WOLF & CO Case Studies Wolf Guides Synctera Through Model Validation Process

Wolf Guides Synctera Through Model Validation Process

Synctera helps fintechs to build, launch, and scale financial products, and then partner with financial institutions through their banking as a service (BaaS) platform. To act as an effective matchmaker between a financial institution and a fintech, Synctera needs to ensure that the fintech complies with the financial institution’s regulatory requirements. A few of Synctera’s fintech partners provided Anti-Money Laundering (AML) and Know Your Customer (KYC) monitoring services using a model. Synctera needed help validating the model’s effectiveness and controls – this is where Wolf & Company’s model validation team was able to provide guidance.


Synctera sought to provide assurance to both its fintech and financial institution partners, verifying that their model complies with regulatory expectations and that the services would not be scrutinized during future exams. Synctera contacted Wolf & Company’s model validation team to assist with producing a report that would provide their financial institution assurance over those AML-related models.


Wolf and Synctera met to understand the financial institution’s use of the AML models and their needs in terms of assurance related to the models. The Wolf & Company model validation team provided insights regarding the model risk management regulatory requirements at financial institutions, and how those extended to Synctera and their fintech partners. Wolf designed a program that included performing parallel analysis to verify that the models were providing accurate results and evaluated the model controls to ensure that proper model oversight was in place. Wolf provided guidance on strengthening model oversight controls and documentation to meet regulatory expectations.

Synctera is built with risk and compliance at its core. We needed an experienced risk and compliance partner that could help us with model reviews within a fintech environment. Wolf helped us achieve just that and remained flexible and communicative throughout the process.”

Mitchell Lee

Chief Risk & Compliance Officer



Wolf recreated the model’s performance to verify that the results being provided were accurate

Synctera obtained a model validation report that could be provided to clients asserting their model’s compliance with model risk management requirements

Together, Wolf and Synctera ensured Synctera’s fintech partners met financial institution compliance needs