Account Agreements and Disclosures

This guide captures the requirements for account agreements and disclosures. Note your Sponsor Bank may have additional bank-specific requirements to comply with its bank policy. These will be covered during your implementation and final approval. The below sections are intended as guidance and not legal advice.

As with any program that offers banking products or services, Synctera’s bank partners require that certain disclosures and agreements be made available, and consented to, during the customer acquisition process.

There are a few principles that must be followed for how these disclosures are presented and how a customer consents to them. Primarily, disclosures and agreements must be -

• Clearly and conspicuously available, providing the customer a reasonable opportunity to review;
• In a form the customer may keep;
• In a form in which the customer is able to indicate clear and unequivocal acceptance.

Consent to Electronic Disclosures (E-Sign)

This establishes your ability to provide all disclosures and account information electronically through your platform. In terms of the overall flow of account opening, this should be the first disclosure a consumer views and consents to before moving forward in the customer acquisition process.

• A customer must consent to this disclosure before you can share and receive consent for other disclosures with them electronically (such as the account agreement)
• Synctera has provided a template for E-Sign consent

Privacy

At account opening, businesses offering financial products must provide consumers with a Privacy Notice explaining their privacy policies and practices. Privacy Notices must be re-sent at least annually to consumers.

• This includes what information is collected, how it is used and shared, and how it is protected, as well as a statement of rights to opt out of certain types of sharing
• Privacy disclosures must be clear, conspicuous, and in a language an average person can readily understand.
• Synctera has provided several templates, which fintechs can select depending on their privacy practices.
• Sponsor Bank Privacy Notice must also be included

Terms of Service

These are the general terms of service that apply to your platform.

• This agreement is between your company and the customer, and it should not include banking terms and conditions.

Deposit Account Agreement

These terms govern the use of your deposit product

• This agreement is between the sponsor bank and your end customer
• Deposit account agreements should establish a contractual relationship between your bank and your end customer to open up a checking / savings account
• Synctera or Sponsor Bank provides a template for deposit agreements
• Interest-bearing products must also include a disclosure of the effective interest rate (particularly if it will change)

Other Product Agreements

Other product terms and conditions or agreements may exist depending on the product and services being offered. As an example, this may include a cardholder agreement or a secured deposit account agreement.

Patriot Act KYC Notice

This is a notice that explains the Sponsor Bank’s obligations under the USA Patriot Act.

• This notice is required for consumer-oriented products and services, i.e. not any type of business account although separate language may be provided to business accounts.
• Consent is not needed, but this notice should be displayed when gathering customer data for verification.