Year-End Message from Gilles

When I think of 2024, I am reminded of a quote by the Austrian philosopher Viktor Frankl: “When we are no longer able to change a situation - we are challenged to change ourselves.”

As I lookback to 2008 and the founding of Cross River, what began as a daring philosophy to challenge the status quo, a mission to provide greater access to financial services, and the ambition to make the world a better place, has evolved into a dynamic enterprise that sits at the heart of modern fintech, and that dares to change itself and adapt. Over the years, we’ve seen consumer well-being too often overshadowed by political agendas, special interests, and a relentless thirst for control—factors that can breed inertia rather than progress. But true progress requires risk, and the key to success lies in identifying and mitigating that risk.

When we launched, financial technology—or “fintech”—wasn’t a new concept, but it was undergoing a rebirth that would forever alter the economic landscape. Silicon Valley was doing what it does best: fostering disruption, innovation, and the disintermediation of banking services. A few banks stepped in, each with different models, product offerings, and capital commitments. Cross River saw this as an opportunity not only to participate but to lead—to help establish the risk management and compliance frameworks that would ensure this new era of finance could endure market changes and stakeholder pressures.

The stakes were high then, and they remain high today. Without a thoughtful approach, fintech’s growth could be derailed by political forces, special interests, and misinformation. That’s why Cross River has always championed thoughtful regulation—but regulation that’s risk-based and rooted in logic and commonsense. Such an approach protects consumers and small businesses while encouraging responsible innovation.

Today, Cross River is on the verge of processing our one billionth payment transaction and originating our one hundred millionth consumer loan. Millions of Americans now have access to life-changing credit thanks to our efforts. How did we get here? By fostering a culture of innovation, dialogue, agility, and respect for diverse ideas. Above all, our extraordinary and devoted employees, our Cross River family, have embraced our core values, championed the needs of our clients, and navigated a regulatory environment that is often unpredictable. As we set our sights on the future, let us take a moment to reflect on the successes and lessons of the past year.

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Some highlights from this year:

• Record-breaking growth in payments: We exceeded 3 million RTP® transactions in September 2024 alone, an extraordinary milestone in providing consumers access to their funds when they need it the most. Total payments transaction volume grew 120% year-over-year (YoY), and our monthly merchant acquiring volume surpassed $10 billion throughout Q3 2024, marking an incredible 2165% YoY increase with continued demand.
• Lending milestones: Our platform lending origination volumes and fintech banking payments continue to increase quarter-over-quarter, driving strong YoY revenue growth. We’ve served over 100 million consumers with access to credit, while ensuring appropriate consumer protection.
• Expanding our product suite: We’ve launched new products and solutions for our partners, including 24/7/365 instant settlement, automated deposit sweeps through IntraFi, and our Partner Experience Initiative. Additionally, we’ve continued developing our tech stack to provide prepaid and cross-border solutions. These efforts ensure our partners can meet consumer needs—when, where, and how they arise.
• Stronger partnerships and market expansion: We deepened key partnerships while launching new collaborations with blue-chip brands. This approach enables us to cross-sell more effectively, retain clients, and continue growing our pipeline with all types of companies looking to embed financial services.
• Commercial lending excellence: Our commercial loan book continues to perform well. By tightening our underwriting standards, maintaining our unwavering commitment to credit quality, and leveraging technology, our disciplined risk management approach has positioned us as a leader in sectors where many of our peers are pulling back. Bringing an innovative mindset into all areas of the business, we have strategically developed our distribution network to provide the market with high quality commercial real estate loans to improve liquidity, increase lending capacity, and further build strong client relationships.  
• One stop shop approach: We’ve doubled down on customer success and retention. We continuously enhance our product offerings to cater to our existing clients, thereby becoming more and more entrenched in their corporate lifecycle.
• New ventures: Some of these offerings include the launch of our investment banking arm and advisory services. This expansion positions us to support clients at every stage of their journey with Cross River.

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On a new era of regulation:

Since our founding, we’ve stayed true to our mission of integrating technology responsibly and challenging the status quo of where technology can play a role in regulatory compliance. Early investments in compliance, regtech, and risk management are now paying dividends. While some in the industry face heightened scrutiny, our forward-thinking approach has helped us remain ahead of regulatory expectations this year and provide new solutions and a collaborative approach for the BaaS and broader fintech industries.

The enforcement-first approach from regulators these past few years has provided us with valuable lessons and we firmly believe we are stronger because of it. While uncertainty is at many times difficult, the strength and determination of our team, leadership, industry support and some collaborative and proactive lawmakers has enabled us to weather these challenges, including our consent order; we have emerged stronger. Today, we remain even more optimistic about the future of regulation. A new administration signals the potential for a more thoughtful, innovation-friendly approach and we are all for it.

Recent developments—like the nomination of key appointees and draft legislation -- suggest that regulators recognize the need for frameworks that foster responsible fintech, AI, and crypto developments. This moment represents an opportunity for the U.S. to lead on a global stage. The fintech ecosystem has long sought clear rules for crypto, and AI’s potential to enhance risk controls and consumer access to credit cannot be overstated. Our partners and clients look to us for leadership, and we’re ready to deliver, boldly. We’re committed to playing our part in this transformation and continue to work diligently behind the scenes to bring stakeholders and visionaries to the same table.

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Full speed ahead:

As we enter 2025, the possibilities are boundless and thrilling. We’re continuing to invest in our strengths while broadening our horizons. Our mission remains clear and even more urgent: build the financial infrastructure of the future, for all. We’ll continue expanding into new markets, launching new products, and embedding cutting-edge technology into every aspect of our operations. More importantly, we’ll double down on our core values to have a lasting and positive impact on the world, around us and beyond.

We extend our warm thoughts and sincere prayers to our brethren in Israel. We hope for an immediate release of all hostages and an end to the conflict. We will continue to fight side by side in the eradication of evil and all its faces; we will help combat anti-Semitism and provide critical aid to the rebuilding of devastated communities, and the heeling of all those affected. As Viktor Frankl wrote, “Success, like happiness, is the unexpected side effect of one's personal dedication to a cause greater than oneself.”

To our employees, clients, and partners: thank you. We owe you a tremendous debt of gratitude over the years, as you have helped us continuously challenge ourselves, change, and strive for the greater good. Your counsel, trust and collaboration fuel our journey.

With appreciation and optimism,

Gilles