Parcha is a nimble and highly technical team moving fast to build the automation layer for fintech and banks to manage risk. We use AI to automate compliance processes like document reviews, screening, and due diligence on businesses and individuals. Our customers include pre-IPO, public fintechs, and multiple US banks. We also have a strong pipeline of top fintechs piloting our product. We are looking for an exceptional Applied AI Engineer with experience building technology using large language models. This person will own mission-critical AI workflows used in production by the largest fintechs in the world. This is an onsite role. We are based in San Francisco, CA. If this role sounds exciting to you, let's chat!

🎙️ Just dropped Episode 5 of Compliance Accelerated: What Rule 1033 Means for Fintechs & Banks The CFPB's final ruling on Section 1033 is here, and it's a game-changer for open banking in the US. As someone who's spent years in fintech, I'm fascinated by how this will reshape the industry. Here are my key takeaways from our latest episode: 1️⃣ Not Just Another Regulation: This is the US's first major step toward true open banking. It's about giving consumers control over their financial data and the right to share it with who they choose. 2️⃣ Timeline Matters: Large institutions (>$850M in assets) need to comply by April 2026, while smaller ones have until 2030. But don't wait - the complexity of implementation means you should start planning now. 3️⃣ Mixed Industry Reception: • Fintechs are generally supportive but concerned about data use restrictions • Banks worry about security and liability • Already facing legal challenges from the Kentucky Bankers Association 4️⃣ Opportunity Through Innovation: Despite the compliance burden, this opens doors for new products and services. Imagine instant loan approvals or truly personalized financial management - all powered by secure, permissioned data access. 🔑 The Bottom Line: This isn't just about compliance - it's about reimagining financial services. Companies that see this as an opportunity rather than just a regulatory burden will come out ahead. 🎧 Listen to the full episode for a deep dive into the specifics, industry reactions, and how to prepare below. Links to Spotify and Apple Podcasts in the comments! Learn more about rule 1033 here: https://lnkd.in/gyCNYvgq

🎙️ Compliance Accelerated Episode 4: How AI Agents are Changing Financial Services is out now! In this episode, our AI hosts discuss Simon Taylor 's recent post on the rise of AI Agents in Financial Services, the role of AI in augmenting human workers, and the importance of transparent and responsible AI models. Check out the full 12-minute episode below! P.S. The Compliance Accelerated podcast is now available on Spotify and Apple Podcasts! Links in the comments.

Stripe just acquired Bridge, a stablecoin API provider and Parcha's first customer, for a reported $1.1B! If you're in fintech, here's why this is an acquisition definitely worth paying attention to... If you don't live and breathe crypto daily, it might not be obvious why a stablecoin startup became a billion-dollar (reported) acquisition by Stripe. I helped launch USDC at Coinbase in 2018 when stablecoins were a very nascent technology. We saw their potential to revolutionize global payments, but for years, they were mostly used by crypto-native companies and traders to move money between cryptocurrencies and exchanges quickly. Fast forward to today, and Bridge's acquisition by Stripe validates the massive mainstream potential for stablecoins in the global financial system. Here's why this acquisition is strategically brilliant for Stripe: 🌍 Global Payment Infrastructure: Stablecoins offer a way to move money across borders instantly and cheaply. For Stripe, which operates in over 40 countries, this could dramatically reduce the complexity and cost of its global payment network. 🔄 24/7 Settlement: Unlike traditional banking systems, stablecoins operate 24/7. This means faster settlement times for Stripe's merchants, improving cash flow and reducing risk. 💸 Emerging Market Expansion: In countries with volatile currencies or limited banking infrastructure, stablecoins can provide a stable, accessible financial tool. This aligns perfectly with Stripe's mission to increase the GDP of the internet globally. 🏪 Crypto-Native Businesses: As more businesses build on blockchain technology, Stripe can now offer them native payment rails, expanding its addressable market. 🔖 Regulatory Positioning: With increasing regulatory clarity around stablecoins, Stripe is positioning itself at the forefront of compliant crypto-fiat bridges. 💰 Treasury Management: For multinational corporations like SpaceX (one of Bridge's clients), stablecoins offer an efficient way to manage global treasury operations. This opens up a new customer segment for Stripe. 🔮 Future-Proofing: As digital currencies (including CBDCs) become more prevalent, Stripe is ensuring it has the technology stack to remain competitive. The speed at which Bridge grew – from launch to billion-dollar acquisition in just 18 months – speaks volumes about the demand for this technology. It's a testament to the Bridge team's execution and the massive opportunity in the stablecoin space. This acquisition isn't just about Stripe entering crypto; it's about reimagining the future of global money movement. As someone who's been in this space for years, it's incredibly exciting to see stablecoins move from a niche crypto product to a core part of the future of payments. Huge congrats to Zach Abrams, Sean Yu and the rest of Bridge team!!! If you're building global money movement products and want to accelerate the compliance part, we're here to help!